47.21 +0.02 (0.04%)
After hours: 7:59PM EDT
|Bid||47.20 x 1000|
|Ask||47.25 x 1000|
|Day's Range||46.87 - 48.05|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.60|
|PE Ratio (TTM)||10.65|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.26 (2.66%)|
|1y Target Est||52.72|
Hey there! The birthplace of Juul (and many other players in the vape world) is closing in on an e-cigarette ban, and while Adam Sandler remains one of Netflix's big-hitters, more Stranger Things and Queer Eye episodes are incoming. Kano made what's ostensibly a Microsoft Surface For Kids. Kano is graduating from Raspberry Pi boards.
Let's see what we should expect from Micron's third quarter fiscal 2019 financial results that are due out on Tuesday, June 25.
Almost 40,000 people die each year in the United States mostly due to automotive accidents. Self-driving cars are expected to bring down the numbers.
Intel Corporation (NASDAQ:INTC) is finally enjoying a little bit of relief. Intel's stock price jumped three percent on Tuesday and has advanced nearly five points from its recent lows. But Intel stock is still in the doghouse compared to the overall market. The S&P 500 looks set to reach new all-time highs in coming weeks, and tech stocks are roaring higher as well.Source: Intel Intel's malaise is easy to understand. It is wildly out of favor at the moment, as are other leading semiconductor companies. That's because it's hard to handicap just how long the trade war will continue dragging on. And companies like Intel are highly reliant on China for product sales.Thus, it should come as no surprise that Intel's big bounce on Tuesday came with President Trump tweeting about progress in talks with China. Regardless, however, of whether a deal comes soon or still takes a while, INTC stock is a solid bargain at today's levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks Ready to Bounce on a Trade Deal Intel Asks For Huawei ReliefWhile a lot of U.S. companies have been caught in the trade war crossfire, chipmakers have suffered the worst. That's because Chinese equipment makers tend to be the leading customers for many of these firms.Reuters reported that Huawei, for example, buys $70 billion per year of components. Of this, they spend roughly $11 billion on parts from American suppliers. Intel, Qualcom (NASDAQ:QCOM), and Micron (NASDAQ:MU) lead the way in sales to Huawei. Not surprisingly, these firms have appealed directly to the government for trade war relief.Intel's executives spoke with the Commerce Department in May, and Qualcomm has been actively lobbying the government as well. If no action is taken, Huawei is expected to shrink its international smartphone shipments by around 50 percent.It's unclear if these efforts will sway President Trump and his aides, but Trump is clearly motivated by trying to make the stock market go up. Trump has complained about Fed Chair Powell's tighter monetary policy and suggested that the Dow Jones index would be 10,000 points higher if the Fed had acted appropriately.He also tends to tweet positive remarks about the economy whenever the market is sliding. With that backdrop, one has to think Trump will try to make a deal, particularly if semiconductor companies continue to slump in the interim. Intel Stock: Super CheapIn a frothy tech market, Intel remained a bastion of value in recent years. In late 2017, that suddenly changed, however. Intel's stock price soared from $35 to nearly $60 inside of a year. That ended Intel's nearly 20 year period of stagnant stock performance following the tech bust of 2001.However, Intel stock has given back much of its recent gains. With shares down more than 20% from the recent highs while earnings continue to surge, Intel is a bargain again.How much so? It's now trading at 11x trailing earnings and just 10x forward earnings. Sure, there are some reasons for concern. Normally, also-ran AMD (NASDAQ:AMD) doesn't cause Intel much trouble. AMD, for the moment, is offering one of its most compelling product line-ups in the past decade, and that has caused some concern for Intel's market share.Make no mistake though, Intel still has far more resources and a much larger research budget. They'll keep dominating the PC chip industry for years to come. Meanwhile, other growth ventures such as Intel's push into self-driving vehicle tech offer great potential in coming years. It's amazing how the market is giving so little credit to Intel's growth prospects. Just 15x forward earnings would lift Intel's stock price to $67 per share. Strong Dividend PolicyIntel stock is also a reliable source of dividend income. With bond yields cratering again, investors have been racing into defensive stocks like utilities, REITs, and consumer staples. So far, investors haven't flocked into Intel yet. But, as an effective tech utility with a great balance sheet, conservative income investors should gravitate to Intel sooner or later.At this point, Intel is paying a 2.7% dividend. That's not huge, but it's well above the S&P 500 and the 10-year treasury bond which are both at 2.0% or lower. And that tends to come with solid dividend growth as well. Intel has averaged 8%, 6%, and 8% compounded dividend growth over the past three, five, and ten years, respectively. Intel Stock VerdictNo one knows how long the trade war will continue to drag on. I'd predicted that it would wrap up by now, and I've been wrong about that. Traders don't have a good sense either, judging by how much the market swings erratically on every new tweet from Trump's twitter account.Looking at the bigger picture, however, it's kind of silly how much impact the trade war has caused for Intel's share price. The company remains one of the most dominant positions in the tech industry. And for the first time in a while, it has a robust pipeline of growth opportunities that can cause the company's overall revenues and earnings to boom again.With the stock market pushing to new highs, Intel should catch up once trade drama simmers down. I see Intel stock hitting $60 per share - just 13x forward earnings - in the coming months.At the time of this writing, Ian Bezek owned INTC and QCOM stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post Grab Intel Stock While You Can Get It at These Prices appeared first on InvestorPlace.
It was a fun ride up, but Advanced Micro Devices (NASDAQ:AMD) is already on the way back down. AMD stock ripped higher to start the month, racing from $27.50 at the start of June to $34.30 just last week.Source: AMD That's a more than 24% rally in just a few sessions! But just like that, AMD stock has given back most of those gains, falling 15% in five days. It's got a number of investors asking, "Now what?"The company announced new chips during the E3 video game conference. Additionally, it was announced that the next-gen Xbox console from Microsoft (NASDAQ:MSFT) would also carry AMD chips. There's also the mobile tie-up with Samsung (OTCMKTS:SSNLF) that sent shares ripping.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn short? There have been a lot of positive catalysts for the company lately and management has shown that it can get the job done. There have been doubts all along AMD's run from $2 in 2015 to the recent high above $34. But so far those doubters are turning out to be long-term losers. I think AMD can keep proving those doubters wrong. * 7 Value Stocks to Buy for the Second Half While it will remain a volatile stock, AMD has been one to buy on major dips. Let's take a closer look. Valuing Advanced Micro Devices StockI really like Nvidia (NASDAQ:NVDA) over the long term. The company has the best GPUs and makes top-of-the-line products. Not long after AMD introduced the Radeon RX 5700 XT and RX 5700 GPUs (its new chips to compete with Nvidia) reports emerged of Nvidia having a new set of chips too. The company's reported "Super" line of GPUs crushed the market yet again.And that's just on the GPU front. Never mind the continuous flow of other news, whether it's ray tracing or advances in autonomous driving. But is this to say that Nvidia is a better pick than AMD?Not necessarily.Over the long term, I believe NVDA and AMD will both be big winners as technology continues to improve. That said, AMD is winning the short-term battle. Over the past year, AMD is up 82%. Nvidia stock is down 44% in the same span. The year-to-date is a thumping too, with AMD up 61% to NVDA's 10% advance.So it's not just AMD's run from $2 to $20+ that's fueling these big percentage gains. AMD is here and it's here to stay.Plus, the numbers make sense.Current estimates call for revenue growth of 6.2% this year and 21% next year. That's alongside estimates for almost 40% earnings growth in 2019 and 56% growth in 2020. Not only is it impressive to see accelerating growth from 2019 to 2020, but it's even more impressive when considering the growth rates vs. its peers. Estimates for both metrics in both years top the growth rates from both NVDA and Intel (NASDAQ:INTC). Trading AMD Stock Click to EnlargeThe financials and the technological trends for AMD check out, but what does the chart look like?As we pointed out at the top of the article, we've seen a quick 15% haircut in AMD's stock price. That's giving investors an opportunity to get long this name at more advantageous prices.While AMD broke below the 20-day moving average on Monday, it quickly reclaimed it on Tuesday. Although it's off its session highs -- rallying over 5% at one point -- the move was powerful. A tweet from President Trump hinting at a possible trade-war resolution woke up the chip space. If it comes to fruition, we will see these stocks fly higher. The Bottom Line on AMD StockFor now though, AMD stock is holding its 50-day moving average and uptrend support. Back over $30 and the 20-day moving average bodes well for bulls, although volatility is almost always present in a name like this.Against the $29 breakout, I feel comfortable owning Advanced Micro Devices stock. For those that can withstand a bit more heat, they can own AMD against the rising 50-day moving average.If the markets cooperate and the narrative around trade improves rather than worsens, it's not unreasonable to believe AMD can return to $33+ in the near term. Although it's also clear that $33.50 to $34 is resistance at the moment.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA and AMD. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post AMD Stock Is Down 15% in Five Days so Now Is the Time to Buy appeared first on InvestorPlace.
Dell, HP and Microsoft, which together account for 52% of the notebooks and detachable tablets sold in the United States, said the proposed tariffs would increase the cost of laptops in the country. The move would hurt consumers and the industry, and would not address the Chinese trade practices that the Trump administration's office of the U.S. Trade Representative (USTR) seeks to remedy, the four companies said in a joint statement posted online.
President Trump’s tweet about the upcoming meeting with Chinese President Xi Jinping helped boost market sentiments yesterday. Qualcomm (QCOM), Intel (INTC), and Advanced Micro Devices (AMD) rose 4.1%, 2.7%, and 4.3%, respectively.
When Donald Trump was elected as the US President in 2016, we saw a sharp rally in some stocks, especially in the metals and mining space. Trump’s pro-growth policies and trillion-dollar infrastructure plans were expected to lift US metal consumption.
Last fall, Nvidia (NASDAQ:NVDA) was trading at almost $300. Today, NVDA stock is trading at half that amount.Source: Shutterstock My InvestorPlace colleague Tom Taulli recently reminded investors that despite good things happening at Nvidia with its RTX gaming chip, the oversupply of chips makes NVDA stock a risky buy at this point.It's hard to argue with Tom's logic.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven China accounted for 24% of Nvidia's revenue in the last year, a prolonged trade war with the U.S. would decimate the company's revenues, profits, and of course, free cash flow. From that perspective, Nvidia is a falling knife you likely don't want to catch.However, assuming the trade dispute gets solved by the end of 2019, Nvidia's current free cash flow generation makes its an interesting value proposition. Here's why: NVDA Free Cash Flow GenerationIn the latest fiscal year ending January 31, 2019, Nvidia had $3.14 billion in free cash flow, which accounts for 27% of its annual revenue. While its free cash flow margin was down 300 basis points from fiscal 2018, it's still significantly higher than many of its peers. * 7 Value Stocks to Buy for the Second Half For example, Intel (NASDAQ:INTC) had $14.3 billion in free cash flow in fiscal 2018; that was 20.2% of its annual revenue. A year earlier, Intel's free cash flow was $10.3 billion or 16.5% of its annual revenue.A skeptical person might note that Intel's free cash flow as a percentage of sales increased substantially between fiscal 2017 and 2018, while Nvidia's decreased over the same period. However, Intel is significantly larger than Nvidia with six times as much revenue. It ought to be converting more of its revenue to free cash flow given the economies of scale.But it isn't.For this reason, along with the growth runway Nvidia has with the cloud and artificial intelligence, it's understandable that investors are willing to pay almost 30 times cash flow for NVDA stock compared to eight times cash flow for Intel.Nvidia's current free cash flow yield is 3.8%, almost double what it was a year earlier. And while it's not 8%, what investors consider a true value stock, its slide over the past year has made the Nvidia stock price a much better buy.Within 17% of a 52-week low, it's getting closer to where it traded in June 2017.In those two years, however, Nvidia has become a much more diversified business, which means to buy on the dip today is safer than if you had done so in 2017. The Bottom Line on NVDA StockI continue to like Nvidia because of its free cash flow. Companies that efficiently convert revenues to free cash flow tend to perform better over the long haul.InvestorPlace contributor Luke Lango recently argued that Nvidia is a victim of semiconductor-market inefficiencies that should resolve themselves."Right now, we are going through one of those down eras. Semiconductor demand is waning in the face of escalating global economic uncertainty and trade tensions. At the same time, in anticipation of massive secular demand in industries like Internet of Things and artificial intelligence, supply in the semi market has expanded tremendously over the past few years," Lango stated June 11.More importantly, Lango suggested, is that Nvidia's revenues and margins were moving ahead of their long-term trend-lines, a sign that 2021 could be the year the chip maker's growth reignites.If you're an aggressive investor and aren't afraid of a little volatility, I would buy NVDA at current prices, saving a little if it moves lower to test its 52-week low of $124.46.At the time of this writing Will Ashworth 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 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Free Cash Flow Makes Nvidia Stock a Great Buy on the Dip appeared first on InvestorPlace.
Chipmaker Advanced Micro Devices stock is on the rise despite slowing sales and earnings recently. Here is what the fundamentals and technical analysis say about buying AMD stock now.
Broadcom (AVGO) slashed its full-year fiscal 2019 revenue guidance for its Semiconductor Solutions segment by 10%, or $2 billion, dampening hopes of a revival in the second half. However, the company experienced strong demand in its networking business and expects revenue in this segment to grow in the double digits in fiscal 2019.
Apple (AAPL) seems to be exploring options to partially move its iPhone and other product manufacturing out of China. Apple wants to move ~15%–30% of its production out of China.
Nvidia (NASDAQ:NVDA) has struggled since tech stocks crashed last fall. Even after a modest recovery, NVDA trades about 50% below its 52-week high. But it remains the leading graphics chips company, and its position in numerous emerging industries should enable Nvidia stock price to rise over the long-term.Unfortunately, external concerns have hampered the performance of Nvidia. As a result, without a meaningful catalyst, Nvidia stock will generate neither excitement nor significant gains. * 7 Value Stocks to Buy for the Second Half NVDA Maintains Its lead in Graphics Processing Units (GPUs)Nvidia's situation has not changed significantly since my last article on Nvidia stock. The Nvidia stock price remains near $150 per share as the trade war and the chip glut weigh on the stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite this stagnation, NVDA's outlook appears to be positive. It remains ahead of AMD (NASDAQ:AMD) due to its continued innovation. AMD may have released GPUs that will enable it to compete for the higher ranges of the gaming market. However, as another InvestorPlace columnist,. Bret Kenwell, pointed out, Nvidia's release of its line of SUPER series GPUs will keep it ahead in this market, assuming that the reports about the upcoming GPUs prove to be true. And since NVDA still obtains more revenue from gaming than from any other vertical market, the new GPUs could meaningfully impact Nvidia stock.Moreover, bitcoin continues to recover, and it has moved above $9,000. For this reason, some have speculated that Nvidia can regain some of the crypto-mining revenue it lost last year after bitcoin crashed. NVDA Has Become BoringAll of this amounts to good news for NVDA. Still, none of it provides a catalyst that will move Nvidia stock price higher in the near-term. Moreover, instead of acting like a "hot stock," NVDA has become as dull as a stereotypical Dow Jones Industrial Average equity.Nvidia's work in the cloud, data centers, artificial intelligence (AI), virtual reality (VR) and self-driving cars took Nvidia stock price to almost $300 per share last year. However, in the first quarter of this year, gaming and auto were the company's only businesses whose revenue climbed versus the previous quarter. .So it's not surprising that NVDA's Q1 revenue tumbled 31% year-over-year.And since Nvidia stock trades at a price-earnings ratio of about 27.4, its Q1 performance won't motivate investors to buy NVDA. That valuation is somewhat below the five-year average for the stock. However, most would not consider that multiple cheap, given NVDA's declining revenue and profit. What Approach Should Investors Take With Nvidia Stock?So while NVDA remains a solid performer amid a chip glut, there are few reasons for investors to buy or sell Nvidia stock. So what could motivate more investors to buy NVDA?A resolution of the trade war with China would do the trick. China has long served as a significant revenue source for NVDA. In fiscal 2019, China made up $2.8 billion of the company's $11.72 billion in total revenues. Only Taiwan was a bigger geographic market for NVDA. Nvidia stock has little room to move higher as long as U.S.-China relations remain in jeopardy.Also, widening adoption of cloud computing, VR, or self-driving cars would likely push NVDA higher, as the company could sell many more chips if any of those technologies proliferate. Until such events occur, investors have few reasons to take any action on Nvidia stock. The Bottom Line on NvidiaNvidia will remain a boring stock until the trade war ends or technologies such as AI or self-driving cars become much more popular. Nvidia continues to maintain its lead in graphics chips, and its innovations appear poised to make it a leader in key industries of the future. Also, with bitcoin higher, NVDA may even regain some of its lost crypto-mining business.However, its revenue growth may not accelerate as long as the trade war with China continues. Moreover, many emerging industries powered by Nvidia's chips, such as AI, VR, self-driving cars, have not yet realized their potential. Until at least one of these factors changes, NVDA stock will remain dead money.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Nvidia Stock Is Supposed to Be Hot, But It's Leaving Investors Cold appeared first on InvestorPlace.
US markets rose sharply yesterday, and the NASDAQ Composite (QQQ) rose 1.4%. Semiconductor stocks were among the biggest gainers. NVIDIA (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Intel (INTC) rose 5.4%, 4.3%, 4.5%, and 2.7%, respectively.
NVIDIA's (NVDA) partnership with Volvo will help it to expand presence, and improve competitive prowess against Intel, Qualcomm and DXC in the autonomous vehicle market.
Qualcomm (NASDAQ:QCOM), one of the largest U.S. semiconductor makers, has been on a roller coaster ride this year. Following some favorable legal wranglings against Apple (NASDAQ:AAPL), QCOM stock surged in April before giving back all those gains in May.Source: Karlis Dambrans via FlickrThat retreats came as Qualcomm and some rival domestic semiconductor manufacturers found themselves front and center in the U.S.-China trade imbroglio. Over the past month, Qualcomm stock is off by 16.54%, a loss that is more than 1,000 basis points worse than the decline by the widely followed PHLX Semiconductor index over the same period.Many of the recent ills endured by Qualcomm stock are attributable to the company's relationship with the controversial Chinese company Huawei, which was recently blacklisted by U.S. regulators.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"While coverage surrounding the U.S. government's Huawei ban has focused primarily on how the Chinese tech giant will be affected, it's worth remembering that the company's U.S. suppliers also stand to lose a great deal of money in the fallout of President Trump's executive order," reported TechRadar. * 7 Top-Rated Biotech Stocks to Invest In Today Coming down hard on a Chinese company can make for good politics, but there are consequences for American companies, too, particularly in the technology sector. In fact, Qualcomm and rival Intel (NASDAQ:INTC) are among the firms lobbying hard against the Huawei ban.Other Qualcomm rivals, notably Broadcom (NASDAQ:AVGO), are delivering glum earnings or revenue guidance, citing the China trade war. Issues Besides ChinaMay was a bad month for QCOM stock for reasons besides China. Actually, trade tensions were more like another sour ingredient to an already-toxic cocktail that was Qualcomm stock last month. The shares were hit by a double-digit loss on May 24 after U.S. District Judge Lucy Koh ruled in favor of the Federal Trade Commission (FTC) in an antitrust action it brought against Qualcomm.The judge ruled the company used its strong position in the wireless chip market to charge excessive royalties for its patents, unlawfully hurting competition, Barron's reported.Of course, Qualcomm is appealing that ruling to the U.S. Court of Appeals for the 9th Circuit, representing yet another legal overhang for QCOM stock and that means uncertainty and there's nothing that markets hate more than uncertainty."We fully expect Qualcomm to appeal this ruling and try to get the injunctive remedies put off," said Morningstar analysts. "We don't believe Qualcomm's recent licensing agreement with Apple is at risk, yet. That said, we are lowering our fair value estimate for narrow-moat Qualcomm from $80 to $72 and increasing our uncertainty rating to very high as we believe there is too much up in the air related to this ruling and the ongoing Huawei-related issues."Swap "ucertainty" for "lack of clarity," and that's how other analysts are viewing Qualcomm stock right following the company's legal scrap with the FTC. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 "What is clear is that this decision was entirely unexpected and the impact on the business model could be material, assuming QCOM loses on appeal," said Evercore ISI analyst C.J. Muse. "No changes to our rating and price target now as we await more clarity, but there is no doubt this decision will drive shares lower and potentially keep investors (again) on the sidelines until there is more clarity to the certainty of QCOM's royalty and chipset businesses. We will come back as soon as we have more clarity." Bottom Line on QCOM Stock: A Lot Of RisksOn a technical basis, QCOM stock has support at $69, but a violation of that area could result in a decline down to the 200-day moving average more than 9% away.The company's next earnings report is due on July 24 and analysts are expecting Qualcomm to post earnings of 62 cents a share. Should negative guidance, a la Broadcom, emerge, QCOM stock would likely be punished.Additionally, Qualcomm stock trades well below the average analyst price target of almost $89, meaning that if the sell-side starts revising that forecast down, with several negative revisions in a condensed period of time, the shares will sag.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post For All Of The Problems Facing Qualcomm Stock, China Looms Largest appeared first on InvestorPlace.
Volvo provided the latest evidence on Tuesday, when it announced that it plans to use Nvidia's Drive autonomous driving hardware/software platform within commercial vehicles such as trucks, buses and construction vehicles. The Swedish automaker says it will use Nvidia's powerful Drive AGX Pegasus computing board, declare to be capable of handling 320 trillion deep learning operations per second, as well as its Drive AV software stack and Drive Constellation driving simulation system.
Recently, there has been significant turmoil surrounding the electronics component sector, specifically in wireless equipment and semiconductors. This was mostly due to the US blacklist of Huawei in May, coupled with increased US-China trade war tensions.
All it took was a little love on the trade front to send stocks surging on Tuesday. The Nasdaq Composite and the S&P 500 rallied 1.39% and 0.97%, respectively, with the latter closing in on another record in advance of the Federal Reserve meeting. The Dow Jones Industrial Average, meanwhile, added a respectable 1.35%.Source: Shutterstock Finally, a tweet from President Trump involving trade talks proved efficacious for stocks. In a tweet out earlier today, Trump said he and Chinese President X had a "very good" conversation via telephone and that the two are "extended meeting next week at the G-20 in Japan." Trump added that representatives from both sides will hold talks prior to the two leaders getting together.The stage is set for stocks to continue climbing, particularly if the Federal Reserve cooperates. The U.S. central bank commenced its two-day meeting today. While it appears unlikely that the Fed will announce an interest rate cut tomorrow, what will captivate investors' is language that could imply a rate cut is imminent, perhaps as soon as July.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThose are the types of headlines that riskier assets love. In late trading, more than two-thirds of the Dow's 30 components were in the green, but a few were sporting particularly robust gains. Let's look at a few here. Boeing (BA)Boeing (NYSE:BA), a frequent guest in this space and the Dow's largest component, surged 5.50% today, an encouraging sign because it is good to see the big kahuna rally in a price-weighted index like the Dow. Yesterday, it was noted that Boeing was making some bullish predictions at the Paris Airshow. * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer That theme continued today when the company said that British airline group IAG inked a deal to buy 200 of Boeing's 737 max jets. Yes, that's the same 737 max passenger jet that has recently caused Boeing investors so much consternation. IAG owns British Airways, Aer Lingus and Spain's Iberia, among other European carriers. The deal could be worth up to $24 billion. 3M (MMM)Industrial conglomerate 3M Co. (NYSE:MMM) is the epitome of a cyclical stock that has been battered by the trade war. Shares of 3M are saddled with a second-quarter loss of 20% and the stock has been careening lower since late April.3M, which has a dividend yield of 3.45%, got some relief today, climbing 2.98%. As is the case with Boeing, 3M's rise is particularly good news for the price-weighted Dow because Minnesota-based 3M is the eighth-largest component in the price-weighted index."We believe the market has overreacted to two key variables: 1) 3M's latest guidance cut; and 2) 3M's potential PFAS litigation exposure," said Morningstar in a recent note."Since Mike Roman has been at the helm for nearly a year, 3M has been forced to cut guidance on five different occasions. That said, 3M consists of short-cycle businesses that are notoriously hard to predict. Most of the slowdown has come from three distinct end markets which make up over 30% of its revenue base, which include automotive, electronics, and China. And the company simply missed reacting to slowing demand." Intel (INTC)As has been widely documented, semiconductor stocks have been primary victims of the trade controversy. What was once one of the year's best-performing groups rapidly turned south in May, but the anti-semiconductor trade probably got too crowded too quickly, giving way to a snap-back rally.That rally may have started today and Intel Corp. (NASDAQ:INTC) got in on the act. At one point Tuesday, eight of the 10 best-performing stocks in the S&P 500 on a percentage basis were chip stocks.After gaining 2.74%, Intel was the Dow's best-performing technology stock today. Nike (NKE)Athletic apparel and footwear giant NIKE Inc. (NYSEARCA:NKE) gained 2.82% today, probably due in large part to the encouraging news on the trade front. The company is heavily dependent on foreign labor and was previously warned the White House that tariffs on its exports to China would be "catastrophic" for its business. With those factors in mind, it probably was not surprising to see NIKE rank as the best-performing consumer discretionary stock in the Dow today.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Dow Jones Today: Why the Best Stocks in the DJIA Are Rallying appeared first on InvestorPlace.
DEEP DIVE Semiconductor stocks led a broad U.S. rally on Tuesday, as investors cheered both the latest comments about economic stimulus from European Central Bank President Mario Draghi and President Donald Trump’s tweet about his talks with China’s leader, and as the Federal Open Market Committee began its two-day policy meeting.
(Bloomberg) -- Shares of semiconductor companies rallied on Tuesday as optimism that trade tensions between the U.S. and China could be easing pushed investors to look past a growing consensus that an industry rebound is unlikely to occur in the second half of the year.The Philadelphia semiconductor index advanced as much as 5%, compared with a 1.4% increase in the S&P 500 Index. Among notable gainers, Nvidia Corp. rose 6.8% while Micron Technology Inc. jumped 6.8% and Western Digital Corp. added 6.4%. Texas Instruments Inc. gained 4.2% while Intel Corp. rose 4%.The advance came after President Donald Trump said he had a “very good” phone conversation with Chinese President Xi Jinping and that he would hold an “extended meeting” with him at the G-20 meeting. Trump had previously threatened to raise tariffs if Xi didn’t sit with him at next week’s meeting in Japan.Chipmakers have been highly correlated to the trade issue, as the companies derive a hefty percentage of their revenue from China. The country is also a key part of their supply chains. Recently, semiconductor volatility rose after the Trump administration blacklisted Huawei, a major consumer to a number of semiconductor companies. Last week, Broadcom Inc. cut its full-year sales forecast because of trade risks and its Huawei exposure.“Huawei casts a large shadow,” Stifel analysts wrote on Tuesday. “There is no getting around its significance.” Analyst Brian Chin lowered his estimates for a number of semiconductor companies for the second half of the year, saying that the industry’s “malaise” in May was “now too acute to ignore.”That view was echoed by analysts at KeyBanc Capital Markets in a report dated June 17. The firm wrote that “the recent U.S./China trade war escalation, including the Huawei ban, has dashed hopes for a 2H recovery for broad-based semiconductors.” Analyst Weston Twigg added that a trip to Asia “left us more cautious” on the industry, and that there was an “increased risk to forward estimates” as the trade dispute “has led to a meaningful decline in bookings.”Deutsche Bank analysts recently returned from an Asia trip of their own, emerging “more cautious on the semiconductor and semicap sectors” as a result, “especially given that the often promised H2 rebound is looking increasingly optimistic.”Analyst Rob Sanders wrote that trade tensions were “significantly elevating uncertainty surrounding near- and mid-term business conditions,” and that “in most instances, this uncertainty is acting as a headwind to demand.”The escalation in trade-related tensions came at a time when the industry has already been struggling with weak demand and high inventory levels. According to the Semiconductor Industry Association, total semiconductor sales sank 17.7% in April, its most recent month of data.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Advanced Micro Devices Inc. shot up 5.6% in very active trading Tuesday morning, putting them on track for their first gain in six days amid a broad rally in chip stocks. Volume of 37.4 million shares made AMD's stock the most actively traded on major U.S. exchanges. The stock had tumbled 12% over a five-session losing streak through Monday. AMD's rally comes as the PHLX Semiconductor Index climbed 4.6%, with all 30 components gaining ground, led by the 6.5% jump in Micron Technology Inc. shares. Meanwhile, chipmaker Intel Corp.'s stock rallied 3.7% to pace the Dow Jones Industrial Average's gainers.