Surging techs boosted the stock market today to solid gains as Apple and Microsoft led the Dow industrials and the FANG stocks delivered gains.
XThe Nasdaq rallied nearly 1.2%, thanks to outperforming big-cap tech stocks. The S&P 500 and the Dow Jones industrial average added 0.7% each. Small caps took part in the rally too as the Russell 2000 gained 0.7%. Volume was lower on the NYSE and Nasdaq vs. Friday, according to preliminary data.
Apple and Microsoft were big contributors, as well as most of the FANG stocks. Three of the four — Facebook (FB), Netflix (NFLX) and Alphabet (GOOGL) — each rose 2% or more, while Amazon (AMZN) climbed 0.4%. Alphabet, which was slated to report quarterly results after the close, was down 2% in extended trade.
Apple (AAPL), Microsoft (MSFT) and Boeing (BA) boosted the Dow. Apple, up 3%, marked its fourth straight advance since regaining its 50-day moving average on Wednesday. The stock is starting to build the right side of a steep base after a 39% correction. Shares are still 26% below their Oct. 3 high.
JPMorgan said in a note an acquisition by Apple of a company like Netflix, Sonos (SONO) or Activision Blizzard (ATVI) could make sense for the iPhone, Macbook, Apple Watch and digital services giant. Apple last week leapt 6%, thanks to a better-than-expected quarterly earnings report.
Microsoft also rose 3% after reversing higher to recapture its 50- and 200-day lines. It's working on the handle of a cup base with a 108 potential buy point. Shares fell 4% last week, hampered by a disappointing sales outlook for the current quarter.
Boeing lifted 2% to a new high. The stock is now slightly extended from a 373.80 buy point of a double-bottom base. The jet maker soared 6% last week after reporting strong Q4 earnings results.
Software Rallies In Stock Market Today
Software, health care and food stocks were among the biggest sector gainers in the stock market today. Tech services and building-related groups underperformed.
BioTelemetry (BEAT) led the upside in the IBD 50 with a 5% pop. The stock surged past a 74.83 cup-base buy point in twice normal trade. Shares remain in buy range from the entry. BioTelemetry last week cleared an earlier handle buy point of 70.58, from which it is extended.
Trade Desk (TTD) rose 4%, breaking out past a 149.10 buy point of a double-bottom base. Shares are still in a potential buy zone from the entry. The relative strength line hit a new high Monday, a bullish sign. The digital ad platform reports Q4 earnings Feb. 21 after the close.
IBD 50 software stocks scoring big gains included Atlassian (TEAM) and Paycom Software (PAYC), which rose about 3% each.
The Innovator IBD 50 ETF (FFTY) climbed 0.8% for its fourth straight up session.
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