In a day dominated by big-name technology stocks, the Nasdaq composite roared to a record high.
The Nasdaq closed with a gain of 2.2%, as some of its largest components — including Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT) and Intel (INTC) — rallied on earnings reports.
The S&P 500, where all those stocks also have a home, climbed 0.8% and also hit a new high. The Dow Jones industrial average lagged with a 0.1% increase. Merck (MRK), off 6% after its earnings report, and Chevron (CVX), which cut its capital spending plans and slid 4%, dragged on the Dow.
While technology heavyweights Amazon, Apple (AAPL), Facebook (FB) and Alphabet cleared buy points or solidified breakouts, many other top-rated stocks also were breaking out.
Humana (HUM) broke out of a cup-without-handle base, closing near the 259.86 buy point.
IBD's TAKE: Cup-without-handle breakouts can be just as good as those stocks clearing a cup with a handle. Read more about the former in this Investor's Corner column.
There was no news specifically on Humana. The health insurer in February dropped a merger with Aetna (AET), which the Wall Street Journal reported Friday is in talks to be acquired by CVS Health (CVS).
The news seemed to affect other medical stocks. Hospitals, drug wholesalers and medical supply companies were mainly lower.
WellCare Health Plans (WCG), another health insurer, rose above the 184.98 buy point of a flat base. The company reports earnings Tuesday before the market opens.
ResMed (RMD) broke out of another flat base, sailing above the 81.97 entry in more than triple the usual volume. ResMed, which specializes in products for respiratory disorders, beat profit expectations with quarterly earnings of 66 cents a share and a 13% rise in sales to $523.7 million. Shares surged 7%.
Granite Construction (GVA) surged from a cup-with-handle buy point of 60.33 in big turnover. The materials and heavy-construction company beat profit estimates.
Solar energy stocks also led the market after First Solar (FSLR) soared on third-quarter results that crushed estimates. First Solar's sales jumped 60% to $1.09 billion, and adjusted earnings of $1.95 a share were up 64% from a year ago.
WTI crude oil futures jumped 2.5% to $53.98 a barrel.
The retail sector was another lagged after J.C. Penney (JCP) shares sold off 16% in huge volume, to all-time lows. The department-store chain warned of a much bigger Q3 loss and slashed its full-year profit forecast.
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