Tech Stocks Lead Stock Market Rally; Cisco, Intel, Microsoft Pace Dow – Investor's Business Daily

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Tech stocks were back in favor Thursday after the Nasdaq composite suffered a mild distribution day Wednesday, falling 0.6% in higher volume.


Nasdaq 100 components Texas Instruments (TXN), Align Technology (ALGN) and Baidu (BIDU) showed gains of at least 3%. Top gainers in the Dow included Cisco Systems (CSCO), Intel (INTC) and Microsoft (MSFT).

The Nasdaq drew closer to its all-time of 7806 near midday Thursday, rising 0.9%. The Dow Jones industrial average added 0.7% and the S&P 500 picked up 0.6%. Small caps couldn’t keep up as the Russell 2000 eased 0.1%. Volume on the Nasdaq was tracking slightly higher than Wednesday’s levels. NYSE was on pace to be slightly lower.

Software stocks powered the Nasdaq higher. In the technology sector, the software sector arguably boasts the strong fundamentals.

Tech Stocks On The Move

In stock market results today, enterprise software stock RingCentral (RNG) was a top gainer in the MarketSmith Growth 250, rising 5%. It’s close to a double-bottom entry of 80.80. Shares were strong after Stifel Nicolaus initiated coverage with a buy rating and 100 price target.

Other top gainers in the group included Sector Leader Baozun (BZUN). The tech stock jumped 5.5% after finding support at the 50-day moving average.

Shares of Twilio (TWLO) added 3.5%. After a breakout from a bottoming base earlier this year, the stock has been getting support at the 10-week moving average as it approaches its all-time high of 70.96.

The big loser Thursday was Broadcom (AVGO). Shares cratered 15% on news it plans to acquire enterprise software giant CA Inc. (CA) for around $19 billion. Several Wall Street analysts questioned the company’s strategy of going outside the chip space to buy a low-growth software company.

The IBD 50 delivered plenty of strong performers, including Ligand Pharmaceuticals (LGND). Shares hit a new high, rising 4%. Software name Atlassian (TEAM) and Leaderboard name ZTO Express (ZTO) also outperformed with gains of more than 3%.

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