The Nasdaq hit a record high on Wednesday and the S&P 500 was close behind as reassuring comments from Texas Instruments (NASDAQ:TXN) about global chip demand blunted the impact of weak earnings reports from Boeing (NYSE:BA) and Caterpillar Inc (NYSE:CAT).
Texas Instruments Incorporated (NASDAQ:TXN) 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 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 dropped 4.1% following disappointing earnings on weak sales in China and higher production and restructuring costs.
Boeing Co fell 2.8% after the world’s largest plane-maker posted its largest-ever quarterly loss on the back of this year’s grounding of its best-selling 737 MAX after two deadly crashes.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.