Following Friday's trade-related sell-off, today's stock market regained traction Monday after the Treasury Department reassured markets it had no plans to close U.S. capital markets to China. Chinese names rising 1% or more on the news included Alibaba (BABA), New Oriental Education & Technology Group (EDU), and former market standout Baidu (BIDU).
XOther Chinese stocks with less-than-1% gains included JD.com (JD) and Huya (HUYA). Huya broke out of a double-bottom base with a strong 7.6% jump on Sept. 19, only to trigger a sell signal during recent U.S.-China trade squabbles.
Major indexes reflected the stock market rebound after Friday's nasty downturn.
Nasdaq moved up 0.8%, as many tech shares that had been beaten down in recent sessions recovered. The Dow Jones Industrial Average also continued to plow ahead, adding 0.4% as it nears a new high. The S&P 500 tacked on 0.5%. The small-cap Russell 2000 gained 0.3%.
Volume fell on both major exchanges compared with the same time on Friday. Turnover fell 11% on NYSE, and 18% on Nasdaq, as institutions adopted a wait-and-see approach to the latest market rebound.
Online e-commerce giant Alibaba, with an 86 Composite Rating, has emerged from a 65-week cup with handle base with a 195.82 buy point as it struggles to regain its 10-week moving average. It rose 0.8%.
New Oriental Education & Technology rose 4.3% as it seeks to break out of a rare ascending base with a 115.98 buy point. It has a 98 Composite Rating from IBD.
Dow Stocks Power On
Elsewhere, A number of Dow stocks returned to the green, many now above buy points.
Sports apparel marketer Nike (NKE) jumped 1.7%, and remains in the 5% buy zone above an 89.45 buy point from a cup with handle. Nike garners an 83 Composite Rating from IBD and is No. 3 in the apparel and shoes manufacturing group. No. 1 is Skechers (SKX), which rose 2.3%.
Discount retailing behemoth Walmart (WMT) added 0.2%, as it moves steadily upward in a buy zone above a 115.03 buy point from a cup with handle base. Like Nike, Walmart has an 83 Composite Rating.
Another major retailer, hardware discounter Home Depot (HD), rose 1%. It has a 94 Composite Rating, and now is slightly extended above the 5% buy zone over a 219.40 entry from a flat base.
Stock Market: Tech's Rebound
Other Dow stocks posting solid gains included tech and software names Intel (INTC) (1.5%), Microsoft (MSFT) (0.9%), Cisco (CSCO) (1.2%), IBM (IBM) (1.5%), and Apple (AAPL) (2.4%).
Apple benefited from a positive report by JPMorgan. With its rise Monday, Apple, on IBD's Leaderboard, returned to the buy zone above a 221.47 entry from a flat base.
Looking at the IBD 50 list of top growth stocks, many hard-hit software names posted solid gains for the day. Veeva Systems (VEEV), with a 99 Composite Rating and a No. 1 rank in its industry group, added 1.6% as it tries to regain its 50-day moving average within a consolidation pattern.
Australian management software company Atlassian (TEAM), with a 92 Composite Rating but fair-dinkum 99 EPS Rating, gained 2.1%. It too is in a lengthy consolidation trying to regain its 50-day average.
IBD 50 Shows Strength
Meanwhile, an exchange traded fund that reflects the IBD 50 flashed renewed strength. Innovator IBD 50 ETF (FFTY) increased 0.8%, off Friday's three-month low. The companion to that fund, the Innovator IBD Breakout Opportunities ETF (BOUT), added 1.4%.
Other financial markets settled after last week's turmoil. After rising early, the U.S. 10-year Treasury yield finished flat at 1.675%. Prices for gold and silver, traditional investment hedges during troubled times, fell 1.8% and 3.2%, respectively. Crude oil dropped 2.9% as Saudi Arabia continued to bring its damaged oil facilities back online.
Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.
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