FAANG stocks helped give the Nasdaq composite a positive July start in stocks today, as the tech-heavy index rallied nearly 0.8% on Monday. Meanwhile, Intel (INTC) rose for a third straight day, rising nearly 1%. Watch to see if it holds above the key 200-day moving average.
The chipmaking giant is currently forming a new base. At 50.20, shares are just 13% below the 52-week peak of 57.60.
The S&P 500 gained 0.3% while the Dow Jones industrial average trailed. Hurt by five of its 30 components falling 1 point or more, the Dow industrials gained less than 0.2%.
Volume fell on both exchanges, according to early data.
The trading session Tuesday is expected to be super-light, barring any big breaking news. The Nasdaq and NYSE will close at 1 p.m. ET ahead of Wednesday’s July 4th holiday.
Apple (AAPL) did better than the Nasdaq composite. The iPhone and iPad giant rallied 1.1% to 187.18 in quiet trade. Its gain from a 179.04 buy point in a double bottom is now at 4.5%. Thus, the stock is still within the 5% buy zone.
As seen in a daily chart, Apple shares have been testing institutional buying support at the 50-day moving average for a sixth straight session.
Apple also stands more than 58% higher after the megacap tech broke out of a first-stage cup with handle on Jan. 6, 2017.
The correct buy point at the time was 118.12, 10 cents above the handle’s highest price.
Strength In Software
Elsewhere in the market, some software plays rallied sharply.
VMware (VMW), a subsidiary of Dell Technologies (DVMT), gapped up and roared 10% ahead following news that Dell decided to offer a new class of publicly listed common shares. Meanwhile, VMware’s board voted to declare an $11 billion cash dividend, pro rata, to all VMware shareholders.
The special dividend depends on completion of the Dell stock transaction.