S&P 500 Futures Rise; Watch Broadcom, Qualcomm, Intel Stocks

S&P 500 futures rose modestly Friday morning, turning higher along with Dow Jones futures and Nasdaq 100 futures. JPMorgan Chase (JPM) reported better-than-expected earnings, providing a modest lift to stock futures.


The S&P 500 index, Nasdaq composite and Dow Jones industrial average rose roughly 1% Thursday, continuing to rebound.

S&P 500 Futures

S&P 500 futures rose 0.3% vs. fair value. Dow Jones futures were up 0.3%. Nasdaq 100 futures gained nearly 0.2%. However, stock market futures often don’t translate into how the S&P 500 and other major averages trade in the next session.

On Friday, JPMorgan Chase topped earnings and revenue views. Citigroup (C) and Wells Fargo (WFC) also report earnings today, kicking off first-quarter results for banking giants.

Chip Stocks To Watch

Broadcom (AVGO) popped in extended trading after the chipmaker said it would buy back up to $12 billion of its stock. Broadcom has been struggling for months, with President Trump blocking its bid for fellow Apple iPhone chipmaker Qualcomm (QCOM) on national security grounds. Beaten-down Qualcomm also was up overnight on fresh takeover buzz.

But investors may want to take a look at Intel (INTC) and Taiwan Semiconductor Manufacturing (TSM). Both are consolidating well as the stock market rallies.


Broadcom was not yet active Friday morning but jumped 4.2% in late trade. That would push the chipmaker above its 50-day moving average and closer to its 200-day line. Technically, the stock is in a consolidation going back to late November, but it hasn’t really broken a downtrend.

Shares fell late last year as Broadcom mounted a hostile takeover offer for Qualcomm. Both are Apple chipmakers. But the Trump administration blocked the deal on national security grounds, in part on fears that the penny-pinching Broadcom would cut R&D spending, imperiling the U.S. lead in wireless technology.


As for Qualcomm, shares plunged after the Broadcom bid collapsed. The stock rose 2.7% in the premarket on a report that ex-Qualcomm Chairman Paul Jacobs is assembling a group to make a go-private takeover offer.


Intel rose 3.2% to 52.72 on Thursday, the highest close since September 2000. The relative strength line is at a six-year high, signaling outperformance vs. the S&P 500. Intel still hasn’t topped a 53.78 intraday high set on March 13. If the chip giant can consolidate below that level through Friday, it will finish a five-week flat base. That would give it a 53.88 entry.

Intel tumbled on April 2 on a report that Apple is developing its own chips for Mac computers that would replace Intel processors. But the stock found support at the 50-day line and soon moved higher.

As for Apple, the stock rose 1% to 174.14, rising a little further above its 50-day line. It’s also working on a short consolidation. Its RS line is near recent highs, but hasn’t made much progress for the past 11 months.

Taiwan Semiconductor Manufacturing

Taiwan Semiconductor climbed 1.1% to 43.85 on Thursday, moving back above its 50-day moving average. The world’s largest chip foundry, Taiwan Semi is in a consolidation with a 46.67 entry.

The RS line is just below a record high.

Taiwan Semi was briefly the world’s most valuable chipmaker, but Intel has wrested the market crown in recent days.

The chip foundry reports earnings on April 19.


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Originally posted 2019-09-19 23:12:44.


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