April Webinar RegistrationApril Webinar Registration


Nasdaq Leads Bullish Recovery; Viacom, Tesla, DuPont Show Strength

X

Stocks snapped back from a heads-down opening Monday, as the leading indexes all found support at their 50-day moving averages.

The Dow industrials and the S&P 500 each dived 0.9% at the open and the Nasdaq dropped 1%. The Nasdaq reversed within the first half hour, ending ahead up 0.2% on the stock market today. The Dow industrials and S&P 500 trimmed losses aggressively, ending down 0.2% and 0.1%, respectively.

Small caps also rebounded, lifting the Russell 2000 to finish with a 0.2% gain.

The failure in Congress to push through a health care reform last week, ending in a canceled vote last Friday, caused stocks to adjust to continuation of the Affordable Care Act "for the foreseeable future," as described by House Speaker Paul Ryan. Stocks also valued in some reaction to an altered view on the White House's ability to marshal support for legislative priorities.

Among industries, generic drug makers and hospital operators posted the session's best gains. The No. 2-ranked telecom fiber optics group and gold miners were also among the day's leaders. Oil drillers and services companies, and office supplies retailers posted Monday's worst declines.

Key players in the Nasdaq's reversal were medical software maker Cerner (CERN) and biotech Regeneron Pharmaceuticals (REGN).

Cerner jumped 3% in strong trade, giving the stock some breathing room above its 10-week line as it climbs the right side of a seven-month consolidation. Regeneron swung up 3% in above-average trade, although shares remain in a long-term consolidation.

By the end of the day, Viacom (VIAB) was leading the Nasdaq 100, up 3% in average volume. Tesla (TSLA) also made one of the index's top-five moves, up nearly 3% in moderate trade as it starts the sixth week of a consolidation.

Among the Dow industrials, DuPont (DD) was the session winner, up 1.2% on news that the European Union had granted provisional approval to DuPont's planned $77 billion merger with Dow Chemical (DOW). Dow shares popped 1.5%.

At the low end of the Dow, Chevron (CVX), Goldman Sachs (GS) and Verizon (VZ) all booked declines of more than 1%.

Among IBD 50 stocks, patient monitoring systems provider Biotelemetry (BEAT) pulsed up 6% in heavy trade, just enough to hoist shares to a new high.

Laser manufacturer Coherent (COHR) knocked out a 3.5% gain but remained in buy range above a 200.63 flat-base buy point.

After the close, Digital Ally (DGLY), Raven Industries (RAVN) and Red Hat (RHT) are among the handful of companies expected to report quarterly results. Dennis Kaplan, President of the Dallas Federal Reserve Bank, is scheduled to speak at 6:30 p.m. ET this evening.

RELATED:

RyanCare Flop Lifts Anti-TRump Trades In Health, Gold Stocks

Hot Stocks In Buy Range Ahead Of Reports: Investing Action Plan