The stock market continued to eke out gains late Monday. Stocks were mostly higher as investors await the outcome of this week's Federal Reserve meeting and looked to U.S.-China meetings later this month for a possible breakthrough on trade.
XThe tech-heavy Nasdaq increased 0.7%, while the S&P 500 added 0.2%. The Dow Jones Industrial Average grew 0.2%. The small-cap bellwether Russell 2000 Index rose 1.1%.
Volume remained mixed. NYSE volume declined, while Nasdaq volume edged up.
A number of Dow stocks continued in or near buy zones after recent gains.
Home improvement giant Home Depot (HD) rose 2.5%, as it continued to move out of a cup with handle. It's now 1% below its 209.39 buy point.
Software icon Microsoft (MSFT) broke out of a five-week flat base past its 131.47 buy point, rising 0.4%. It's now in the buy zone. Analysts expect an 18% rise in earnings per share this year. Microsoft stock got a big boost by its recent announcement of its next generation, cloud-based Xbox gaming console, dubbed Project Scarlett.
Drugmaker Merck (MRK) rose 0.5%, continuing its gains after leaving a seven-week cup with handle. It's now about 3% above the buy point of 80.24. In April, Merck stock briefly fell below its 200-day average on heavy volume but rallied after reporting a 16% gain in EPS for its first quarter, well above analyst estimates.
Meanwhile, Disney (DIS) stumbled 0.4%, after briefly breaking out last Thursday as its relative strength line hit a new high, a bullish sign. However it has since then mostly traded below its 142.47 buy point. Imperial Capital downgraded Disney on Monday.
Elsewhere, the widely followed FANG group of stocks continued to gain. Facebook (FB) added 3.8%, while Amazon.com (AMZN) moved up 0.9%. Netflix (NFLX) gained 3%, while Alphabet's Google (GOOGL) rose 0.6%.
Apple (AAPL) rose 0.8 %. Apple gained nearly 37% by April after last December's meltdown. But after reporting a disappointing 10% decline in Q1 EPS, Apple shares sold off. It now has a string of three straight higher weekly closes under its belt, but remains 10% below its 215.41 buy point.
In other stock action, yogawear pioneer Lululemon (LULU) gapped up 4.2% as it continued its breakout from a six-week flat base above a 179.60 buy point.
Lab-testing provider NeoGenomics (NEO) continued its recent gains, adding 4.6% to remain well above its 23.95 buy point.
Another medical name, Cardiovascular Systems (CSII) gapped up 5.8% and is now 3% above its 41.29 buy point coming out of a cup with handle.
Continuing the biotech theme, Repligen (RGEN), a maker of consumable bioprocessing products for life sciences firms, surged 4.8%. It's now 5% extended above its 70.60 buy point after breaking out of a 24-week cup base.
Among exchange traded funds, Innovator IBD 50 ETF (FFTY) rose 0.3%, continuing above its 50-day moving average.
The market's had plenty of news to chew over. The Fed's two-day meeting will begin Tuesday and test the market's patience. Fed funds futures show a 25% probability of a quarter-point rate cut this week. Meanwhile, the New York Federal Reserve Bank reported its Empire State factory conditions index posted its biggest decline ever in June.
In addition to upcoming talks between President Trump and Chinese President Xi Jinping at the G-20 summit, investors are also eyeing the outcome of the Paris Air Show. Airbus (EADSY) won 27 orders for its new A321XLR jet, 23 orders for its A321neos, and 50 A220-300s jets from Air Lease (AL). The deal could be as high as $11 billion.
Airbus rose 2.4%.
Troubled Boeing (BA), still struggling to get its 737 Max jet flying again after two deadly crashes, is using the trade show to highlight its new midsize jet, dubbed the 797. Boeing was up 2.4%.
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