Tech stocks boosted the Nasdaq composite to a big gain in the stock market today, as FANG component Netflix (NFLX), chips and software firms rallied.
XThe Nasdaq surged 1.3%, the S&P 500 rose 0.7%, and the Dow Jones industrial average added 0.4%. Small caps outperformed, with the Russell 2000 vaulting more than 1.8%. Volume, however, was slightly lower on the NYSE and Nasdaq vs. Friday, according to preliminary numbers.
Most big-cap techs took part in the rally, though they weren't among the Dow's top gainers. Home Depot (HD), Visa (V) and Nike (NKE) led the upside, with gains of more than 1.5% each. Cisco (CSCO), up 0.9%, scored the biggest advance of the blue-chip techs. Apple (AAPL), down 0.3%, fared the worst.
Leisure, biotech and retail stocks were among the biggest sector gainers in the stock market today.
Netflix, up 7%, led the Leisure-Movies & Related group, which going into Monday was ranked a lowly 183rd among 197 IBD industry groups for six-month relative price performance. On Friday, shares popped above the 50-day moving average for the first time since mid-October. The movie streamer won five awards at Sunday's Golden Globes, the most wins from any studio or network.
Netflix added to its 7% Friday surge. At 25% off its 52-week high, the stock has a ways to go before a buy point becomes visible.
Discounters Rally In Stock Market Today
Discount retailers were having a good day too. Five Below (FIVE) soared nearly 7%, closing well above its 50-day line for the first time since November. Ollie's Bargain Outlet (OLLI) leapt 7% in twice its normal trade.
Dollar Tree (DLTR) gapped up and rose 5% to its best level in nearly 13 months. Hedge fund Starboard Value said Monday it has taken a 1.7% stake in the discount chain. The activist investor also urged Dollar Tree to sell its lagging Family Dollar business and replace board members.
Several analysts weighed in with upgrades or positive sentiments about the news. Gordon Haskett upgraded Dollar Tree to accumulate from hold, according to Barron's, while Loop Capital Markets reiterated a buy rating and a 105 price target.
Over in the IBD 50, software makers continued to show recent strength. Five9 (FIVN) surged 8% to clear a 45.68 early buy point. Atlassian (TEAM) soared 7% to break out past an 89.92 cup-with-handle buy point. It remains near the top of a buy zone from the entry. RingCentral (RNG), Fortinet (FTNT) and CyberArk Software (CYBR) advanced more than 4% each.
Also in the IBD 50, Wingstop (WING) soared 7% as it shapes the right side of a base with a 72.11 potential buy point. Other big gainers included Five Below and Netflix.
The Innovator IBD 50 ETF (FFTY) gained nearly 3%.
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