Chip Makers Drive US Stocks to Another Record High

The Nasdaq hit a record high on Wednesday and the S&P 500 was close behind as reassuring comments from Texas Instruments about global chip demand blunted the impact of weak earnings reports from Boeing and Caterpillar.

Texas Instruments Inc (TXN.O) jumped 7.1% after the company hinted that a global slowdown in microchip demand would not be as long as feared, powering the Philadelphia chip .SOX index up 2.8% to a record high.



“Semiconductor investors are looking past right now and saying that maybe in the second half of this year, economic concerns will start to abate a little,” said Willie Delwiche, an investment strategist at Robert W. Baird in Milwaukee.

However, trade-sensitive Caterpillar Inc (CAT.N) dropped 4.1% following disappointing earnings on weak sales in China and higher production and restructuring costs.

Boeing Co (BA.N) fell 2.8% after the world’s largest planemaker posted its largest-ever quarterly loss on the back of this year’s grounding of its best-selling 737 MAX after two deadly crashes.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza