Stocks – S&P Continues Flirt With Record as Tech Rallies

This post was originally published on this site
© Reuters. © Reuters.

By Yasin Ebrahim – The S&P continued to flirt with record intraday highs Wednesday, led by a rally in tech on the back of bullish earnings from IBM (NYSE:) and improved sentiment on chip stocks.

The rose 0.3%. The gained 0.15% and the was up almost 0.6%.

IBM (NYSE:) led the rally in tech, rising 3% as Big Blue’s better-than-expected were greeted by several endorsements from Wall Street.

Morgan Stanley raised its price target on IBM (NYSE:) to $164 from $155, but said the return to revenue growth for the company was driven by “less sustainable” tailwinds like the new Red Hat unit and currency gains.

Cantor Fitzgerald and Citigroup (NYSE:) also raised their price targets on IBM.

Chip stocks also powered the broader averages to intraday highs as a sunnier outlook from chipmaker ASML (NASDAQ:) stoked sentiment on the sector ahead of key earnings from chip bellwether Texas Instruments (NASDAQ:) after the closing bell.

But Netflix (NASDAQ:) fell 2% as its weaker outlook on growth for the first quarter raised concerns about the impact of rising competition from rivals like Disney (NYSE:) and Apple (NASDAQ:).

Against the backdrop of gains in tech, industrials remained under pressure as Boeing (NYSE:) struggled to gain its footing following an announcement that its 737 Max would likely be grounded until mid-2020.

Boeing said its decision to advise customers its grounded 737 Max jet was unlikely to be recertified until mid-year was not due to any new technical issues

Energy, meanwhile, was the worst-performing sector as oil prices slumped after the International Energy Agency warned of surplus in crude at a time when concerns about softer demand persist.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.