Tag Archives: INTC

Stocks Worth $2.2 Trillion Are “In Play”; Here’s What to Do

It’s rare that so many of the market’s biggest, most powerful companies get swept up in the proverbial whirlwind, but that’s what’s happening right now.

Headline risk is off the charts – and all over the place: Trump is gunning for Amazon.com Inc. (Nasdaq: AMZN).

Privacy controversy still swirls around Facebook Inc. (Nasdaq: FB), where CEO Mark Zuckerberg is publicly trading barbs with Apple Inc. (Nasdaq: AAPL) CEO Tim Cook – who is in turn said to be considering getting Intel Corp. (Nasdaq: INTC) chips out of his Mac machines by 2020.

And all this while Elon Musk’s crowd favorite Tesla Inc. (Nasdaq: TSLA) is burning cash at alarming rates.

Volatility rules right now. Like the saying goes, these are “Interesting times.”

To help make sense of where these stocks – held by millions of investors – stand in the big picture, Editor Mahdis Marzooghian sat down with our Technical Trading Specialist, D.R. Barton, Jr.

No one reads a stock like D.R. – he’s fresh from recommending the latest triple-digit (101.5%) gainer for his subscribers in the choppiest market in years.

Buy… hold… or flat-out dump: Here’s exactly what D.R. thinks of these marquee stocks right now…

Join the conversation. Click here to jump to comments…

Intel Begins 2018 as the Worst Performing DJIA Stock

Intel Corp. (NASDAQ: INTC) got some bad news last week regarding a security flaw in the chips it has been producing for at least the past two decades. And while the company’s stock has recovered somewhat since the news broke, it closed out the first week of the year as the worst performer among the 30 stocks that comprise the Dow Jones Industrial Average (DJIA), with a share price loss of 3.08%.

The second-worst performer for 2018 among the Dow 30 is Travelers Co. Inc. (NYSE: TRV), which is down 2.57% in the first week of the year, followed by Verizon Communications Inc. (NYSE: VZ), down 0.85%, and Procter & Gamble Co. (NYSE: PG), down 0.7%. These are the only four stocks that posted share price losses last week.

The Dow posted an all-time high of 25,299.79 on Friday and closed the week at 25,295.87. The index gained about 1.9% in the first week of the year.

When every one of a company’s principal product for the past 20 or so years is revealed to have a major flaw, it’s only realistic to expect the stock’s price to tumble. When word got out last Tuesday that Intel’s x86 processors had two gaping holes that could allow cybercrooks to steal personal data from any machine, the share price plunged more than 5%.

It turned out that chips based on designs from other semiconductor makers like ARM and AMD also had one of the same flaws, dubbed Meltdown and Spectre. The San Jose Mercury News explains:

Meltdown is exclusive on Intel chips and allows hackers to bypass the hardware barrier between running applications and the computer’s memory, thereby allowing hackers access to the latter. Spectre affects chips made by Intel, AMD and ARM and tricks applications to hand over secret information.

Microsoft already has issued a software patch, and Apple and Google are working on fixes for their products, including smartphones and tablets.

Intel shares dropped to a low of $42.69 on Thursday before recovering to close the week at $44.74. From Tuesday’s closing price of $46.85, the shares lost more than $2.00 by the end of the week. The stock’s 52-week range is $33.23 to $47.64, and the 12-month consensus price target is $47.08. The low target is $32 and the high target is $58.

ALSO READ: General Electric From Worst to First Among DJIA Stocks

Mondays Vital Data: Apple, Micron and General Electric

U.S. stock futures are headed lower this morning, as Wall Street digests the possibility of more interest rate hikes in 2018. On Friday, Cleveland Fed President Loretta Mester hinted to Reuters at the possibility of four rate hikes this year. On Saturday, San Francisco Fed President John Williams backed the current pace of three hikes due to economic lift from the tax plan.

More from the Fed will arrive today. Atlanta Fed President Raphael Bostic is due to speak at the Rotary Club of Atlanta this afternoon. Additionally, Boston Fed President Eric Rosengren will participate in a panel to discuss whether Fed should stick to a 2% inflation target.

While futures were headed higher early this morning, they have since reversed course. At last check, Dow Jones Industrial Average futures are down 0.06%, S&P 500 futures are off 0.15% and Nasdaq-100 futures have fallen 0.13%.

Turning to the options pits, Friday’s volume remained brisk. Overall, about 20.5 million calls and 16.4 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to 0.58. The 10-day moving average held at 0.56.

Taking a closer look at Friday’s options activity, Apple Inc. (NASDAQ:AAPL) attracted heavy call volume heading into what proved to be a rather rough weekend for the company. Meanwhile, Micron Technology, Inc. (NASDAQ:MU) options received a sentiment boost after a bullish note on memory chip demand from Keybank. Finally, General Electric Company (NYSE:GE), last year’s ultimate dog of the Dow, has emerged as one of 2018’s top 10 favorites.

Monday’s Vital Options Data: Apple Inc (AAPL), Micron Technology, Inc. (MU) and General Electric Company (GE)investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-300×138.png 300w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-400×184.png 400w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 547px) 100vw, 547px” />

Apple Inc (AAPL)

Apple stock options were extremely call heavy on Friday. Volume topped out at 543,000 contracts, with calls snapping up an above average 69% of the day’s take. The net effect was to drive AAPL’s January 2018 put/call open interest ratio lower from a reading near 1.16 to today’s perch at 1.12.

Sentiment was up after the company said that it would quickly patch any semiconductor vulnerabilities. Chip stocks were hit hard after revelations of exploits affecting Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) processors.

Today, however, could be a different story. Apple was hit with fresh concerns over worker conditions in China following the suicide of a Foxconn worker at an iPhone production plant this weekend. Additionally, investors are calling for Apple to investigate the potential harm of iPhone and tablet-like devices on children.

AAPL stock is down fractionally in pre-market trading.

Micron Technology, Inc. (MU)

Micron stock remained volatile on Friday, despite a bullish research note from analysts at Keybanc. According to Keybanc, news in the DRAM and NAND markets is “neutral to good.” Specifically, DRAM supply is tight and should help support prices, while NAND is headed for “oversupply.” However, NAND oversupply should work its way out of the system later this year, returning pricing power to Micron.

Options traders appeared to take profits following the recent run higher, however. Volume on Friday rose to 305,000 contracts, with calls accounting for 65% of the day’s take.

The resulting January 2018 put/call OI ratio rose to 0.65 from last week’s reading of 0.62. The activity hints that options traders may be taking profits after MU rallied more than 11% last week.

General Electric Company (GE)

After finishing 2017 as the worst performing member of the Dow Jones Industrial Average, GE stock has emerged as one of the potential top performers of 2018. General Electric has made the top 10 list of several notable top-ranked stock newsletters, including George Putnam’s, The Turnaround Letter.

GE stock is already up more than 6% in 2018, enjoying a solid first week for the year. Options traders have also taken up the bullish call. Volume on Friday rose to 272,000 contracts, or more than 1.5 times GE’s daily average. Calls gobbled up 72% of the day’s take.

Short-term options traders have grown heavily bullish on GE stock heading into the first expiration of 2018. Specifically, the January put/call OI ratio has fallen to a reading of 0.43, with calls more than doubling puts among front-month options.

Finally, there could be more gains to come. GE closed above its 50-day moving average on Friday and could be set to challenge resistance at $19 this week. A breakout above resistance at $19 could be a significant short-term boon for GE bulls.

As of this writing, Joseph Hargett was long General Electric Company (GE) stock.

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Intel Begins 2018 as the Worst Performing DJIA Stock

Intel Corp. (NASDAQ: INTC) got some bad news last week regarding a security flaw in the chips it has been producing for at least the past two decades. And while the company’s stock has recovered somewhat since the news broke, it closed out the first week of the year as the worst performer among the 30 stocks that comprise the Dow Jones Industrial Average (DJIA), with a share price loss of 3.08%.

The second-worst performer for 2018 among the Dow 30 is Travelers Co. Inc. (NYSE: TRV), which is down 2.57% in the first week of the year, followed by Verizon Communications Inc. (NYSE: VZ), down 0.85%, and Procter & Gamble Co. (NYSE: PG), down 0.7%. These are the only four stocks that posted share price losses last week.

The Dow posted an all-time high of 25,299.79 on Friday and closed the week at 25,295.87. The index gained about 1.9% in the first week of the year.

When every one of a company’s principal product for the past 20 or so years is revealed to have a major flaw, it’s only realistic to expect the stock’s price to tumble. When word got out last Tuesday that Intel’s x86 processors had two gaping holes that could allow cybercrooks to steal personal data from any machine, the share price plunged more than 5%.

It turned out that chips based on designs from other semiconductor makers like ARM and AMD also had one of the same flaws, dubbed Meltdown and Spectre. The San Jose Mercury News explains:

Meltdown is exclusive on Intel chips and allows hackers to bypass the hardware barrier between running applications and the computer’s memory, thereby allowing hackers access to the latter. Spectre affects chips made by Intel, AMD and ARM and tricks applications to hand over secret information.

Microsoft already has issued a software patch, and Apple and Google are working on fixes for their products, including smartphones and tablets.

Intel shares dropped to a low of $42.69 on Thursday before recovering to close the week at $44.74. From Tuesday’s closing price of $46.85, the shares lost more than $2.00 by the end of the week. The stock’s 52-week range is $33.23 to $47.64, and the 12-month consensus price target is $47.08. The low target is $32 and the high target is $58.

ALSO READ: General Electric From Worst to First Among DJIA Stocks

Apple, Intel Sink DJIA Tuesday

December 26, 2017: Markets opened lower Tuesday following the three-day Christmas holiday weekend. The DJIA briefly turned higher, but traded for most of the day with a small loss. Energy was the leading sector but couldn’t overcome weakness in tech and utilities. WTI crude oil for February delivery settled at $59.97 a barrel, up 2.6% for the day following a pipeline explosion in Libya. The is WTI’s highest close in more than two years. February gold added 0.7% on the day to settle at $1,287.50. Equities were headed for a lower close shortly before the bell as the DJIA traded down 0.11% for the day, the S&P 500 traded down 0.18%, and the Nasdaq Composite traded down 0.41%.

Bitcoin futures for January traded at $15,920, up about 12.6%, on the CME after opening at $13,900 this morning. Only 374 contracts had been traded in the session and open interest is just 489.

The DJIA stock posting the largest daily percentage loss ahead of the close Tuesday was Apple Inc. (NASDAQ: AAPL) which traded down 2.63% at $170.41. The stock’s 52-week range is $114.76 to $177.20. Volume was nearly 10% above the daily average of around 26 million shares. Some analysts said iPhone X sales would be down sharply from quarterly.

Intel Corp. (NASDAQ: INTC) traded down 1.50% at $46.00. The stock’s 52-week range is $33.23 to $47.64. Volume was less than half the daily average of around 29 million. The semiconductor maker had no specific news.

DowDuPont Inc. (NYSE: DWDP) traded down 1.03% at $71.37. The stock’s 52-week range is $56.52 to $73.85. Volume was down more than 70% from the daily average of around 7.3 million shares. The company had no specific news.

The Goldman Sachs Group Inc. (NYSE: GS) traded down 0.60% at $257.41. The stock’s 52-week range is $209.62 to $262.14. Volume was about a 60% below the daily average of around 2.7 million shares. The investment bank had no specific news.

Of the Dow stocks, 13 are on track to close higher Tuesday and 17 are set to close lower.
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Meet the Preliminary Dogs of the Dow for 2018