Stock Market News: Xilinx, Lam Research Lead Monster Chip Rally

In stock market news Thursday, a 6% surge in the Philadelphia Semiconductor Index helped the Nasdaq composite outperform. But the Nasdaq could only manage a 0.4% gain in afternoon trading despite strong earnings moves from Xilinx (XLNX), Lam Research (LRCX) and Texas Instruments (TXN). In other stock market news, Wall Street like the look of Union Pacific‘s (UNP) earnings report, sending shares higher by more than 2%.




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In afternoon trading the Dow Jones Industrial Average was down 0.4% and the S&P 500 eased 0.2%. The Russell 2000 small-cap indexes outperformed, rising 0.5%. (For updates on this story and other market coverage, visit the Stock Market Today page.)

In stock market news today, shares of Leaderboard name Xilinx broke out of a cup-shaped base. Shares were up nearly 18%. In a case like this when a stock gaps up powerfully out of a base, it’s OK to buy as close to the open price (98.10) as possible. Buying gaps up in price is counterintuitive, but powerful moves like this can often yield additional gains.

Shares of Union Pacific jumped nearly 4% to 159.83 as the stock tries to clear resistance around the 160 level. Earnings and sales were better than expected, and the company forecast increased operating margin this year. The stock gapped up powerfully on Jan. 8 after the company named Jim Vena as its chief operating officer. Vena was formerly an executive with Canadian National Railway (CNI) and is known as a turnaround expert.

Stock Market News: Fabrinet Recovers

Inside the MarketSmith Growth 250, Fabrinet (FN) bounced back in fine fashion after two straight losses. It fell 5% below a 54.80 buy point Wednesday, but the stock reclaimed the entry with conviction Thursday, soaring nearly 8% to 56.10.

In other stock market news, IBD 50 member Intel (INTC) was a top gainer ahead of its earnings report after the close. The chipmaker climbed above its 200-day moving average, rising nearly 4% to 49.75, but it still needs to get over its early December high of 50.49.

Also watch for reports from Intuitive Surgical (ISRG), Norfolk Southern (NSC) and Starbucks (SBUX) after the close.

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