Stocks Rise; Chips In Focus, But This Other Sector Is Making Breakouts | Stock News & Stock Market Analysis

Stocks were modestly higher Monday afternoon, as semiconductor stocks made headlines, but energy shares also performed well.

XAutoplay: On | OffThe Nasdaq climbed 0.3%, in large part because Broadcom‘s (AVGO) $130 billion bid for Qualcomm (QCOM) sparked a rally in chip stocks. IBD’s chipmaker and chip-design industry groups were up 1.4% and 2.2%, but the chip-equipment group was slightly lower.

The S&P 500 and the Dow Jones industrial average were up 0.1%.  Verizon (VZ) was a drag on the Dow, gapping down about 4.5% in large volume. The sell-off followed news that Sprint (S) and T-Mobile US (TMUS) ended merger talks. Investors worry the collapse will re-intensify wireless competition.

The Russell 2000 added 0.3%, mirroring the Nasdaq’s performance in afternoon trading.

Other movers included American Tower Realty (AMT), the latest in a series of breakouts among real estate investment trusts. American Tower, which owns cellular towers for wireless phone use and broadcasting companies, gapped up above the 148.81 buy point in big volume.

While Broadcom (which reversed lower) and Qualcomm (well off session highs) dominated news in the semiconductor space, other chip stocks were acting bullishly.

Marvell Technology (MRVL) surged 9%, rising from support at the 50-day moving average in heavy trading, and Cavium (CAVM) broke out past the 70.18 buy point of a cup-with-handle base in tremendous turnover. The Wall Street Journal reported Friday that Marvell is in talks to acquire Cavium.

Kulicke & Soffa (KLIC) broke out of an undefined pattern, clearing a 23.10 buy point in heavy trading. The Singapore-based chip-equipment company will report fiscal-quarter results Nov. 14 before the market opens.

But it was the energy sector that led the market, with drilling, exploration and other companies making strong headway in today’s trading. Oil prices hit the highest level in more than two years, with WTI crude oil futures for December delivery up 2.5% to $57.06 a barrel.

Matador Resources (MTDR) broke out of a cup-with-handle base just hours before it announces its third-quarter earnings. The stock climbed above the 27.98 buy point but volume was unimpressive. Analysts expect the Dallas-based oil & gas exploration company to earn 10 cents a share, an increase of 67% from the year-ago quarter.

Eni (E) was another oil stock breaking out. The Italy-based oil company rose past the 33.60 buy point of a cup-with-handle base in hefty volume. The government of Italy may sell part of its 4.3% stake in Eni plus its holding in air-traffic controller Enav to reduce debt, Bloomberg reported, citing sources familiar with the matter.

Cenovus Energy (CVE) climbed above the 10.79 entry of a flat base that developed within a larger consolidation.


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Originally posted 2017-11-06 18:45:46.


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