Nasdaq Negative As Broadcom Western Digital Intel Erase Early Gains

Major stock indexes turned lower in afternoon trading Tuesday, unable to hold early gains despite another tame reading in consumer inflation before the open.

X Semiconductor names Micron Technology (MU), Broadcom (AVGO) and Intel (INTC) were early outperformers in the Nasdaq 100, but gains faded for all three. Late Monday, President Trump blocked a proposed merger between Broadcom and Qualcomm (QCOM), citing national security concerns. A nearly-7% intraday gain for Micron faded to less than 1% late Tuesday, while a 4% gain for Intel morphed to less than 0.5%.

The Nasdaq composite fared the worst, falling 0.9%, but after seven straight gains, some consolidation isn't out of the ordinary. The S&P 500 lost 0.5% and the Dow Jones industrial average gave back 0.4%. Volume on the Nasdaq was tracking higher than Monday's level. NYSE volume was on pace to be slightly lower.

General Electric (GE) lagged in Dow, falling 4%, after JPMorgan reiterated its underperform rating and cut GE's price target to 11 from 14.

Consumer inflation in February was another nonevent as prices overall rose 0.2%, with the core rate also up 0.2%. Both numbers matched expectations. Year-over-year, core prices rose 1.8%, slightly below the consensus estimate of 1.9%, according to Econoday.

Even as inflation data remain tame, the market is still expecting a quarter-point hike at the March 21 Federal Reserve meeting, putting the chances at around 89% according to the CME FedWatch Tool.

In the stock market today, Century Aluminum (CENX) showed bullish price action after flashing a sell signal from a 20.78 buy point. Shares gapped above the 50-day moving average, rising around 7%. BMO Capital Markets on Monday upgraded shares to outperform from market perform and raised its price target to 28 from 20, citing positive effects from recently announced tariffs by the Trump administration. The aluminum producer has the look of a compelling turnaround story after some softness in earnings and sales last year. Full-year profit is expected to jump 210% this year and 52% in 2019.

On the downside, Dick's Sporting Goods (DKS) slumped 3% after reporting earnings before the open. Deteriorating fundamentals is the main reason Dick's has been on a downtrend for more than a year. It was highlighted for a bearish put-option trade in the latest Earnings Preview column.

Inside the IBD 50, China Lodging (HTHT) was slightly below the 50-day moving average ahead of its earnings report after the close. Shares fell 3% to 149.54. A late-stage, cup-with-handle base with a 161 buy point is still intact.

Outperformers in the IBD 50 Tuesday included retailers Five Below (FIVE) and Skechers (SKX) as well as Canada Goose (GOOS).

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