Stocks climbed and traded at session highs Friday afternoon, but two of the markets’ best industry groups took some heavy hits.
X The Nasdaq composite and S&P 500 climbed 0.7% and the S&P reached a record high. The Dow Jones industrial average also got to an all-time high. It added 0.5% thanks mainly to Intel (INTC), 3M (MMM)and Pfizer (PFE).
Small caps lagged, with the Russell 2000 up only 0.1%. Volume was higher on the Nasdaq and lower on the NYSE compared with the same time Thursday. Advancers and decliners were nearly even, despite the indexes’ sharp gains.
Intel soared 9% to a new high after the chipmaker sailed past earnings expectations and raised its cash dividend by 10% to $1.20 a share on an annualized basis. A number of analysts raised their price targets on Intel following the results. Blue chip 3M is extending gains from a Jan. 12 breakout after the company beat profit estimates Thursday.
Intel’s rally caused a rebound in chip stocks, which were shelled Thursday on Texas Instruments‘ (TXN) latest results.
Maxim Intergrated Products (MXIM), STMicroelectronics (STM), Lam Research (LRCX) rose in unusually high volume. All three reported earnings earlier this week. ASML (ASML) and ON Semiconductor (ON) also were all higher in unusually higher volume.
VMware (VMW) gapped up to a record high in tremendous volume. The Wall Street Journal reported that Dell Technologies (DVMT) is considering a range of strategic options, including a purchase of the rest of VMware. Dell acquired in 2016 EMC and a majority stake in VMware. Dell shares plummeted 12% in big volume.
Thor Industries (THO) plunged below its 50-day moving average in heavy trading, a break of support that results in a sell signal. Rival Winnebago (WGO) slid 8% and deepened its decline below the 50-day line, and already was in a sell situation. Thor was trying to clear a tight pattern but never rally broke out.
Northcoast Research downgraded both RV manufacturers to neutral from buy. The two stocks had been leaders in the mobile home and RV industry group, which had been in the top 20 of 197 groups for many weeks.
The casino industry group suffered a jolt after Wynn Resorts skid 7% in intense trading. A rally since the stock rose to new highs in November helped Wynn shares withstand Friday’s sell-off, and it had been a big reason the industry group had climbed to the top 10.
The Wall Street Journal reported Friday that dozens of people accuse CEO Stephen Wynn of sexual misconduct. Wynn called the accusations “preposterous.”
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