U.S. equities moved higher on Tuesday thanks to dovish comments from Federal Reserve Chairwoman Janet Yellen. She talked up the downside risk to the economy and talked down the recent rise in core inflation and lower the chances of an April interest rate hike.
The bulls responded with enthusiasm, pushing the Dow Jones Industrial Average up 0.6%.
The highlights of the day were big moves in a number of large-cap tech stocks. Here are three to watch: Apple Inc. (NASDAQ:AAPL), Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT).
Apple Inc. (AAPL)
AAPL shares have moved up to test its recent high near $107.50. A breakout here would put the 200-day moving average just over $110 for the first time since November.
Analysts at RBC believe the next big catalyst for the stock will be the April earnings release, during which management will update its capital allocation program. Watch for a possible increase in the dividend by upward of 15%, which would take the yield to 2.3%.
Alphabet Inc (GOOGL)
GOOGL shares have moved to test the upper end of its five-month consolidation range near $780. A breakout would initiate the first uptrend in the tech giant since October.
Analysts at Rosenblatt thinks the company is trading at an attractive discount relative to peers like Facebook Inc (FB). On an enterprise-value-to-operating-earnings basis, GOOGL is trading near 12x while FB is near 20x.
Microsoft Corporation (MSFT)
MSFT shares have rallied to retest its December high near $56 — threatening to break up and out of a consolidation range going to October.
With the Windows 10 catalyst behind us, investors are watching as the chatter grows the company could be a potential buyer of the core business of online icon Yahoo! Inc. (YHOO).
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
