Tech Stocks Lead, While Big Banks Fall Ahead Of Fed's Rate Decision

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The major market averages were modestly higher in early morning trade Wednesday, ahead of the Federal Reserve's interest rate decision to be announced at 2 p.m. ET. The Fed is widely expected to raise rates by a quarter percentage point.

[ibd-display-video id=3020793 width=50 float=left autostart=true] The tech-heavy Nasdaq and the Dow Jones industrial average each moved up 0.3%, while the and S&P 500 held a 0.2% gain. The Dow and S&P 500 hit fresh record highs for a second straight day.

Among the Dow Jones industrial components, Apple ( AAPL ) advanced 0.8%. The iPhonemaker announced a $390 million investment in lasermaker Finisar ( FNSR ) at the expense of rival Lumentum ( LITE ). The lasers can be used in the iPhone's augmented reality applications. Shares of Finisar surged 28%, while Lumentum fell 9%.

Shares of Apple were extended from a cup with handle's 160.97 buy point. Finisar was back above its 50- and 200-day lines, while Lumentum hit a new seven-month low.

On the downside, energy giant Chevron ( CVX ) fell 0.3% to about 1% below a 120.99 flat-base entry after last week's breakout.

Leading financials were mostly lower in the stock market today , but declines were mild. Global investment bank Bank of America ( BAC ) fell 0.4%. Shares are extended after a 50-day test in mid-November.

Micron Technology (MU) rose 2.3% after being called a 'favored' name for 2018 by Susquehanna Financial Group. The stock had a big move from a 32.45 double-bottom entry until it sold off in late November. Shares are under the 50-day line, about 15% off their high.

PayPal (PYPL) moved up nearly 2%, as it continues to rebound from its 50-day line. The stock was one of the top stocks of 2017, rising 43% from a 55.24 flat-base entry and 80% from a 43.90 cup-with-handle buy point.

Tesla (TSLA) was on pace to snap a three-day winning streak, falling 1%. Shares are building the right side of a potential base, but are still about 13% off their 52-week high. The stock reclaimed its 50- and 200-day lines Monday in heavy volume.

Inside the IBD 50 , Red Hat (RHT) advanced 1.4% to continue its recovery from the 50-day line.

On the downside, Charles Schwab (SCHW) fell 1%. The leading brokerage firm is still about 10% above a 46.31 flat-base 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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