The stock market rose strongly for a second straight session Monday, buoyed by favorable comments by U.S. Commerce Secretary Wilbur Ross about the U.S.-China trade deal. The Dow Jones Industrial Average soared to a new high, as oil giants Chevron (CVX) and Exxon Mobil (XOM) earnings beat analysts' estimates and oil prices rose. Meanwhile, Apple (AAPL) continued to hit new highs.
XAmong major stock market indexes, the Dow rose 0.4%, while the tech-rich Nasdaq gained 0.6%. The S&P 5oo index moved up 0.4% and the small-cap Russell 2000 index added 0.5%.
In contrast to recent trading sessions when stocks rose on declining volume, the pace of share trading was robust Monday. Volume on the NYSE exchange increased 4.7%, while Nasdaq turnover grew 4.9%.
Big Oil titans Chevron and Exxon Mobil led the way on the Dow, rising 4.6% and 3%, respectively. Both stocks last week reported weaker quarterly earnings than the same quarter last year, but the EPS declines were less than expected. They got a strong boost from a second day of rising oil prices. New York Mercantile spot crude was up 4.2% from its low of $54.26 a barrel on Friday.
IBD Leaderboard stock Apple rose 0.7%, continuing its strong upward move following a Sept. 12 breakout from a flat base with a 221.47 buy point.
Also on the Dow, Walgreens Boots Alliance (WBA) continued to rise after reporting better-than-expected quarterly EPS last week, and announced plans to increase its cost-cutting plans from $1.5 billion to $1.8 billion. It rose 4%. Walgreens stock has consistently sat below its 200-day moving average since this year's first quarter. With Monday's big move, Walgreens stock easily cleared the 200-day line, a bullish sign.
With the China trade news, U.S.-listed Chinese shares were among the winners on IBD's stock lists.
Stock Market: Chinese Stocks Up On Trade Optimism
Among the IBD 50 list of top growth stocks, New Oriental Education & Technology (EDU) rose 1.9%. It's now near the top of the 5% buy range above a short flat base with a 115.98 entry.
Game livestreaming platform Huya (HUYA) surged 6.8%, as it recaptured its 50-day moving average. Huya broke out of a double-bottom base on Sept. 20, but failed to stay in the buy zone.
Online Chinese retailing giant Alibaba Group (BABA) jumped 1.8%. The stock emerged from a cup with handle base with a 195.82 buy point in June, but has since gone mostly sideways as it consolidates. Alibaba stock carries an 85 Composite Rating from IBD.
Chinese social media platform Momo (MOMO) gapped up 9.8%, but remains 27% below its high set in June 2018 and still needs to build a base.
E-commerce software maker Baozun (BZUN) added 2% as it struggles at the bottom of a 16-week consolidation pattern with a 56.57 buy point. It has repeatedly tested both its 50-day moving average and 200-day average lines, but has yet to definitively recapture either.
Meanwhile, another Chinese retailer, JD.com (JD), jumped 5.2% and broke out of a consolidation base above a 32.48 buy point. With an 88 RS rating, JD stock awaits earnings expected on Nov. 15.
Stocks On The Move
Among IBD's Stocks on the Move, Israeli medical technology company and IPO InMode (INMD) gapped up 5.8% with earnings due on Tuesday. It scores a 99 Composite Rating and is at a new high.
High-end printer maker Zebra Technology (ZBRA) advanced 4.4%, breaking out of a lengthy consolidation above a 237.25 buy point.
Building infrastructure company Mastec (MTZ) continued its winning ways, also rising 4.4%. It broke out of a base on Aug. 2, and never looked back. It's now 33% extended in price and eligible for profit-taking.
OLED display leader Universal Display (OLED) added 1.4% as it continues to build the right side of a cup base with a 230.42 buy point. Universal Display has a 95 Composite Rating from IBD.
Among exchange traded funds, Innovator IBD 50 (FFTY) dipped 0.1%.
Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.
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