Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Intel Corporation (INTC), Microsoft Corporation (MSFT): Tech Stocks Have the Dow (.DJI) Record-Bound Again

In any long bull market, various sectors of the stock market move in and out of favor. Even as the Dow Jones Industrial Average (INDEXDJX:.DJI) and other, broader measures seem to move smoothly higher over time, their individual components often ebb and flow in currents and countercurrents that reflect changing investor sentiment. Today’s jump in the Dow reflects such a change, as the average managed to shrug off the early release of the Fed’s FOMC meeting minutes and the suggestion that the Fed might slow its quantitative-easing program. By 10:55 a.m. EDT, the Dow was up 106 points to a new record, while the S&P 500 (INDEXSP:.INX) had hit a new intraday all-time high as well.

Intel Corporation (NASDAQ:INTC)

Looking at the biggest gainers in the Dow, you’ll see Cisco Systems, Inc. (NASDAQ:CSCO) , Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) all near the top of the list with gains of more than 2%. What all three of those tech stocks have in common is that their valuations are extremely inexpensive in comparison to the rest of the Dow Jones Industrial Average (INDEXDJX:.DJI), and value investors have finally started to pick up on that fact as they look for ways to protect themselves from a potential stock-market correction.

Of course, positive news also helped send these stocks higher. Intel jumped after climbing 3% yesterday after its mobile-chip infrastructure ended up included in Hewlett-Packard‘s Moonshot server systems. Given concerns about Intel’s mobile capacity, the announcement helped to dispel fears about the chip giant’s future. Meanwhile, Microsoft took its own steps to boost its mobile growth, joining a group of companies putting pressure on European regulators to fight Google Inc (NASDAQ:GOOG) and the mobile-search practices of its Android devices. And while Cisco Systems, Inc. (NASDAQ:CSCO) had little direct news, its two-day rise shows how closely linked the prospects of major tech companies are in the current market.

Big tech stocks have seen their leadership positions endangered for a long time, and many investors have held back from buying them despite their value proposition. If that reluctance turns into enthusiasm, then tech stocks could end up sending the Dow Jones Industrial Average (INDEXDJX:.DJI) higher, extending the already long-lived bull market for a while longer.

The article Tech Stocks Have the Dow Record-Bound Again originally appeared on is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Cisco Systems, Google, and Intel. The Motley Fool owns shares of Google, Intel, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.