The markets traded higher today though in a larger range. The Dow 30 closed higher on the day by 39, the S&P 500 added 6, and the Nasdaq closed higher on the day by 46.
Sector News
Semiconductors (SMH ) shot higher today, hitting new highs on the year thanks mostly to a report from Taiwan Semiconductor that smartphone sales are picking up. The report suggests that the bottom is in for chipmakers following a period of oversupply and low pricing. The SMH is now higher by almost 30% on the year.
Regional Banks (KRE ) enjoyed another positive day today as they continue to try to recover from the Fed day decline of over 12%. The regional banks have now recovered about 8% of that decline but have run into overhead resistance, which many technical traders assume will slow the recovery.
Stock News
GameStop (GME ) shares plummeted to new lows today following a disappointing earnings report in which the company showed revenue that was lower than expected. The major focus by investors was the warning that they would likely show a loss for the current quarter due to a rapid decline in store sales. The company continues to be an acquisition target, but so far no reported interest.
Dave & Busters (PLAY ) reported earnings that came in much better than expected ($0.75 vs. $0.63) along with revenue, which also beat. Restaurant sales were also a focus, rising 2.9% - much better than the 2% expected. Shares moved back towards the 200-day moving average, but were unable to close above.
Netflix (NFLX ) shares remain near highs as the Department of Justice has become involved in potential rule changes by the Motion Picture Academy to only allow Academy Awards to be given out to movies that were more widely distributed. The DOJ sent a letter to the Academy and it reportedly included antitrust concerns.
