Wall Street Gains Across the Board on Techs, as FOMC Affirms QE

Michael Teague  |

On Wednesday, the S&P 500, the Dow, and the Nasdaq all gained near 1 percent or more and Wall Street extends its record-breaking tendencies into the second quarter.

Against the unlikely backdrop of the Fed’s early and accidental leak of the Open Market Committee meeting’s minutes, as well as the beginning of an earnings season that has so far provided mixed results, the S&P 500 broke through to a new all-time high in intraday trading, as high as 1,589.07 before closing at 1,587.73, up 1.22 percent.

The minutes of the FOMC showed that a majority of the Fed’s board members favored continuing the reserve bank’s monetary policy pending solid improvement in the economy, though there was a good portion of the summary that dealt in some detail with reservations on the part of some members regarding the potential consequences from quantitative easing and sustained record-low interest rates.

Half of the S&P’s top 20 performers were tech stocks. JDS Uniphase Corp. (JDSU) gained 4.84 percent to close at $13.99, followed by Micron Technology Inc. (MU) up 5.38 percent to $10.09, and Juniper Networks Inc. (JNPR), up 4.67 percent to close at $18.84. Teradata Corp (TDC), SanDisk Corp. (SNDK), Akamai Technologies, Inc. (AKAM), MetroPCS Communications (PCS), Applied Materials Inc. (AMAT), Western Digital Corp. (WDC), and TripAdvisor Inc. (TRIP) making up the rest of the list, all making gains of over 3 percent on the day.

First Solar’s (FSLR) shares cooled off after Tuesday’s close that saw the stock gain nearly 50 percent, dropping 7.70 percent on the day to close at $36.32, while Best Buy (BBY), whose shares have more than doubled in price in 2013 as a result of the company’s successful turnaround plan and, more recently, its deal with Samsung, dropped 3.57 percent to close at $24.82.

The Dow also reached and held yet another record high during, reaching 14,826.66 before closing up 0.88 percent to 14,802.24, pushed upward by 6 tech stocks among its top 20 components, with Intel Corp. (INTC) leading the way, up 2.34 percent to $22.26, propelled by the announcement of the second version of its super-fast Thunderbolt computer connectivity technology, as well as the introduction of its much anticipated Moonshot server systems.

Intel was followed closely by Cisco Systems Inc. (CSCO), who gained 2.46 percent to close at $21.49, and Microsoft Corp. (MSFT), up 2.09 percent to $30.23, with International Business Machines (IBM), AT&T (T), and Verizon Communications (VZ) in tow.

Only three of the Dow’s components were in the red, including aluminum manufacturer Alcoa (AA), down 0.83 percent to $8.32, Wal-Mart Stores (WMT), down 0.74 percent to $77.54, and The Travelers Companies Inc. (TRV), down 0.54 percent to $84.81.

The Nasdaq gained a whopping 1.83 percent to close the day at 3,297.25.

Royale Energy (ROYL), the independent oil and gas company from San Diego, had a monster day gaining 67.05 percent to close at $3.34, the second time its shares have done so in as many weeks, as a result of the news of an upcoming and extremely lucrative deal with an as-yet unnamed partner who will help the company explore and drill its North Slope, Alaska holdings.

JetBlue (JBLU) clocked in a gain of 4.33 percent, to close at $6.99, after the popular discount airline reported a year-on-year traffic increase of 8.6 percent, while Coinstar, Inc. (CSTR) was up 3.87 percent to close at $58.78.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AA Alcoa Corporation 23.32 0.15 0.65 2,881,522 Trade
INTC Intel Corporation 49.17 -0.95 -1.90 17,131,368 Trade
TRV The Travelers Companies Inc. 154.59 -0.24 -0.16 877,973 Trade
AKAM Akamai Technologies Inc. 83.37 -0.10 -0.12 684,118 Trade
SNDK SanDisk Corp n/a n/a n/a 0 Trade
TMD.WT.E:CA Titan Medical Inc. April 2017 Warrants n/a n/a n/a 0
TRIP TripAdvisor Inc. 46.76 1.00 2.19 1,495,537 Trade
JDSU Viavi Solutions Inc n/a n/a n/a 0 Trade
CSCO Cisco Systems Inc. 57.62 -0.43 -0.74 11,501,067 Trade
JBLU JetBlue Airways Corporation 19.50 0.77 4.11 5,237,595 Trade
VZ Verizon Communications Inc. 57.41 -0.17 -0.30 10,556,199 Trade
TDC Teradata Corporation 36.00 -0.25 -0.69 565,013 Trade
ROYL Royale Energy Funds Inc - Ordinary Shares 0.24 -0.02 -8.02 4,000
JNPR Juniper Networks Inc. 27.29 0.21 0.78 2,978,752 Trade
AMAT Applied Materials Inc. 46.01 -0.27 -0.58 6,671,096 Trade
BBY Best Buy Co. Inc. 74.78 -0.72 -0.95 2,301,909 Trade
FSLR First Solar Inc. 64.49 -1.51 -2.29 834,900 Trade
WDC Western Digital Corporation 51.49 -3.15 -5.77 11,346,525 Trade
MU Micron Technology Inc. 43.06 -1.34 -3.02 31,238,932 Trade
T AT&T Inc. 33.58 -0.13 -0.39 17,869,349 Trade
MSFT Microsoft Corporation 137.08 -1.82 -1.31 22,726,128 Trade
WMT Walmart Inc. 114.76 -0.22 -0.19 3,488,164 Trade
IBM International Business Machines Corporation 143.53 0.21 0.15 3,474,688 Trade

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