Trade of the Day: HP Inc (HPQ) Getting Plugged In

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HP Inc (NYSE:HPQ) — U.S. equities powered higher — still within the confines of a two-week trading range — thanks to indications out of Algiers that OPEC members could possibly be moving closer to the production freeze agreement that has been teased since February.

While energy stocks carried the day with a gain of 4.3%, technology stocks continued their recent string of relative strength. So while the Dow Jones Industrial Average is trading below the highs set in July and August, the Nasdaq Composite is challenging fresh highs set last week as stocks like Amazon.com, Inc. (NASDAQ:AMZN) cruise to new records.

Trade of the Day: HP Inc (HPQ) Getting Plugged In

But pulling up the rear are second-string tech stocks like HPQ, which has rallied smartly to levels not seen since early last year — nearly doubling off of the lows set back in February and up some 13% from lows seen earlier this month. That’s boosted the October $15 calls recommended to Edge Pro subscribers to a gain of more than 63%.

The rise was kick started by bullish comments from Intel Corporation (NASDAQ:INTC) on September 16: The chipmaker increased its revenue guidance on an increase in PC supply chain inventories on indications of improving end-user demand.

HPQ will next report results on November 22 after the close. Analysts are looking for earnings of 36 cents per share on revenues of $11.9 billion. On August 24, the company reported a top- and bottom-line beat on a 3.8% drop in revenues from last year.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2016/09/trade-day-hp-inc-hpq-stock/.

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