Stocks launched into the holiday-shortened trading week Tuesday in a rally that sent the Dow above 26,000, barely two weeks after its first foray above the 25,000 mark.
X The Dow Jones industrial average bolted 0.8% higher, with Merck (MRK) and UnitedHealth Group (UNH) hammering out powerful early gains.
The Nasdaq Composite scaled up 0.7%. S&P 500 futures were 0.6% higher.
Overseas, Hong Kong's Hang Seng index punched up 1.8% Tuesday to a record closing high. It remained just a fraction below its 2007 record peak. In Japan, Tokyo's Nikkei 225 followed with a 1% gain, putting the index almost even with its Jan. 9 high.
In Europe, Frankfurt's DAX rallied 0.8% and the the CAC-40 in Paris traded up 0.2%, while London's FTSE 100 slipped 0.3% in afternoon action.
Merck, United Health Lead Dow; China Stocks Climb
Merck jumped out to a broad early lead among blue chip stocks, up 5.2% after announcing that its Keytruda produced positive results in a phase 3 trial as a first-line treatment against lung cancer. Merck shares closed last week up 9% from a mid-November low, climbing the right side of a four-month consolidation.
UnitedHealth Group (UNH) reported a strong fourth-quarter performance and popped 2% at the open. The gain put the stock in a buy range, just above a flat base buy point at 231.87.
Apple (AAPL) climbed 0.4%, as it continues to wrestle resistance near 177, but remains in buy range above a 176.34 buy point.
Netflix (NFLX) led the rising FANG stocks, up 1.8% as it adds more margin above its 204.48 buy point.
A number of China-based stocks were in motion ahead of the open. Top names including Baidu (BIDU) rose 3% and Alibaba Group Holding (BABA) posted an early gain in the 2% range.
Baozun (BZUN) surged more than 3%, giving the provider of online retail services a breakout past a 37.07 buy point in a double-bottom base.
Big banks were part of Tuesday's positive news, with Comerica (CMA) up 1.3% after reporting its fourth-quarter results. Comerica shares are extended, in a profit-taking zone following a September breakout.
Citigroup (C) powered 1.4% higher, after reporting fourth-quarter earnings and revenue above analysts' targets. The advance sent shares into a buy range above a 78.02 flat base buy point.
Bitcoin Falls Further
Bitcoin traded just below $12,000, 14% below its price late Friday. Stocks associated with cryptocurrencies and blockchain were also under early pressure:
- Riot Blockchain (RIOT): down 7.5%
- Mara Patent Group (MARA): down 9.7%
- Bitcoin Invstment Trust (GBTC): down 9.1%
- Overstock.com (OSTK): down 7.1%
- Eastman Kodak (KODK): down 12%
N.Y. Manufacturing Slows; After Hours Reports
Manufacturing growth slowed slightly in the New York region in January, sending the New York Federal Reserve Bank's Empire State Manufacturing Survey to 17.7, down from a reading of 18 in December and below economist targets of 19.
The report said growth in shipments and new orders slowed, employment increased slightly, and both input and selling price growth accelerated, as prices rose for a second straight month.
Adtran (ADTN), railroad CSX (CSX) and Pinnacle Financial (PNFP) are all scheduled to report after today's close.
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