U.S. stock indexes rumbled higher near midday Tuesday as the Nasdaq bounced off its 50-day moving average. Noise on tariffs appeared to have little effect on stocks.
XThe Nasdaq rose 1% while the S&P 500 and the Dow Jones industrial average advanced 0.6% and 0.5%, respectively. Small caps added 0.4%, as gauged by the Russell 2000.
Volume increased on both major exchanges vs. the same time Monday.
In the IBD 50, a list of the best stocks in fundamentals and technicals, winners led losers by a 7-1 ratio. Netflix (NFLX) climbed 3%, retaking its 50-day line.
Other IBD 50 stocks rising included health savings account provider HealthEquity (HQY), up 2.5%; Mastercard (MA), up 1.5%; and Apple (AAPL), up 1%.
New Tariffs
Early Monday evening, the U.S. imposed new tariffs on $200 billion in Chinese goods. China responded with tariffs on $60 billion in U.S. goods. The New York Times noted that the $60 billion covers nearly everything China buys from the United States. The Times says China is running out of options.
This could explain, at least partly, why the stock market isn't panicking.
Blue Chips Mostly Up
Blue chips were mostly up Tuesday, including some stocks with China exposure. Dow components with heavy China exposure include Apple, Caterpillar (CAT), Nike (NKE) and Boeing (BA).
In the Nasdaq 100, Micron Technology (MU) popped 4% in twice its usual volume. The stock is 29% off its high. Micron is based in Boise, Idaho, but about 51% of its revenue is tied to China.
Breakouts were scarce, but a stock that has never posted an annual profit gapped up 95% in huge volume.
San Diego-based biomed Vikings Therapeutics (VKTX) had formed a cup-with-handle base with a 13.47 buy point.
The stock roared to 24 and then pulled back to just under 20. The small-cap company reported positive results from a trial of a drug for nonalcoholic fatty liver disease.
Among IBD's 197 industry groups, oil-tied groups had the most gainers in the day's 12 top performers.
Meat, dairy and packaged foods took the hardest hits.
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