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Dow Jones Up, These Chip Stocks Give Nasdaq Oomph; 4 Big Cap Stocks To Watch Now

The Dow Jones Industrial Average just got a small boost from its semiconductor component Intel (INTC) but chipmakers gave the Nasdaq the biggest upside result in today's stock market. The tech-centered composite rallied 0.7%, at one point rising nearly 0.9%. The S&P 500 gained less than 0.3%.

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Meanwhile, Northrop Grumman (NOC), Microsoft (MSFT), Mastercard (MA) and Veeva Systems (VEEV) deserve a close look. All four hold a spot in the IBD Big Cap 20. They also represent strong market demand for shares, excellent executive leadership and superior business fundamentals.

Northrop has formed a handle on an aircraft carrier-sized saucer base. The potential new buy point is now 330.36, 10 cents above the new handle's highest price.

Veeva is extended from its latest buy point near 124, when the enterprise software leader in the pharmaceutical markets rallied off its 10-week moving average for the second time after a January breakout from a double bottom with a 101.49 proper buy point.

Wait for a new base in Veeva to form.

Microsoft recently cleared a 131.47 entry point in a mild six-week flat base.

The 5% proper buy zone goes up to 138.04. At 138.43, the cloud computing, enterprise software and computing hardware titan is thus slightly extended.

Inside The Dow Jones: What Intel Is Up To Lately

Intel, up more than 2%, posted a fourth straight advance and is busy working on the right side of a new base. A cross back above the 50-day moving average on July 12 adds one bullish element to the chipmaking giant's price action.

However, the 39 Relative Strength Rating, plus the stock still trading more than 12% below a 52-week peak, denote Intel's lack of leadership status in the market for now.

Beyond Intel And Dow Jones: Chips Gain More Steam

On the other hand, names such as Lam Research (LRCX), KLA (KLAC), Advanced Micro Devices (AMD) and former hot Leaderboard growth stock Xilinx (XLNX) are delivering outperformance this year.

Lam, rising more than 4% to as high as 207.87, now trades just a few points below the 209.50 prior peak in its current cuplike structure. According to IBD Stock Checkup, Lam gets a respectable 90 Composite Rating on a scale of 1 (trashy) to 99 (tremendous).

AMD, a member of IBD Leaderboard, has risen as much as 16% after its second rally past a 30.05 entry point in a flat base.

That flat base formed from April 3 to June 5. AMD initially landed a spot on the Leaders list of Leaderboard on June 6 as a half-size position.

Notice on a daily chart how the stock is feeling resistance near 34-35.

Back to the general market. The Nasdaq 100 romped 0.9% higher. The Russell 2000 eased 0.2%. Innovator IBD 50 (FFTY) ETF slumped 0.4%.

On Wall Street, volume ended roughly flat vs. Friday on the Nasdaq and dipped on the NYSE, according to early data. Last week, weekly and monthly stock and index options expired on Friday, which normal boosts overall turnover volume in underlying stocks.

Meanwhile, advertising, meat, oil field services, telecom products, data storage, design software and scientific and measuring instruments industry groups paced the market's upside with gains of 1% to more than 3%.

Top Growth Stocks And Action Points

In the advertising field, Trade Desk (TTD) led the way with a gain of more than 5%, its biggest gain in a single session since June 4.

Read more about the current base and correct breakout point for the expert in omnichannel ad placement for ad buyers in this new IBD 50 Stocks To Watch feature. Trade Desk has spent considerable time on both the IBD 50 and Sector Leaders lists since its Nasdaq debut in September 2016 at 18 a share.

Apple (AAPL) rose back above the 205.18 buy point in a cup-with-handle base that formed within a much larger cup with handle. The breakout has lacked energy, however. That suggests the stock needs more time to consolidate.

The iPhone giant is not expected to increase its profits in the two final quarters of fiscal 2019, ending in September. Analysts see earnings slipping 10% to $2.10 a share in the June-ended fiscal third quarter and down 8% to $2.68 in Q4. The Refinitiv consensus forecast sees sales up slightly to $53.42 billion in Q3 and down 3% to $61.12 billion in Q4.

On The Downside

Cannabis play Innovative Industrial Properties (IIPR), which acquires facilities for growing marijuana, streaked more than 8% lower to 113.07 in volume that surged more than double usual levels.

The stock is approaching a potential test of institutional buying support at its rising 50-day moving average.

IIPR has built a series of bases since its initial breakout from a large saucer with handle and a 20.05 buy point during the week ended Dec. 15, 2017. The REIT went public on the NYSE on Dec. 1, 2016, at $20 a share.

In Other Financial Markets

Crude oil had a good day. West Texas Intermediate futures rose 1% to $56.22 a barrel. Gold edged 0.1% lower to $1,422 an ounce.

The yield on the benchmark U.S. Treasury 10-year note dropped 1 basis point to 2.04%, 3 basis points below 3-month T-bills yielding 2.07%.

Please follow Chung on Twitter at both @SaitoChung and @IBD_DChung for more on growth stocks, chart analysis, breakouts and sell signals.

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