Futures for the S&P 500 index rose slightly above fair value early Tuesday morning as the major averages all set record highs on Monday, fueled by Apple ( AAPL ). Notably, chip stocks appear on the mend, with Intel ( INTC ) continuing to surge from its 50-day line, Micron Technology ( MU ) retaking that support area and KLA-Tencor ( KLAC ) breaking out to a buy zone.
[ibd-display-video id=3031068 width=50 float=left autostart=true] S&P 500 futures rose about 0.15% vs. fair value. Nasdaq futures were up a fraction. Dow futures climbed nearly 0.2%.
Chip stocks have been a key driver of bull markets for decades. Not only are they a major part of the Nasdaq and S&P 500, but they also are integral to so much of the tech sector, from PCs to data centers to smartphones such as the Apple iPhone.
(Notably, Apple rose 1.4% to 176.62 in Monday's stock market trading , just clearing a 176.34 flat-base entry . But it fell 1.1% in early Tuesday trading, back below that buy point.)
So it was not a good sign that chip stocks sold off in late November, with most chipmakers and nearly all significant chip equipment makers eventually falling below their 50-day moving averages. Chip stocks have been rallying for more than a week, but Monday was an important day.
The Philadelphia Semiconductor Index, or Philly Sox, regained its 50-day moving average for the first time since Dec. 1.
Micron Technology, which reports earnings late Tuesday , also moved above that level, jumping 3.1% to 43.71 Monday. Micron rose 1% early Tuesday.
Intel was the top-performing Dow stock for a second straight session, surging 3.8% to 46.26 after blasting 3% on Friday, rebounding from its 50-day. Volume was very strong on both days. Intel is now closing in on a 47.40 flat-base entry. Intel fell a fraction early Tuesday.
KLA-Tencor cleared its 110.11 buy point on Monday, vaulting 5.3% to 111.22. KeyBanc raised the chip equipment maker to overweight with a 134 price target. KLA-Tencor retook its 50-day line on Friday. It was not yet active Tuesday morning.
As for other notable chip plays, Nvidia ( NVDA ) popped 3.3% to 197.90, while chip gear leader ASML (ASML) advanced 1.5% to 176.34. Both are just below their 50-day moving averages. Both rose a fraction early Tuesday.
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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.
