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MARKETS: DOW, S&P 500 log 7-day winning streak — YF Premium is bullish on Microchip Technology (MCHP)

Yahoo Finance's Jared Blikre joins Akiko Fujita to break down the day's price action in stocks as well as a long in Microchip Technology (MCHP), a Yahoo Finance Premium Investment Idea.

Video Transcript

AKIKO FUJITA: Welcome back to "The Final Round." I'm Akiko Fujita in for Seana Smith. Let's head to Jared Blikre now for a breakdown of today's action. And Jared, we're talking about transport stocks and those bank stocks, the big focus of the day.

JARED BLIKRE: Yeah, they come roaring back, at least over the last couple days, and we'll take a look at some of the charts here. But first the Dow. The Dow closed up over 350 points and just taking a longer term view, this is going to be year to date. Yes, you can see most of these markets, if they haven't reached their highs, their all time highs yet, closing in on them.

We still got about 6% in the Dow. NASDAQ right there, we all know that story, but that's down today. S&P 500 up a quarter of a percent, inching closer to 3,386. That's its record high over here. Russell 2000, the laggard, still has a bit more. It peaked in 2018, but it really has come alive over the last few days. And we can see what's happened over the last seven days, kind of the beginning of when this last legs started just by hitting this button here.

We see Apple's up 17% in that space, Amazon up 3%, Microsoft up 2%. But you take a look at the biggest winners overall, it's United Air. That's up 18%, then followed by Apple, then Marriott, Facebook, Ulta, T-Mobile. And you can really see this illustrated in the sector action. Industrials very strong, Boeing and Caterpillar surging today, along with energy, and then we still have tech in the fold here. A lot of that is Apple. Apple's up 5% over the last seven days, then followed by discretionary.

To the downside, we really only have healthcare here. But now I want to pivot to our Yahoo Finance Premium investment idea of the day, and this is going to be a long in Microchip. And here is-- there we go. Here's a year to date chart, still down 4%. Very close to its record highs here that it's tested several times, but Argus is saying they have a price target of 125.

That's going to be way up here, about 26% from the current price, and they are reiterating their buy along with that $125 target price saying Microchip experience solid fiscal quarter-- excuse me-- quarter one demand strength in data center computing and medical devices undercut by a sharp drop in sharp drop in demand from automotive customers. And they're also saying that we believe that Microchip will continue to focus on what it can control, which is to strengthen its position as a one stop shop in key markets. And if looking for a stop here, you got to place it at least somewhere under 98, 99, but probably more safely under some of this price action here under 90. Akiko.

AKIKO FUJITA: All right, thanks so much for that, Jared.