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Stock Indexes Build Gains; Intel, Cree And Ulta Beauty Shine

DATE POSTED:March 15, 2019

U.S. stock indexes built nice gains late Friday morning, as the major indexes headed toward solid weekly performances in the current stock market. Among blue chips, semiconductor maker Intel (INTC) surged 1.6%, retaking a proper buy point.

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The semiconductor sector is up almost 17% year to date, outperforming the major indexes.

The Nasdaq popped 0.8% Friday morning, while the S&P 500 and the small cap Russell 2000 added 0.4% and 0.5% respectively. Blue chips in the 30-component Dow Jones Industrial Average trailed with a 0.4% pop.

Intel cleared a 54.20 breakout point in a cup-with-handle pattern Wednesday, but volume was only average. A breakout needs at least a 40% spike in order to point to institutional activity. Intel fell back under the buy point Thursday. But the stock retook the entry Friday morning in volume 50% above average.

Intel has an IBD Composite Rating of 96, which puts it in the top 4% among stocks in IBD's database. The Composite Rating combines all five IBD ratings into a single number.

Leaders In Dow Jones YTD

So far this year, leadership in the Dow Jones is comprised of IBM (IBM), up 23%; Cisco Systems (CSCO), up 23%; Goldman Sachs (GS), up 19%; and United Technologies (UTX), up 19%.

Friday morning the chip stocks were doing very well. All three chip groups — chipmakers, chip designers and chip equipment makers — were among the day's leaders.

Chipmaker Cree (CREE) knifed more than 6% higher. The stock is about 18% above its 47.60 buy point in a good cup with handle — near the 20% to 25% profit-taking level. Cree's Jan. 15 breakout past 47.60, though, came in inadequate volume. Strong volume did not kick in until Jan. 25.

Retail And Homebuilder Stocks

In the retail space, Ulta Beauty (ULTA) gapped up as much as 10% before easing to an 8.5% gain. Volume at one point was running 925% above its average level over the past 50 sessions. Ulta reported after Thursday's close. The company grew earnings 31%, narrowly topping expectations for a 29% gain.

Homebuilder stocks advanced, but there was no news driving the gains. Among the 16 stocks in the group trading above 12, eight were up 0.8% or more.

China Trade News

On the U.S.-China trade dispute, the South China Morning Post reported that there was "concrete progress" in the talks. President Trump on Wednesday said that the results of the China trade talks will be known in three or four weeks.

The Shanghai composite rose 1% Friday and 1.75% for the week.

Among exchange traded funds, Innovator IBD 50 Fund (FFTY) was on track for a 3.5% weekly gain. Innovator Breakout Opportunities (BOUT) aimed for a 3% gain for the week.

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The post Stock Indexes Build Gains; Intel, Cree And Ulta Beauty Shine appeared first on Investor's Business Daily.