Chip maker Micron (MU) reported a bad quarter after the close Thursday. While numbers for the quarter ended June 2 were fine, MU’s guidance was quite weak. MU guided revenue to $7.2 billion plus or minus $400 million. The comparable quarter last year had revenue o $8.274 billion and from what I gather analysts were expecting something on the order of $9 billion. Similarly, they guided EPS to $1.63 plus or minus 20 cents. In the year ago quarter it was $2.42.
But after falling hard initially, MU closed the after hours down only 93 cents (-1.68%). If MU somehow manages to go green Friday on these numbers, it would suggest to me that all of the bad news is priced in for now – and this may apply more broadly to the rest of the market as well. It doesn’t hurt that – from a seasonality standpoint – July 1 has been the best trading day of the year going back to 1989.