Hot Stocks: Chip equipment stocks rally; SMCI surges on outlook; UNP, WDFC drop on earnings
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Concerns that the Federal Reserve will continue its ultra-hawkish policy weighed on stocks on Thursday. The major U.S. equity indices ended lower, further trimming gains posted early in the week.
Bucking the overall trend on the day, the semiconductor equipment sector generally posted gains. A well-received earnings report from Lam Research (NASDAQ:LRCX) carried the firm's stock higher, along with names like ASML (ASML), Applied Materials (AMAT) and KLA Corp. (KLAC).
Elsewhere, Super Micro Computer (SMCI) represented another standout gainer, surging after it disclosed a raised forecast. 
On the downside, Union Pacific (UNP) and WD-40 (WDFC) both recorded notable declines following the release of their respective earnings reports.
Sector In Focus
Strong results from Lam Research (LRCX) prompted buying in the semiconductor equipment sector. Investors pushed into the segment after the company issued a better-than-expected forecast for the current quarter.
Shares of LRCX rose almost 11% after the firm exceeded expectations with its Q1 profit, with revenue rising 18% from last year. Looking ahead, LRCX predicted Q2 revenue of $5.1B, plus or minus $300M. Analysts were looking for a total of around $4.74B.
Bolstered by the news, ASML (ASML) rose about 3%, while Applied Materials (AMAT) and KLA Corp. (KLAC) advanced nearly 2%.
Standout Gainer
An upbeat forecast attracted investors to Super Micro Computer (SMCI). Shares jumped 10% after the company raised its revenue and earnings forecast.
SMCI said it now expects Q1 net sales of $1.78B to $1.82B. This was above the $1.52B-$1.62B range the firm had previously predicted. Analysts had targeted a figure around $1.57B.
The company attributed the forecast to increased customer design wins.
Thanks to the rosy projections, SMCI jumped $5.75 to close the session at $61.34. Still, even with the advance, the stock remained in a recent trading range, sitting off a 52-week high of $74.93 reached in August.
Standout Decliner
Union Pacific (UNP) lost ground in the wake of its quarterly report. Even with Street-beating results for the most recent quarter, the acknowledgment of lingering headwinds sent the stock lower by 7%.
The railroad operator reported quarterly results that surpassed expectations, with operating revenue that climbed 18% from last year. However, UNP also predicted ongoing efficacy issues until the end of the year.
UNP finished Thursday's trading at $186.45, a decline of $13.61 on the day. Shares also touched an intraday 52-week low of $185.83. 
Adding to weakness seen from March until July, UNP has now lost about a quarter of its value in 2022. The stock also sits about 33% below a 52-week high of $278.94 reached in late March.
Notable New Low
WD-40 Company (WDFC) endured a wave of selling pressure following the release of its quarterly update, as the company predicted slowing growth next year. 
The maker of mechanical lubricant reported Q4 revenue that rose 13% from last year. However, the firm predicted sales growth of just 5% to 10% in fiscal 2023.
Investors fled from the stock after the release of its forecast, sending shares lower by $19.72. With the decline, WDFC closed at its intraday 52-week low of $151.11.
WDFC has now dropped nearly 38% for 2022 as a whole. 

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