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Stocks End Higher On Irma Bounce; Apple Supplier Takes Buy Point

Stocks held fast to their rebound gains Monday as Asian stock markets launched a global rally that sent broad array of U.S. industries to powerful gains.

X A solemn session marked by remembrances of the 9/11 terrorist attacks that left Americans dead in New York, Washington, D.C., and Somerset County, Pa., saw the Dow Jones industrial average lead, rising 1.2%, vs. a 1.1% gains each for the Nasdaq Composite and the S&P 500.

Preliminary data showed trade was below Friday's levels on both the NYSE and the Nasdaq exchanges.

Before the U.S. open, markets in Tokyo and Hong Kong clocked substantial rallies, boosted by a shift in Chinese currency regulations and relief that North Korea had not tested either missiles or nuclear bombs over the weekend.  That strength carried over to European trade, which saw benchmarks in Paris and Frankfurt end well over 1% higher.


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In the U.S., insurers were among the early winners, with Dow issue Travelers (TRV) and Progressive (PRG) rising more than 2% as Hurricane Irma softened to tropical storm status. The storm pushed north into Georgia and the southern U.S. leaving more than 6 million Floridians without electricity and large portions of the state wind-strafed and waterlogged, but with much less damage than the severe scenarios for which the markets had braced on Friday.

Airlines rebounded: American Airlines Group (AAL) jetted ahead 5%, while Delta Air Lines (DAL) and United Continental Holdings (UAL) bobbed more than 3% each.

Cruise line operators also felt some relief trade, with Carnival Cruise (CCL) and Norwegian Cruise Line Holdings (NCLH) — both based in Miami — up more than 3% at the end of the day.  Norwegian announced it was sending on of its cruise ships on a relief mission to St. Thomas, to pick up 2,000 tourists stranded the by the storm. It had another fully stocked ship standing by in the Gulf of Mexico, ready to deliver supplies to either Key West or Tampa after the storm passed, according to the Miami Herald.

Automakers turned in the Monday's strongest move among industry groups, led by Tesla (TSLA) which snapped more than 5% higher to finish within 2% of a 370.10 buy point in a cup-with-handle base. Tesla had reportedly release a software update to Florida Tesla owners on Saturday, extending slightly the battery charge range of vehicles as an assist to those evacuating ahead of the storm.

Apple (AAPL) of course made its splash for the day, thundering ahead 1.7% in rising trade ahead of its annual product release event, scheduled for Tuesday. Apple shares remain in a buy range, above a 156.75 buy point.

On the IBD 50 list, Laser maker Coherent (COHR) led, rising nearly 5% in light trade and retaking support at its 50-day moving average. A five-week advance has lifted the stock 18% from an early August low, and up the right side of a two-month cup base.

Universal Display (OLED), maker of organic light emitting diodes purportedly used in the new iPhone Apple is expected to introduce on Tuesday, roared ahead more than 3% in strong trade. The move retook a double-bottom base buy point at 127.87, and left the stock in a buy range.

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