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Shares Of Intel (NASDAQ: INTC) Rally To New High Into Earnings – Mike Swanson (01/22/2020)

Shares of Intel (NASDAQ: INTC) are up almost 3% going into 1:000 PM EST today. This is helping to bring buyers into other semiconductor stocks to drive the VANECK VECTORS/SEMICONDUCTOR ETF (NASDAQ: SMH) to a new 52-week high. Here is the chart of INTC.

INTC is also the top gaining stock inside the SMH ETF and since it also is in the DIA, SPY, and QQQ it is actually helping push the entire stock market up today. What is behind the move?

There are rumors that the company is going to try to get more market share by cutting prices on its chips. It already has announced planned layoffs in the past few days to cut costs. On one hand that might mean there is actually less demand for chips now, but market traders seem to believe that it will enable the company to increase profits by cutting costs.

Intel is scheduled to report earnings on Thursday after the stock market close. At investing.com Jesse Cohen had this to say about Intel earnings.

Meanwhile Forbes is speculating that the stock will sell after earnings is announced. They are expecting the company to fail to beat analyst expectations. But stocks that run up into earnings often become vulnerable to profit taking.

There is a lot going on in these markets. The pace of the market rally is causing many to worry that it is heading for a top this year. However, yesterday’s action in corporate bond ETF’s suggest that all is fine for now. I’m watching some interesting action in cannabis stocks such as Tilray and Mota Ventures this week.