Nasdaq Stocks Lead, This Chip Leader Surges; This FANG Name Breaks Out

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The major market averages continued to move higher in early afternoon trade Wednesday, reaching fresh record highs with strong gains among leading chip stocks. Meanwhile, FANG stock Netflix ( NFLX ) broke out above a potential buy point.

[ibd-display-video id=3061062 width=50 float=left autostart=true] The tech-heavy Nasdaq led the way, padding the morning's gains and rising 0.8%.

The S&P 500 and Dow Jones industrial average rose more than 0.5% and 0.3%, respectively.

On the economic front, the Federal Reserve will release its minutes from its recent policy meeting at 2 p.m. ET.

Among the Dow Jones industrial components, Apple ( AAPL ) continued its two-day rebound after finding solid support at the 50-day line Tuesday. At 1:30 p.m. ET, shares moved up nearly 0.7% to 173.36, but still remain below a 176.34 flat-base entry. Apple attempted a breakout on Dec. 18 before stumbling.

On the downside, Intel ( INTC ) dropped nearly 4%, as an earlier rally attempt sputtered. The stock fell after the Register reported that some Intel chips have a security flaw that will force redesigns in Linux and Windows operating systems. Shares are below a 47.40 buy point. Rival Advanced Micro Devices ( AMD ) moved up 7%, but remains below its long-term 200-day moving average line.

Video streaming platform Netflix advanced more than 2% to break out above a 204.48 flat-base buy point in the stock market today . At around 1:30 p.m. ET, volume was tracking roughly 80% above average, well-above the IBD standard 40%-50% increase for a breakout day . The 5% buy range tops out at 214.70.

Meanwhile, fellow FANG plays Facebook ( FB ) and (AMZN) were rapidly approaching their own buy points. Facebook moved up 1.1% to 183.45, just 90 cents shy of a 184.35 flat-base entry. Amazon rose 0.8% to 1199 - about 1% away from a 1213.51 buy point.

Facebook is part of the growing IBD Sector Leaders list .

Leading chip stocks were sharply higher midday Wednesday after the Register's report, extending Tuesday's strong gains . Graphics-chip maker and IBD 50 name Nvidia (NVDA) surged more than 5% to get back above its 50-day line. The stock is building the right side of potential cup-shaped base. If no handle forms, the proper buy point is the left-side high of the cup plus a dime.

Airlines were under pressure in midday trade Wednesday. Delta Air Lines (DAL) declined over 2% after raising its Q4 cost forecasts . Shares are in buy range from a 54.16 cup-with-handle entry. Leaderboard member Southwest Airlines (LUV) fell 2%, but remains extended from a 59.99 buy point.

Inside the IBD 50 , Universal Display (OLED) rose over 2%, as the stock continues to find support at its 50-day line. Shares are nearing the completion of a cup-shaped base, but remain about 8% away from their 52-week high.

On the downside, Floor & Decor (FND) was on pace to extend a losing streak to three trading sessions. Shares fell 1.4% to move even further below a 46.34 cup-with-handle entry.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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