The stock market today staged a solid rebound after suffering its worst loss of the year on Monday. Apple, Microsoft and Disney boosted the Dow Jones industrials.
XThe Nasdaq composite rallied 1.4%, the S&P 500 rose 1.3% and the Dow Jones Industrial Average gained 1.2%. Small caps tracked by the Russell 2000 rose 1%. The bounce back was welcome after Monday's big rout, though preliminary data showed lighter volume on the NYSE and Nasdaq vs. Monday.
Stocks opened higher after China's central bank fixed the yuan at a higher-than-expected level. The key indexes eased during the session but extended their gains into the close. But the market remains in a correction.
The Dow Jones index snapped a five-session losing streak after finding critical support at its 200-day moving average, while the S&P 500 and Nasdaq stopped their losses at six session. The Dow is up 11% for the year, while the S&P 500 and Nasdaq hold respective year-to-date gains of 15% and 18%.
Nike (NKE), Cisco Systems (CSCO), United Technologies (UTX) and Walt Disney (DIS) led the blue chip winners with gains of 2% or more. Disney, which slid below its 50-day Monday, fell hard in after-hours trading after the company reported disappointing earnings.
Apple (AAPL) and Microsoft (MSFT), up 1.9% each, also regained (or nearly regained in Apple's case) their 50-day lines after breaking support Monday.
Tech Stocks Bounce Back
Tech ETFs scored some of the biggest gains. Technology Select Sector SPDR (XLK) rose 1.7% and VanEck Vectors Semiconductor (SMH) advanced 1.6%. They were among Monday's biggest losers.
Gaming software, aerospace and retailers led the industry groups rising in today's stock market. But energy and food stocks lagged.
Take-Two Interactive Software (TTWO) gapped up to an 8% gain to resume its advance after Monday's 5% tumble. Video game stocks fell sharply that day after President Donald Trump and other politicians cited violent video games as a reason behind recent mass shootings. After the close Monday, the publisher of the Grand Theft Auto and Red Dead Redemption video game series posted quarterly results that smashed views.
Over in the IBD 50, Universal Display (OLED) rallied 5.4% to stem a five-session slide. During Friday's market rout, shares dropped close to a 177.05 buy point cleared June 18. They're now 15% above the entry.
Aerospace/defense stock Heico (HEI) surged 5.5% to recoup Monday's loss and then some. Shares found support at the 50-day line Monday and are now back above a 139.35 buy point of a three-weeks-tight pattern.
Other IBD 50 winners included building products maker MasTec (MTZ), up 4% to a new high. Brazilian payments firm PagSeguro Digital (PAGS), Planet Fitness (PLNT) and Lululemon Athletica (LULU) added about 3% apiece.
The Innovator IBD 50 ETF (FFTY) rebounded 2.2%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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