Nasdaq Slips As Chip Stocks, Airlines Weigh; Dow, S&P 500 Firm – Investor's Business Daily

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The Nasdaq composite was poised to end a three-session winning Wednesday, although the index was rallying back in afternoon trading, down just 0.3%, after falling 1.1% intraday.

X Meanwhile, after rising 0.7% early, the Dow faded to a gain of 0.2%. The S&P 500 added 0.1%, and the Russell 2000 small-cap index gave back 0.5%. Volume on the NYSE and Nasdaq was tracking higher than Tuesday’s levels in the stock market today.

Inside the Dow, shares of Apple (AAPL) lost 1.5% to 174.46 as it tests support at the 50-day moving average. Recent analyst chatter has raised concerns about iPhone X sales.

American Airlines (AAL) and Texas Instruments (TXN) weighed on the Nasdaq 100, with losses of around 7% to 8%. Other semiconductor names weighed, including Xilinx (XLNX), Microchip Technology (MCHP), Lam Research (LRCX) and Broadcom (AVGO) showing losses of 2% or more.

Lam Research was a drag on the chip-equipment group as shares lost 2% to 210.75. Lam is working on a late-stage, cup-shaped base with a 219.80 buy point.

In related news, Texas Instruments (TXN) gapped down, falling 8% to 110.20 after the company reported Q4 results. The last base breakout for the chipmaker was in mid-September over an 84.34 buy point. It was well extended in price ahead of Tuesday evening’s earnings. Even with today’s fall, the stock is still holding comfortably above the 50-day moving average, a key support level to watch.

IBD’s airline group took a hit, falling 5%, hurt by an 11% plunge for United Airlines (UAL). Shares were weak after the company reported earnings and said it planned to match fares from low-cost rivals, renewing fears of a price war that could hurt earnings. In addition, United’s plans to increase capacity over the next few years will likely pressure profit margin.

Inside the IBD 50, sellers were in Universal Display (OLED) again after a breakout from a late-stage base. The maker of organic light-emitting diodes for flat-panel displays pierced the 50-day moving average, slumping nearly 6% to 178.41. Shares are down 12% so far this week.

Alibaba (BABA) was a bright spot, rising 2% to 196.31, ahead of next week’s earnings report. It’s still in buy range after a breakout from a later-stage base with a 191.85 buy point.

The 10-year Treasury yield was up 3 basis points to 2.64%, while U.S. crude oil futures settled at $65.61 a barrel, up nearly 2%, after the EIA reported the 10th straight weekly drop in domestic crude stockpiles.

After a recent breakout, SPDR Gold Shares (GLD) added more than 1% to 129.04. April gold was trading around $1,364.40 an ounce, up 1.7%. Gold is benefiting from continued weakness in the U.S. dollar.

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