|Day's Range||5.75 - 5.94|
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is...
U.S. stocks retreated on Friday, but certainly haven't cratered over the last few sessions. It looks like the stock market is simply digesting its big gains from last week. Will this weekend or next week carry increased risk? We'll see. Until then, let's look at a few top stock trades. Top Stock Trades for Tomorrow 1: Micron Click to EnlargeMicron (NASDAQ:MU) is under pressure like most memory and chipmakers on Friday. However, that follows very discouraging action from this week, after MU stock topped out near $36. Already it's down almost 10% from those levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf it loses Friday's lows, it could be a slippery slope for Micron. In that case, a drop down to $30 could be in the cards. * Chewy IPO: 14 Things for Investors to Know If semis and tech catch a bid next week, see that Micron can hurdle $34 and its 20-day moving average. Otherwise, this one looks risky on the long side, particularly with a percolating trade war. Top Stock Trades for Tomorrow 2: Barrick Gold Click to EnlargeGold has been doing well as investors worry about the global economy. As such, miners like Barrick Gold (NYSE:GOLD) have been doing well too.The recent rally has taken GOLD right into range resistance. Of course, it's possible that the stock is able to breakout. But I'd rather play the move after the fact than bet on it happening beforehand.If range resistance is in fact resistance, look for GOLD to pullback into its 20-day to 50-day moving average range, between $12.82 and $13.07. A breakout over $14 could trigger a larger move higher. Top Stock Trades for Tomorrow 3: Chewy Click to EnlargeChewy (NYSE:CHWY) made its public debut on Friday, erupting from its $22 IPO price and opening at $36. Here are 14 things to know about the company.Shares are not exactly reminiscent of Lyft (NASDAQ:LYFT), as they back off the opening level highs, but they do share some resemblance. Investors are now trying to figure out if this IPO is going to be an Uber (NYSE:UBER)/Lyft debacle, or a Zoom Video (NASDAQ:ZM)/Beyond Meat (NASDAQ:BYND) situation. Truth is, no one knows.Risk-taking speculators can take a flyer on CHWY, banking that higher prices are here to come. At the end of the day though, trading day-one IPOs is really just speculation. No one really knows which way it will go.Just know its range. Over the IPO open price of $36 and CHWY can run to its day-one highs near $41 and possibly higher. Below its day-one low and shares can move lower, although I'd be surprised to see it down to $22 anytime soon. Trading this close to the IPO date isn't for me. Top Stock Trades for Tomorrow 4: Semiconductor ETF Click to EnlargeThe VanEck Semiconductor ETF (NYSEARCA:SMH) is under pressure Friday, falling about 2.5% thanks to the earnings results from Broadcom (NASDAQ:AVGO). The latter beat earnings estimates, but provided a tepid outlook as the trade war continues to weigh on its business.While AVGO was the catalyst Friday, a whole host of stocks will drive the SMH going forward. Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Micron and others will all have an effect.As for the ETF, the 50-day promptly rejected the SMH, while the 20-day could do little to buoy the name. That leaves the 200-day -- which didn't help much last month -- and last month's lows near $97.50 as the must-hold spot.Below those lows opens the SMH to a drop to the sub-$93 area. On a rebound, we need to see the SMH's series of lower highs (purple arrows) cease and for the SMH to clear its 50-day moving average.Bottom line: Watch the 200-day and last month's lows if the decline continues. Watch the 50-day and $109 if the SMH rebounds. Top Stock Trades for Tomorrow 5: Preferred Shares ETF Click to EnlargeThe iShares Preferred Stock ETF (NYSEARCA:PFF) has been on fire. But could the run be coming to an end?Once the PFF reclaimed its 10-week moving average, it has been on absolute fire. That was in the last week of December, by the way. In any regard, multi-year channel resistance is up near $37, while the MACD and RSI (blue circles) are suggesting momentum could be topping out as the ETF flirts with an overbought condition. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 That's not to say the PFF can't go to $37, $38 or even higher. Just that over the past few years, this resistance mark has generally kept a lid on the stock. Investors will likely keep buying on pullbacks into the 10-week moving average until it fails. If and when it does, a drop down toward channel support and the 50-week moving average could be in the cards.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO and NVDA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post 5 Top Stock Trades for Monday: MU, CHWY, GOLD appeared first on InvestorPlace.
Broadcom (AVGO) presented their second quarter earnings on Thursday after market close, and the call, as described by CNBC's Jim Cramer, was "truly depressing."
A Bank of America Merrill Lynch analyst lowered his earnings estimates for Micron due to deteriorating memory prices but reaffirmed his Buy rating on the stock, saying the difficult chip environment is priced into the company’s current valuation.
Investing.com - Broadcom fell sharply Friday, sending chip stocks lower after the company delivered an ominous outlook and reported revenue that fell short of estimates.
U.S. stock futures are trading higher this morning, erasing Tuesday's slight losses.Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.36% and S&P 500 futures are higher by 0.36%. Nasdaq-100 futures have added 0.47%.Calm settled on the options pits yesterday with calls leading the charge. Overall volume levels fell to its lowest level in weeks, particularly on the put side of the aisle. By day's end, some 15.5 million calls and 14 million puts changed hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite the sluggish trading session, the CBOE single-session equity put/call volume ratio rose sharply to 0.77 -- a two-week high. Meanwhile, the 10-day moving average moved higher to 0.66.Options traders zeroed in on energy stocks. Apache Corporation (NYSE:APA) and Halliburton (NYSE:HAL) both reversed lower, showing a continuation of their downtrends. Elsewhere, Micron (NASDAQ:MU) fell amid widespread profit-taking in the semiconductor industry.Let's take a closer look: Apache (APA)Apache shares made a rare appearance on top of the most-active options leaderboard Tuesday. The Houston-based petroleum company slid 2.39% on its second-highest volume day of the year. Just under 10.1 million, shares changed hands on the session.The drop pushed APA stock back below its 20-day moving average, reaffirming its overall downtrend. Bears shouldn't get too complacent, however. The stock has already erased yesterday's losses in premarket trading. It's currently trading up 2.50% on the heels of a 4% jump in oil prices. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever On the options trading front, the groundswell in volume was equally balanced between calls and puts. Total activity exploded to 2,717% of the average daily volume, with 150,841 contracts traded.Implied volatility ticked slightly higher on the day to 46%, placing it at the 47th percentile of its one-year range. Premiums are pricing in daily moves of 81 cents or 2.9%. Halliburton (HAL)The pain in energy stocks wasn't isolated to Apache. Bears also raided Halliburton shares, driving the oil services giant close to a new 52-week low at $21.07. The 4.6% drubbing saw above-average volume with 18.4 million shares changing hands. Volume patterns have been extremely bearish for two months with distribution days littering the landscape.Relief is coming this morning with the stock up 2.50% premarket. Unfortunately, with HAL trending lower across all time frames, it's going to take more than a mild up-gap to right the ship.On the options trading front, traders aggressively chased put options. Total activity roared to 368% of the average daily volume, with 144,181 contracts traded. A whopping 93% of the trading came from put options alone.Implied volatility remains elevated at 45% or the 64th percentile of its one-year range. Premium sellers will be happy to note this is close to the highest level of the year, suggesting short premium strategies are paying handsomely. The expected daily move is 60 cents or 2.8%. Micron Technology (MU)Semiconductor stocks weighed on the Nasdaq yesterday with Micron Technology shares leading to the downside. MU stock dropped 5.4% on above-average volume. The news was light, so I'm chalking up the drop as a technical-driven move signaling a continuation of the downtrend that emerged in May.Until the stock can break back above short-term resistance at $36, bears hold the upper hand. The next earnings report looms on June 25.On the options trading front, the day's drubbing lit a fire under put demand. Activity climbed to 157% of the average daily volume, with 182,375 total contracts traded; 62% of the trading came from put options alone.Implied volatility popped to a new three-month high at 53%. That places it at the 52nd percentile of its one-year range. Traders are now pricing in daily moves of $1.11 or 3.4%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Thursday's Vital Data: Apache, Halliburton and Micron appeared first on InvestorPlace.
U.S. futures rose on Thursday amid growing hopes that the Federal Reserve will cut interest rates, while energy stocks looked set for some relief as oil prices spiked in the wake of an attack on two oil tankers near the Persian Gulf. In commodities, crude oil surged 2.9% to $52.66 a barrel after two oil tankers exploded in a suspected attack near the Strait of Hormuz, through which a fifth of global oil consumption passes. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were both indicated nearly 1% higher in premarket trade.
When growth stocks break out, then pull back all the way to the correct buy point, should you bail? Is the stock a dud? Not always. A base on base may form.
The memory chip industry will face more difficult times the rest of the year, according to Evercore ISI, which lowered its earnings estimates for Micron citing weaker industry conditions.
Micron Technology Inc NASDAQ/NGS:MUView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for MU with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding MU totaled $88.44 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. MU credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
After a disappointing June 7 jobs report, Wall Street is now pricing in an interest rate cut by the Fed. Indeed, a rate cut expectation has propelled stocks for the past week, the best for U.S. stocks since November. One stock that has risen along with the tide is Intel Corporation (NASDAQ:INTC), the world's largest semiconductor chipmaker. INTC stock is up 3.4% since Friday, compared to a 2.2% gain for the Nasdaq Composite index.Source: stargazer2020 via FlickrIntel is scheduled to report second-quarter earnings on July 25. Today, I'd like to discuss whether the current price level of Intel stock offers a viable long-term entry point for long-term investors? How Does Intel Stock Make Money?Let us first remember what the main drivers of revenue for INTC stock are. Intel's two largest segments are the client computing group (CCG) and data center group (DCG). Combined they contribute almost all of Intel's operating profits.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCCG includes Intel's PC and mobile-device chip business. The central processing unit (CPU) is the "compute" in the computer. Intel's CGC segment makes the CPUs.INTC controls nearly three quarters of the CPU market, and Intel processors are the main component -- "Intel Inside" -- in most of the world's personal computers and servers.Yet, the worldwide PC market, which is also Intel's core market, has been flat for the past few years. And smartphones and cloud have been disrupting this segment.To shareholders' dismay, Intel has struggled to produce 10-nanometer chips, whereas Advanced Micro Devices (NASDAQ:AMD) has started taking market share with Ryzen and EPYC processors.On the other hand, Intel's DCG segment makes CPUs that are optimized for enterprise-grade hardware, namely for data-center servers. On April 2, the company held its Data-Centric Innovation Day, when it reaffirmed performance leadership in data center products and unveiled its next-gen processors as well as platform technologies.Intel currently holds a 98% share of the data center server market, which has been a consistent growth driver for the company. In 2014, about a third of Intel's revenue was data-centric; now it's half.Many investors want Intel's technological innovations to increase its ecosystem in diverse growth segments, including artificial intelligence (AI), 5G and autonomous driving (AD). These emerging sectors all require data in enormous quantities and at extremely high speeds. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% Wall Street would like to see further growth opportunities as Intel re-orients itself to rely less on PCs and improves its revenue model to capitalize on the growth of the data business globally. Where is INTC Stock Now?On April 25, Intel reported mixed Q1 2019 earnings results. Total revenue was basically flat at $16.06 billion. Investors got especially spooked when management cut both its Q2 and full-year guidance.Over the past few weeks, INTC stock has been in a free-fall after reaching a 52-week high of $59.59 in April. Later in May, it saw a 2019 low of $42.86.The recent pain in Intel's stock price has also coincided with the increased geopolitical tensions over the U.S.-China trade wars.Furthermore, Wall Street is currently debating whether the semiconductor industry, which is highly competitive and cyclical, has entered a prolonged downturn.The shares of Intel's competitors, including Micron Technology (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA), have also fallen considerably. The iShares PHLX Semiconductor ETF (NasdaqGM:SOXX) is down 8%. Could these chip stocks have reached the peak of their valuations in the eyes of value investors?In other words, the current economic and political environment in the U.S. and globally poses plenty of questions for market participants. The semis are all in the same boat and there are not yet enough encouraging signs of a second-half pickup.Intel stock owners have been resetting and lowering their growth and share price expectations. If INTC's revenue growth decelerates in the second half of the year, then the INTC stock price will also go down further.As of date, Intel stock is hovering around $47. Although the broader markets and tech stocks have gone up in the past few trading sessions, I'd urge investors to not get too optimistic with Intel stock just yet.In May, most tech stocks had been way oversold, so a relief rally was inevitable in early June. For retail investors, discipline would be rather crucial at this point.INTC stock price has a lot of support around the low-$40's. It will likely test this level again, especially if there is any general weakness in the tech sector or negative company speciﬁc news. Important Catalysts Supporting Intel's Stock PriceGoing forward, there are two important factors that will likely support Intel stock price. First one is INTC stock's dividend yield of 2.86%. Intel has increased its dividend in five of the last 10 years.Its current payout ratio stands at a respectable 28%. This metric shows the percentage of earnings paid to INTC shareholders in dividends. After paying the dividend, Intel has ample cash for investing in the core business.In general, investors pay attention to this ratio as a number over 100% would mean that a company returns more money to shareholders than it earns, meaning an unsustainable dividend in the long-run.Dividends are ultimately paid out of cash. Therefore dividend investors also pay attention to whether a company is able to generate cash. Intel's trailing twelve months (TTM) cash flow from operations is a healthy $28 billion. Its total free cash flow (TTM) for the period that ended in Mar. 2019 stood at $12.5 billion.It would be safe to say that Intel should be able continue paying and possibly increasing dividends in years to come.Only a handful of established technology companies offer investors stable and growing dividends -- an important important reason why Intel stock belongs to a capital-growth portfolio. In other words, many investors would rank Intel as a strong income stock.Secondly, with a market cap of $209 billion, Intel stock is unlikely get held down by the market for too long. The Street tends to regard large market cap companies as good and stable long-term investments.Intel's trailing P/E stands at a historically low level of 10.58. Therefore, investors looking for value in large-cap stocks are likely to be drawn to INTC stock's current valuation levels, too.In case of further price weakness, I believe that Intel management may also consider buying back shares around $40 levels -- a move that would support the stock price. Short-Term INTC Technical Chart Tells a Mixed StoryYear-to-date, Intel stock is down 2%. After investors' harsh response to the Q1 earnings report, INTC stock has suffered from a damaging technical picture. Its short-term technical chart still looks weak, and it is pointing to the possibility for more downside around the corner.Although Intel's momentum indicators, which describe the speed at which prices move over a given time period, are currently in oversold territory, they can stay oversold for quite a long time, especially when the overall trend is down.Therefore, more buy signals based on momentum indicators need to be conﬁrmed with further chart analysis before the stock is a buy from a technical standpoint.From a technical perspective, I am not expecting Intel stock to make a significant leg up any time soon. In the next few weeks, INTC stock is likely to be range-bound, between $42.50 and $47.50.If you still believe in the long-term bull case for Intel stock, you might consider waiting for a better time to get long, such as around low-$40 levels. * 7 Stocks to Buy As They Hit 52-Week Lows Expect nearer-term trading to be choppy at best, possibly until the next quarterly report.Intel stock will need to stabilize and build a base again before a long-term sustained leg up can occur. Investors need to be careful about chasing the stock at this point. In other words, the technicals are not in the favor of long-term investors, yet. Bottom Line on INTC StockIf the Fed decreases interest rates in 2019, investor sentiment regarding the U.S. economy is likely to improve. Then infrastructure and tech spending may also increase and Intel stock is likely to benefit from these economic developments.Therefore, over the long term, I would not bet against INTC stock. In the short-term, though, the share price of the chip giant is likely to be choppy and somewhat of a mixed bag. Many investors may decide to wait to hit the buy button on INTC stock until they have seen the next earnings results in late July.I'd urge investors to keep in mind that there is a wide range of issues affecting semiconductor stocks in general and Intel in specific.If you already own Intel shares, you may either consider taking some money off the table during this market bounce or hedging your positions.As for hedging strategies, covered calls or put spreads with July 19 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility.A hedged position would give investors breathing space until the markets potentially calm down. Then, as earnings season approaches, they can decide on the best course of action for their portfolios, with less anxiety than an unhedged investor.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post Should Long-Term Investors Temper Immediate Bearishness In Intel Stock? appeared first on InvestorPlace.
Shares of Micron Technology (MU) have tumbled over 20% since the start of May on the back of renewed U.S.-China trade war fears.
Everywhere you look, the signs point to an awful rest of the year for Micron Technology (NASDAQ:MU). After a volatile second half of 2018, investors hoped that things would turn around in 2019. For a while, they did. From the January opener to April's closing session, MU stock gained nearly 36%. But as you know, that bullishness crumbled shortly thereafter.Source: Shutterstock Investors have legitimate fears that the worst isn't over for Micron stock. Indeed, we're already charting similar performances. In the first half of 2018, MU shares jumped over 26%. But in the back half, the tech firm hemorrhaged more than 40%.Both in 2018 and in the year-to-date, MU stock confronted the same negative catalyst: the ugly U.S.-China trade war. Politically, both sides are locked into a corner by their respective constituents. President Trump gravely insulted his Chinese counterparts; thus, China can't afford to look weak or even acquiescent.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 S&P 500 Dividend Stocks to Buy That Yield 4% or More But Trump has a contentious election to win in 2020. With Democrats fronting an eclectic blend of opposing voices, Trump can't afford conceding any fight, especially to the Chinese. And that just puts Micron stock in a serious bind because tensions will probably escalate for the foreseeable future.Not only that, the trade war imposes specific and direct challenges to Micron stock. For the first half of this year, sales to Chinese consumer-tech firm Huawei represented 13% of Micron's total revenue. The jury's still out on the impact on those sales from that "minor inconvenience" presented by the U.S. Department of Commerce labeling the firm a national security threat.Unfortunately, MU stock already suffered from volatile memory-chip pricing dynamics. No longer able to sell to a major partner, the situation looks bleak for the semiconductor specialist. Longer-term Benefit for MU StockHere, I'm going to take a pause and give you the obvious protective idea: if you're a serious stakeholder in Micron stock, it makes sense to shed some exposure. MU is exposed to every branch, every nuance of the trade war. In fact, the trade war was sparked by an espionage incident at Micron.The smart investor assumes turbulence, if not outright volatility. I would be quite surprised if MU stock keeps paddling and avoids serious technical pain. Plus, the equity doesn't pay a dividend. Under severe sector pressure, there's almost no point in holding your money hostage.That said, if MU stock takes the predicted tumble, I'm interested in buying shares on discount.Primarily, I've learned to avoid getting too hysterical about the ebb and flow of semiconductor stocks. Right now, the hysteria focuses on the memory chip supply glut. But next year, or some time in the future, the situation will reverse: Micron, Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) will jump on "unprecedented" demand.What sparks such a change? Nothing really, except perhaps bad timing. Here's the reality: relevant tech segments like data centers may currently suffer, but their demand will eventually rise. No matter how bad the economy gets, innovators will innovate: it's just that simple.Second and more importantly, Micron stock benefits longer term from the Trump administration's attack on Huawei. It's time to get real: China's aggressive pursuit of technology has led them to commit shocking acts of fraud and intellectual theft.I know this isn't politically correct. But please read The New York Times' description of the Chinese espionage against MU.The act is straight out of a Hollywood thriller. And thanks to Trump, that nonsense ends now. Calling Out China was Necessary for Micron Stock and TechPeople don't like the trade war because it's detrimental to their jobs and as a result, their lives. Certainly, it seems that President Trump could have handled a delicate situation better. * 10 Stocks to Buy That Could Be Takeover Targets But as I sit here now, having read the almost lurid details of Chinese high-tech espionage, the conclusion is clear: Trump had no choice but to call out China's business malpractices.Because, really, what is the alternative? Let the Chinese suck our technological acumen dry? At some point, we must recognize that our trading platform with China was never fair because frankly, they've been lying and cheating this whole time.Sure, an extended trade war will hurt both our economies. We may even fall into a recession. But finally, the U.S. government signaled that it will impose harsh consequences for intellectual and technological theft. Thus, the Chinese will think twice about future acts of corporate espionage. And that's great news for MU stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post Near-Term Pain Will Shift To Longer-Term Benefits For MU Stock Investors appeared first on InvestorPlace.
Micron's (MU) Automotive-Grade UFS portfolio will address the requirement of high-density, high-throughput and low-latency storage associated with infotainment systems in connected vehicles.
Advanced Micro Devices (AMD) added to its rapid YTD growth on Monday, reaching a 52-week high of $34.30 per share, representing YTD growth of 82.1%.
President Trump defending his decision to threaten Mexico with tariffs, saying that's what got the deal done. Yahoo Finance's Seana Smith and former trade representative under George H. W. Bush, Carla Hills discuss.