Yesterday, a handful of giant stocks dragged the market down while everything else held steady. Today, the script flipped again. The broad market is rallying, and a cluster of tech names is the thing holding back the market indexes.
The S&P 500 (SNPINDEX: ^GSPC) is up 0.59% as of 11:27 a.m. ET and the Dow Jones Industrial Average (DJINDICES: ^DJI) has added 0.58%. The Nasdaq Composite (NASDAQINDEX: ^IXIC) trails at 0.39%, held back by its heavier technology weighting.
All three opened lower and two of them climbed through the morning. The Nasdaq took a different path with a short-lived dip into negative territory. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The Nasdaq's path told the real story on Wednesday morning.
The index fell roughly 0.6% in the first hour before recovering to a gain, and a single stock drove much of the early weakness. Broadcom (NASDAQ: AVGO) fell 4.7% and, as the Nasdaq's heaviest weight, took the index down with it early. The trigger was a rival's good news.
Marvell Technology (NASDAQ: MRVL) announced a much deeper custom-chip deal with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, complete with warrants letting Google buy up to about 59 million Marvell shares. Broadcom has been Google's primary custom-chip partner and holds an agreement running through 2031, so the concern is lost share rather than a lost customer. Marvell rose 8.4% on the news.
Extract — continue reading at the source.
