Intel, Microsoft Lead As Market Rallies On Tax Reform Optimism

Intel, Microsoft Lead As Market Rallies On Tax Reform Optimism

The Nasdaq ran ahead of the major market averages Friday, up 1.2% as rising optimism regarding a GOP tax reform effort helped drive blue chip tech names including Intel ( INTC ), Microsoft ( MSFT ) and United Technologies ( UTX ) to the head of the Nasdaq 100.

[ibd-display-video id=3025730 width=50 float=left autostart=true] Electronics makers and staffing companies, metals and drug distributors were among the many industries to post gains of better than 3% during the session .

The advance was sufficient to lift the Nasdaq past its Nov. 28 peak to its first new high in three weeks. The S&P 500 gained  0.9%, also scratching off a new high as Under Armour ( UA ) took the index’s largest gain, surging 9% after Stifel Nicolaus upgraded the stock to buy, from hold.

That put Under Armour shares back above their 10-week moving average and up 32% from a November low, although still deep in a 20-month correction.

Railroad CSX ( CSX ), Barbie-maker Mattel (MAT) and chipmaker Oracle (ORCL) turned in the S&P 500’s worst losses, down 8%, 5% and 4%, respectively.

The Dow ran not quite as hot as its peer indexes, up 0.6%, but plenty strong enough to once again make news highs. Intel was the leader, up 3% on what appeared to be primarily a tax plan-related move.

Small caps also did well with the Russell 2000 up 1.5%.

Intel’s gain put shares in a buy range on a rebound from support at the stock’s 10-week moving average . The rebound occurred in only modest volume, and the chart pattern is also a flat base , so investors have the option of waiting to see whether shares climb past the 47.40 buy point.

Microsoft took out its 86.30 buy point, rising nearly 3%  in powerful trade, moving to a new high but remaining well within buy range .

Bitcoin drew heavy attention, with the cryptocurrency jumping 10% – back above $17,800. Related stocks were also busy, with Bitcoin Investment Trust (GBTC) up 14%, bringing its gain since the start of the month to 79%. Riot Blockchain (RIOT) also vaulted 14%. Marathon Patent Group (MARA) thumped out a 6% gain and bitcoin friendly online retailer (OSTK) soared 11%.

Nearly one-third IBD 50 names scored gains of 2% or better. At the top of the list, Planet Fitness (PLNT), SVB Financial Group (SVB) and Atlassian (TEAM) all sparked up more than 3%. Planet Fitness and SVB are extended. Atlassian is fighting to beat resistance at its 10-week line and start up the right side of a 19% deep consolidation.


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