Stocks rose Wednesday amid optimism that a China-U.S. trade deal is near. The Nasdaq led, thanks to big gains from leading chip stocks.
XThe Nasdaq composite rallied 0.6% to close at a six-month high, the S&P 500 advanced 0.2%, and the Dow Jones Industrial Average climbed 0.1%. Small caps outpaced their bigger-cap peers as the Russell 2000 rose 0.5%. Volume swelled on both the NYSE and Nasdaq, according to preliminary figures.
The major indexes closed well off session highs, but came back in the last hour of the session to avoid losses or, in the Nasdaq's case, close in the lower half of the day's price range.
Intel (INTC) was one of the top gainers on the Dow Jones industrials. The chip giant gained 2.1% to a 10-month high. It remains in buy range from a 54.20 buy point of a cup with handle first cleared in March 13.
Oil drillers were the leading industry group in the stock market today. But most other oil and gas groups dipped, including U.S. explorers, international explorers and royalty trusts. West Texas Intermediate crude prices fell 0.3% to $62.39 a barrel.
Among oil ETFs, SPDR S&P Oil & Gas Exploration & Production (XOP) skidded 2% as it continues to test support along its 50-day line. Shares are 33% below their 52-week high. VanEck Vectors Oil Services (OIH) and iShares U.S. Energy (IYE) gave up 1.3% and 1.1%, respectively.
Chip Party Boosts Nasdaq
Chip and data storage stocks outperformed. Advanced Micro Devices (AMD) led the fabless chip group with an 8.5% gap-up to a six-month high. Shares cleared a 28.21 entry of a cup with handle in triple normal trade, and remain in the 5% buy zone.
Nomura Instinet began covering AMD with a buy rating and a 33 price target, as well as Intel with a buy and a 65 target.
Other chip stocks scoring big gains included STMicroelectronics (STM), ON Semiconductor (ON) and Micron Technology (MU), up more than 3% apiece.
Chip ETFs rallied: IShares PHLX Semiconductor (SOXX), VanEck Vectors Semiconductor (SMH) and SPDR S&P Semiconductor (XSD) gapped up and rose 2% or more each.
A pair of financial stocks led the IBD 50: PagSeguro Digital (PAGS) and LPL Financial (LPLA), up about 2% each. Fortinet (FTNT) also added 2% as it nears an 88.70 buy point of a cup with handle. The cybersecurity firm was featured in today's IBD 50 Stocks to Watch column.
Real estate names underperformed. Mortgage insurance provider NMI Holdings (NMIH) fell 3%, while Essential Property Realty Trust (EPRT) slid 2%. Both stocks are just off recent highs.
The Innovator IBD 50 ETF (FFTY) climbed 0.6% to knock out a fifth straight advance.
Please follow Gondo on Twitter at @IBD_NGondo for more on growth stocks, ETFs and how to invest in CAN SLIM-quality market leaders.
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