U.S. stocks face weaker open as Walmart slides, Micron unveils $10 billion lab plan

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Stocks face weaker open

Highlights

Walmart shares drop 6.5% after reporting 2.6% second-quarter comparable sales growth below expectations and issuing light earnings guidance for the current period.
Micron announces $10 billion investment in Micron Research Labs, targeting AI-driven technology breakthroughs and reinforcing U.S. semiconductor leadership.
Samsung is reportedly planning a new $72 billion shareholder return policy, highlighting robust cash flow among memory-chip makers amid the ongoing AI boom.

Market moves and company updates driving Thursday trade

As reported by CNBC, investors are tracking a softer start for U.S. markets after the S&P 500 ended its three-day losing streak on Wednesday but finished well below session highs as momentum from the Treasury Department’s bond-buying announcement faded.

Longer-term Treasury yields are moving higher again on Thursday morning, with the 30-year yield creeping up alongside the 20-year and 10-year. The move is adding pressure to risk appetite after the previous session’s relief proved short-lived.

Micron says it is investing $10 billion to launch Micron Research Labs, a move the company ties to new technology breakthroughs in artificial intelligence and the future of American technology. The announcement comes as CEO Sanjay Mehrotra is due to discuss the chipmaker’s plans in an extended interview from Boise, Idaho, a key base for the company.

Merck is seeing split analyst reaction after promising cancer vaccine results sent its shares up nearly 13% in the prior session. RBC Capital Markets cuts the stock to hold from buy, arguing the risk-reward balance is now fairly valued, while Morgan Stanley upgrades Merck to buy from hold on expectations it can better manage the coming Keytruda patent cliff.

Retail, semiconductors and industrials shape sector outlook

Walmart shares are down about 6.5% in early trading after the retailer reports weaker-than-expected second-quarter comparable sales growth of 2.6% and issues light earnings guidance for the current period. Management highlights tariff refunds, e-commerce and advertising as support factors, but lower drug prices are hurting pharmacy performance; CFO John David Rainey says consumers have "been very resilient in this environment."

Lowe’s is also facing a reset in expectations after quarterly results that management itself describes as not that strong. UBS cuts its price target to $275 from $285, while Citi lowers its target to $260 from $267 and says forecasts for the rest of the year are now de-risked; analysts point to Lowe’s heavier exposure to do-it-yourself customers compared with Home Depot’s more professional customer mix.

Target is emerging as the strongest retail performer of the quarter so far, prompting price target increases from firms including Evercore and Goldman Sachs, even though most analysts still rate the shares hold. Best Buy is also getting a lift ahead of next week’s earnings after Piper Sandler raises its price target to $85 from $77 on improving traffic trends and stronger expectations for second-quarter comparable sales.

In semiconductors, Samsung is expected to announce a new shareholder return policy worth about $72 billion later this month, according to MoneyToday, underscoring the cash generation across memory-chip makers during the AI boom. Deere, meanwhile, continues to benefit from AI-linked strength in construction demand, helping offset a prolonged downturn in agricultural equipment demand as the company posts revenue and earnings beats and signals that 2026 should mark the bottom of the farm cycle.

Micron’s AI-driven expansion in Boise was the focus of our earlier coverage, detailing how the company’s rapid growth and share-price surge have translated into local hiring, construction, and rising wealth. We also noted the flip side of that boom: heavier traffic and mounting housing-cost pressure that could squeeze residents not directly benefiting from Micron’s buildout.

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