Chip Sector Deal-making Lifts NAS Comp to Record Marks

Chip Sector Deal-making Lifts NAS Comp to Record Marks

Chip Sector Deal-making Lifts NAS Comp to Record Marks

$DIA, $SPY, $QQQ, $VXX

The NAS Comp rose to hit a new intra-day high Monday, driven by the news of a potential $103-B mega-deal in the chip sector, while gainers on the S&P and the DJIA were capped by losses in the telecom sector.

Shares of Qualcomm rose 3.1% and were the biggest boost to the tech-heavy index after Broadcom offered to buy the smartphone chip supplier in what could be the biggest merger in the tech sector. Broadcom was off 0.3%.

The deal is on the table is huge. We have not seen much in the way of deal-making this year. So this may jump-start some of the deal-making ahead of the tax policy changes.

Shares of Sprint fell as much as 14.2% to a more-than-a-year low after the wireless provider and T-Mobile called off their planned merger.

The telecom services sector led the decliners among the major S&P sectors, with a 3.04% fall. Verizon’s 4.7% fall weighed the most on the S&P and the DJIA.

US companies continue to report their quarterly earnings.

With more than 400 of S&P 500 companies reported, earnings for Q-3 are expected to have climbed 8% compared to an expectation of a 5.9% rise at the start of October, according to Thomson Reuters I/B/E/S.

Investors are taking a breather after a busy week that included the unveiling of the Republican tax overhaul bill and the nomination of Fed Governor Jerome Powell as the new Fed Chairman.

Monday the US major stock market indexes finished at: DJIA +9.23 at 23548.42, NAS Comp +22.00 at 6786.44, S&P 500 +3.29 at 2591.13

Volume: Trade on the NYSE came in at: 853-M/shares exchanged.

  • NAS Comp +24.7% YTD
  • DJIA +19.0% YTD
  • S&P 500 +15.2% YTD
  • Russell 2000 +10.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.38) Very Bullish (0.71) Bullish (0.42)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.39) Bullish (0.31) Very Bullish (0.52) Bullish (0.33)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.48) Very Bullish (0.50) Very Bullish (0.53)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Very Bearish (-0.55) Very Bearish (-0.55) Bearish (-0.42) Very Bearish (-0.67)

Have a terrific week

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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