Dow Jones futures fell slightly late Wednesday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally rebounded strongly Wednesday from Tuesday’s late sell-off. ASML (ASML) extended a breakout while Intel (INTC), Advanced Micro Devices (AMD), KLA Corp. (KLAC) and Analog Devices (ADI) cleared buy points.
Intel stock, AMD stock, KLAC stock and ADI stock made encouraging moves. However, ASML stock showed strong action Wednesday, while the chip-equipment maker has been a leader for quite some time.
Intel and Apple are members of the Dow Jones, S&P 500 index and Nasdaq composite.
Dow Jones Futures Today
Dow Jones futures fell 0.25% vs. fair value. S&P 500 futures slid 0.25%. Nasdaq 100 futures dipped 0.1%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Coronavirus cases worldwide are above 5.08 million. Covid-19 deaths have reached 329,000.
Coronavirus cases in the U.S. are now at 1.59 million with deaths topping 94,000.
Brazil is a major hot spot, adding more than 21,000 cases on Wednesday, with coronavirus cases eral other Latin American countries.
While new coronavirus cases are gradually slowing in the U.S. and coming under control in Europe, Russia, India and much of the Middle East are showing big increases.
Coronavirus Stock Market Rally
The coronavirus stock market rally rebounded strongly from Tuesday’s sell-off into the close. The Senate passage of a bill that could force Chinese companies to delist from U.S. markets curbed gains briefly, but the major indexes closed not far from session highs.
The Dow Jones Industrial Average rose 1.5%, the S&P 500 index 1.7% and the Nasdaq composite 2.1%. The S&P 500 is nearing its 200-day line while its 50-day moving average has turned positive. The Nasdaq composite continues to lead the coronavirus market rally, nearing record highs as growth stocks power ahead.
Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) advanced 1.65%. The VanEck Vectors Semiconductor ETF (SMH) popped 3.6%, with Intel stock, AMD stock and ASML stock among the notable holdings.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
ASML stock rose 6.3% to 325.64. That extended Tuesday’s lackluster breakout attempt above the buy point at 306. ASML stock also hit a new all-time high. Volume was slightly below normal, but the past few days have shown relatively high trading vs. the last few weeks.
The relative strength line for ASML stock was already at a new high before Wednesday’s move, a bullish sign. The RS line, the blue line in the charts provided, has been trending higher since the start of 2019. That reflects ASML stock’s outperformance vs. the S&P 500 index.
ASML stock is now slightly extended from the 306 entry. Shares could pull back into the 5% chase zone or consolidate near current levels to provide an alternative entry. ASML was the IBD Stock Of The Day.
Intel Stock, Other Chip Stocks Clear Buy Points
Intel stock jumped 4.7% to 63.10, above a 62.23 cup-with-handle buy point. A strong move for the Dow tech titan. But the RS line for Intel stock is not even above the handle high. More broadly, Intel hasn’t been a leader among chips or the overall stock market for quite some time.
ADI stock popped 7.75% to 114.57, just above a 114.16 cup-with-handle buy point, according to MarketSmith analysis. Volume was strong, which is not surprising given the Analog Devices earnings report before Wednesday’s open. As with Intel stock, ADI stock hasn’t been a real chip or market leader in some time.
KLA stock rallied 3.1% to 177.92, nudging past a 117.27 buy point. Like fellow chip-equipment play ASML stock, the RS line for KLA stock has been trending higher for quite some time.
AMD stock rallied 1.7% to 56.39. That put the graphics-chip maker above a downward-sloping trend line, offering an aggressive entry. But for a second straight session AMD stock failed to close above a short-term level of 56.68. The official cup-with-handle buy point is 58.73. While AMD stock has been a chip and market leader, recently it’s been lagging rivals such as Nvidia (NVDA). Also, Nvdia earnings Thursday night could move AMD stock.
If nothing else, it’s encouraging to see more chip stocks breaking out, joining software as a major tech sector leading the coronavirus stock market rally.
Apple stock rose 1.9% to 319.23 on Wednesday, the highest close since Feb. 21. That’s just below a 319.79 buy point — an alternate entry on a daily chart and an official cup-with-handle entry on a weekly chart. The RS line for AAPL stock is just below all-time highs, and has been trending higher for a long time.
Google stock rose 2.5% to 1,409.16, just a fraction below a 1,415.63 cup-with-handle entry.
The RS line for Google stock has been hitting new highs. But the FANG stock hasn’t been a big market winner in the past few years.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE: