Tag Archives: nasdaq

5 Top Chip Stocks Seek Support Amid Enterprise Demand Warning

Highly rated chipmakers Macom Tech ( MTSI ), Microsemi ( MSCC ), MaxLinear ( MXL ), Inphi ( IPHI ) and Cirrus Logic ( CRUS ) are dropping in heavy volume today, though they pared their losses as the tech-heavy Nasdaq rallied by the early afternoon. Some of the selling pressure is potentially coming from Juniper Networks ‘ ( JNPR ) earnings preannouncement late Monday. The networking equipment vendor lowered its first-quarter revenue and earnings expectations below Wall Street estimates, citing weaker-than-anticipated demand from enterprise customers. Macom tumbled intraday below its 50-day line and the 40 price level in intraday trade, but the shares are now looking for support at those levels, down 2.9% in early afternoon action. The stock is trading 11% below its recent high. Microsemi is plunging back below buy range from a cup-with-handle base buy point it initially cleared in mid-March, losing 2.5%. In intraday trade, shares neared the 50-day line, which recently crossed back above the 200-day line as the stock’s performance improved. MaxLinear also dropped back below buy range from a base it initially cleared in early March, though it pared its losses, sliding 2.8% in early afternoon action. Several weeks ago, the stock dipped back below buy range but found support at the 50-day line before regaining composure. Inphi is still well extended from a double-bottom entry at 28.54, but it tested the lower bound of its buy range from an alternate entry at 32.42. Shares dipped 1.2% to 33.41. And Apple ( AAPL ) supplier Cirrus Logic is testing support at its 50-day line, but it bounced back to trade unchanged. Shares are trading 7% below their high set last May. Apple, for its part, rose 0.6% intraday. Meanwhile, Juniper Networks gapped down 8% on the bearish outlook, plunging below its 50-day line in giant volume. The stock is now 29% below its November peak.

Market Lab Report – Premarket Pulse 4/12/16

Major averages reversed after an initial morning gap-up to close lower on mixed volume, with volume higher on the S&P 500. Crude finished higher but the averages finished at their lows. The NASDAQ Composite has closed three days in a row below its 200-day moving average, with the last two days coming on reversals back to the downside after initial gap-up opens. Alcoa (AA) which kicked off earnings season yesterday after the close traded lower in the after-hours by about 4%, though it also traded lower by several percent after it reported earnings the last two times, on October 9, 2015 and January 12, 2016. The general market shrugged off earnings which were overall weak in October because easy money via central banks was a more important factor. Meanwhile, in January, the market headed lower but this was primarily due to the global economic crisis at hand.