Intel Helps Put the Dow Back in Black

Stock markets got a boost today from stronger-than-expected data about the economy. On the housing side, the Federal Housing Finance Agency said home prices rose 0.6% in December, while the S&P/Case-Shiller index rose 0.2%. Further, the Department of Commerce said new-home sales rose 15.6% in January to an annual rate of 437,000, a rate not seen since July 2008. Consumer confidence also rose in February, according to the Conference Board, whose index rose to 69.6 from 58.4 in January, surpassing the estimate of 62.3. Add all of this up, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 0.8% as of 3:25 p.m. EST, while the S&P 500 (SNPINDEX: ^GSPC  ) is climbing 0.53%.

Home Depot (NYSE: HD  ) has led the 30 Dow components, rising 5.2% on the strong housing data and better-than-expected earnings. Earnings jumped 32% to $0.68 per share, which was $0.04 better than estimates. The company also increased its quarterly dividend to $0.39 per share and announced a $17 billion share repurchase program. This is a hugely bullish bet by Home Depot on the long-term recovery in housing, and it should be an indicator of stability in that market going forward.

Tech stocks Hewlett-Packard (NYSE: HPQ  ) and Intel (NASDAQ: INTC  ) are also moving the Dow higher, climbing 3.4% and 1.8%, respectively. HP announced a deal to sell the webOS mobile operating system to LG Electronics, ending the company's failed attempts to revive the mobile platform. The company will go with the Android operating system for new tablets, which it hopes can help bolster sales.

Intel's shares rose after the company announced an agreement to develop chips for Altera's semiconductors. The deal will use Intel's 14-nanometer tri-gate transistor technology and reportedly comes with margins in excess of 50%. Intel needs all the good news it can get as its traditional PC business slowly fades, so investors cheered the news today.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, Intel must find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Better yet, you'll continue to receive updates for an entire year. Click here now to learn more.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2279821, ~/Articles/ArticleHandler.aspx, 9/30/2016 1:34:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,324.62 181.17 1.00%
S&P 500 2,169.61 18.48 0.86%
NASD 5,312.42 43.27 0.82%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 1:19 PM
^DJI $18325.03 Up +181.58 +1.00%
HD $128.75 Up +0.82 +0.64%
Home Depot CAPS Rating: ****
HPQ $15.64 Up +0.25 +1.60%
HP CAPS Rating: ***
INTC $37.90 Up +0.58 +1.55%
Intel CAPS Rating: ****
^GSPC $2169.51 Up +18.38 +0.85%
S&P 500 INDEX CAPS Rating: No stars