US Stock Rise in Strong Rally, Chipmakers Lead

US Stock Rise in Strong Rally, Chipmakers Lead

US Stock Rise in Strong Rally, Chipmakers Lead

$DIA, $SPY, $QQQ, $RUTX, $VXX

Tuesday, the major US stock market indexes rose more than 1%, driven by strong gainers for chip and transport stocks, as investors took advantage of cheaper prices following the recent pullback.

All 11 S&P 500 sectors ended in the Green a day after a volatile session that saw the DJIA swing about 900 points on the day.

The Philadelphia semiconductor index rose 4.2%, its biggest 1-day percentage gainer since March. Intel surged 5.2% and gave the biggest single-stock boost to the S&P 500.

Chip stocks also gained following a brokerage upgrade of Nvidia shares and a better-than-expected report from chip-gear maker KLA-Tencor. Nvidia shares jumped 9.4% and KLA-Tencor shares rose 7.6%.

Monday, chip stocks dropped broadly on renewed concerns about US-China trade tensions seemed to spark the declines.

The Dow Jones Transport Average jumped 2.8%, its biggest 1-day rise in about a year. A drop in Crude Oil prices have boosted closely watched transport shares.

Market volatility has spiked in recent weeks, stemming from higher US interest rates and worries about economic growth peaking and trade tensions.

Investors and traders are cautious about the uncertainty surrounding the midterm Congressional elections just a week away.

S&P 500 companies are on pace to have posted a 25.3% rise in Q-3 earnings with more than 50% of the components having reported, according to I/B/E/S data from Refinitiv.

Despite the big profit increase, some high-profile companies have issued disappointing reports.

Tuesday, General Electric (NYSE:GE) shares tumbled 8.8% after the conglomerate drastically reduced its dividend and said it faced a deeper accounting probe by the regulators.

Under Armour Inc’s shares surged 24.7% after the sportswear maker’s upbeat Quarterly earnings and full-year profit forecast.

Tuesday, the major US stock market indexes finished at: DJIA +431.72 at 24874.64, NAS Comp +111.36 at 7161.84, S&P 500 +41.38 at 2682.77

Volume: About 9.6-B shares changed hands on US exchanges, above the 8.6-B daily average over the last 20 sessions.

Advancers outnumbered decliners on the NYSE by a 2.26-to-1 ratio, and on the NAS Comp, a 2.09-to-1 ratio favored advancers.

The S&P 500 posted 13 new 52-week highs and 25 new lows; the NAS recorded 18 new highs and 202 new lows.

  • NAS Comp +3.7% YTD
  • DJIA+0.6% YTD
  • S&P 500 +0.3% YTD
  • Russell 2000 -1.9% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
30 October 2018 QQQ 165.32 Bearish (-0.34) 160.00 166.85
30 October 2018 DIA 247.55 Neutral (-0.16) 247.45 251.01
30 October 2018 SPY 267.08 Bearish (-0.41) 260.00 267.17

Stay tuned…

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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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