Dow Jones Soars 215 Points As Stocks Rally; Nasdaq Retakes 50-Day| Investor’s Business Daily

The Dow Jones industrials, S&P 500 and Nasdaq powered higher for a third straight day, although the indexes closed off their session highs Thursday.


The Nasdaq rose 1%, the S&P 500 advanced 0.9% and the Dow Jones Industrial Average added 0.8%. Small caps underperformed, with the Russell 2000 up 0.5%. Preliminary data showed higher volume on the NYSE and Nasdaq vs. Wednesday, after declines in trading in the prior two sessions.

Among ETFs, Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100 index, rose 1% to reclaim its 50-day moving average. SPDR Dow Jones Industrial Average (DIA) and SPDR S&P 500 (SPY) gained 0.9% each.

Cisco (CSCO), up 7% to lead the Dow Jones stocks, retook its 50-day line with authority. The gap-up above the line set up a follow-on buy point, though all purchases are highly risky with the market in correction.

The networking giant late Wednesday reported fiscal Q3 earnings and sales that beat views. It also delivered current-quarter profit guidance that met forecasts, and a better-than-expected revenue outlook.

Other big movers on the Dow Jones index included Boeing (BA) and Microsoft (MSFT), up more than 2% apiece. Boeing remains 20% off its high and is still under its 200-day line, while Microsoft is just 2% below its recent peak.

Software, meat products and solar led the upside among industry groups in the stock market today. But telecom, gold miners and chip stocks lagged.

IPO, Software Stocks Soar

The meat products group got a big boost from recent IPO Beyond Meat (BYND), which rallied 7% to a new high. At about 93, the stock has nearly quadrupled from its May 2 offering price of 25. On Wednesday, it cleared the 85.55 buy point of a short IPO base.

Zoom Video Communications (ZM), another recent IPO, popped 5% to a new high. The Leaderboard stock is extended from a 74.27 buy point of a narrow IPO base. It’s surged more than 130% from its April 18 debut.

Telecom stocks got slammed as the U.S. put Huawei on a blacklist in the ongoing U.S.-China trade war. Lumentum Holdings (LITE) and Acacia Communications (ACIA) were among the hardest hit as they lost 12% and 6%, respectively.

Over in the IBD 50, PagSeguro Digital (PAGS) soared 8% to rise above its 50-day moving average in twice normal trade. The stock leaped near a 31.74 buy point. After the close Tuesday, the Brazilian payments company’s Q1 earnings and revenue missed analyst forecasts. PagSeguro reported a 70% jump in total payment volume and added 1.3 million active merchants, up 42.5%.

Among other IBD 50 winners, ProPetro Holding (PUMP) gained 7%. Four software stocks: HubSpot (HUBS), Upland Software (UPLD), Paycom Software (PAYC) and Qualys (QLYS) added about 4% or more apiece.

Kirkland Lake Gold (KL), down 1.1%, was one of the few losers. The gold miner’s stock is testing support at the 50-day line as it builds a base with a 36.85 potential entry.

The Innovator IBD 50 ETF (FFTY) advanced 1.6% to retake its 50-day moving average for the first time this week.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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