Stocks Extend Bounce As Dow Climbs 1.7% | Stock News & Stock Market Analysis

Stock indexes rallied into the close Monday, extending a bullish reversal that began on Friday.

The Dow Jones industrial average led with a 1.7% gain. Dow component Microsoft (MSFT) rose about 1% and gained a better footing above its 50-day moving average. Microsoft had penetrated below its 50-day average last week, but not sharply.

X If the broad market can continue to improve, the stock can be considered to be in a follow-on buy area. Other Dow stocks are holding firm at the 50-day line, including Boeing (BA), Cisco Systems (CSCO) and JPMorgan (JPM).

The S&P 500 added 1.4%, the Nasdaq composite nearly 1.6% and the Russell 2000 0.8%. The small-cap index’s lag could be a stain on the market’s bounce because small-caps tend to participate in bottoming moves.

Volume was sharply lower compared with Friday’s trading. That suggests a lack of institutional investors trying to keep the rebound going. But breadth was comforting, with advancers over losers by 7-to-2 on the NYSE and by 17-to-9 on the Nasdaq.

Energy, airline, steel and mining stocks were some of the ones spearheading the advance. The Philadelphia Semiconductor Index jumped 1.9%, contributing to the technology sector’s strength.

Leisure, a sector that had been leading the market, performed poorly as casino and toy industry groups lagged. Retail, a sector that had recovered much of its 2017 losses, was broadly weaker Monday. Discount, and grocery chains were off 0.5% to 1.2%.

Oil prices rose slightly to close at $59.28 a barrel. OPEC forecast higher oil demand, but it also sees non-OPEC production rising by 1.4 million barrels per day, up by 250,000 from its January report. U.S. production will lead the growth, the oil cartel said.

President Trump’s infrastructure program is generating headlines, but not much movement in related stocks.

Heavy construction services provider Jacobs Engineering (JEC) rose more than 1% in unusually heavy volume but remained below the 50-day moving average. Bank of America raised its price target on the stock to 70 from 62 Thursday. The company reported earnings the previous day.

HealthEquity (HQY) topped the 52.53 buy point of a handle in a choppy cup-type base. Volume was well above average, a good sign for the breakout. But market risk is still high, despite the bounce in the major indexes. In a risk for the health savings accounts specialist specifically, the stock has not made much progress from the three previous times it broke out past buy points, in January 2017, June and November.


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Originally posted 2018-02-12 22:04:44.


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