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Stocks Close Higher As Tax Bill Heads To Final Vote; Intel Keep Rallying | Stock News & Stock Market Analysis

The stock market closed higher Monday, as Wall Street applauded the swift agreement on Capitol Hill on a tax reform bill that includes a big tax cut for corporations.

X The House of Representatives is expected to vote on the tax bill Tuesday, and the Senate vote could come Tuesday or Wednesday. Final passage is widely expected but is not a certainty. The legislation cuts the corporate tax rate to 21% from 35%.

The Nasdaq composite led with a 0.8% gain, although it closed just below the 7000 level. Strength in internet and semiconductor stocks gave the composite a lead over the S&P 500, which added 0.5%.

The Dow Jones industrial average climbed 0.6%, with Intel (INTC) rising nearly 4% as the stock continued to rally from support at the 50-day moving average. Small caps led as the Russell 2000 and the Dow transports each rose 1.2%.

Volume fell, although it was almost a foregone conclusion following Friday’s quadruple witching session of options and futures expirations. On Friday, Nasdaq volume was 77% higher than Thursday’s trade. Winners led losers by 12-to-5 on the NYSE and by nearly 2-to-1 on the Nasdaq.

Financial, retail and oil industry groups crowded the top of Monday’s performance table. But the Dow utilities slid nearly 1%. Utility industry groups were among the laggards in today’s market.

Dozens of stocks broke out, providing investors with fresh opportunities as the broad market keeps steaming ahead.

SendGrid (SEND) jumped past the 22.31 buy point of an IPO base. The company, which was recently discussed in IPO Leaders, operates a digital communications platform. It is expected to post a profit for 2017.

The investment banking and brokers industry group has surged to the No. 1 rank of the 197 IBD tracks. The one stock to watch Monday was Piper Jaffray (PJC) — it rose to a new high. The stock was already extended from the 73.85 buy point of a cup-with-handle base.

Mercury Systems (MRCY) rose past the 54.59 buy point of a flat base, but closed below the entry. Volume was about 50% above average, which is a sufficient amount to feel good about the breakout. Mercury was discussed in Friday’s Stock Spotlight column, which mentioned the company’s talks to acquire Themis Computer for $175 million.

In retail, auto parts chain Monro (MNRO) broke out from a cup with handle with a 54.50 buy point. The cup base is first stage. Volume was heavy, a good sign.

With chip stocks leading the day, KLA Tencor (KLAC) broke out past the 110.11 buy point of a six-week flat base after KeyCorp upgraded the stock to overweight from sector weight.

KLA’s flat base sits atop a double bottom with handle that produced a 103.07 entry, 10 cents above the handle’s high. As seen in a daily chart, the handle began after shares pulled back on Sept. 20.

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