April Webinar RegistrationApril Webinar Registration


Stock Market Surges On China Trade, Merger Mania; Nasdaq, S&P Hit Records, Dow Nears One

The stock market continued its rise to new highs to start the shortened Thanksgiving week on a renewed gust of U.S.-China trade optimism that boosted China-related stocks. Merger mania also helped indexes higher, with Tiffany (TIF), eBay (EBAY) and TD Ameritrade (AMTD) all vaulting higher on big deals.

X

Both Nasdaq and the S&P 500 indexes hit new highs, while the Dow rose above 28,000, just below its all-time high. Nasdaq rose 1.3%, while S&P 500 gained 0.8%. The Dow lagged a bit, but still tacked on 0.7%, while the small-cap Russell 2000 index moved up a sharp 2.1%.

Volume was mixed. Turnover on NYSE was basically flat, while Nasdaq trading jumped 16.5%.

In merger news, luxury goods purveyor LVMH (LVMUY) announced it's buying legendary jeweler Tiffany for $16.2 billion. Tiffany surged 6% in Monday's stock market.

EBay told investors it will sell its StubHub ticket brokerage to Viagogo for $4 billion, pushing eBay stock up 2%.

In a blockbuster deal, discount broker Charles Schwab (SCHW) announced an agreement to acquire TD Ameritrade for $26 billion in stock. TD Ameritrade shares surged 8%, while Schwab added 2%.


Join IBD experts as they analyze winning stocks on IBD Live every morning. Take a free trial!


Disney's Blockbuster, Tesla's Truck

On the Dow Jones list, Disney (DIS) rose 0.9%, after "Frozen II" earned $130 million domestically over the weekend, the third-highest opening ever for an animated feature.

And Elon Musk's electric car and battery maker Tesla (TSLA) gained 1% after announcing it had booked 200,000 preorders for its new futuristic cyber-truck.

Meanwhile, stocks with heavy exposure to China rose strongly after that country announced new restrictions on intellectual property theft, amid a heavily pro-democracy vote in weekend elections in Hong Kong.

Tech companies, chipmakers in particular, expect to benefit from China's new protections for intellectual property.

Big tech gainers included Nvidia (NVDA) (+4.9%), Intel (INTC) (+2.1%), Qorvo (QRVO) (+2.6%), Micron Technology (MU) (+3.6%), Broadcom (AVGO) (+1.5%), Texas Instruments (TXN) (+1.7%), KLA (KLAC) (+3.1%) and Applied Materials (AMAT) (+4.2%).

Non-tech gainers from the China news included Wynn Resorts (WYNN) (+4%) and Apple (AAPL) (+1.8%), which broke out of a six-week flat base in mid-September over a 221.47 buy point. Apple now sits well extended, just below the 20% take-profit zone.

Stock Market: The Return Of China?

Chinese-linked stocks did well on the IBD 50 list, as well.

Giant online retailer Alibaba (BABA) soared 2%. It cleared a 188.38 buy point coming out of a three-weeks tight formation.

Language training and test prep company New Oriental Education (EDU) jumped 3%. It cleared a 115.98 buy point from a flat base in late October, and is now just extended above the 5% buy zone.

Chinese social-networking platform Momo (MOMO), meanwhile, added 3.7% as it continues to move closer to a potential breakout from a lengthy consolidation pattern.

Israeli-based medical equipment maker and IPO InMode (INMD) surged 14.7% after plunging nearly 16% last week and setting off a sell signal.

Specialty Retailers Shine

Also moving strongly was home furnishings and knickknack retailer RH (RH), formerly known as Restoration Hardware, up 3.4%. RH, with a best-possible IBD Composite Rating of 99, broke out of a 27-week cup above a 157.81 buy point in September, but then moved mostly sideways at the top of the buy zone for almost two months. On Nov. 15, it bounced strongly off its 50-day moving average, rose and now sits in the profit-taking zone.

Another specialty retailer, athletic and yogawear merchant Lululemon Athletica (LULU) gained 1%. The stock is extended from its recent breakout from a flat base with a 204.54 entry.

Also on the IBD 50, software stocks rebounded nicely. Threat-management systems maker Fortinet (FTNT) jumped 1.3%, continuing its recent gains. It has a 98 Composite Rating and ranks No. 1 in its industry. It's now extended from the buy point of a cup with handle base.

Cloud-based personnel software creator Paylocity (PCTY) added 2.3%. It remains in a buy zone above a cup base.

Cloud-based human capital management software name Paycom (PAYC) jumped 1.5%. The company, also with a powerful 99 Composite Rating, is now in a buy zone above a cup base with a 259.81 entry.

Among exchange traded funds, Innovator IBD 50 ETF (FFTY), based on the IBD 50 list of best growth stocks, rose 1.1%.

YOU MAY ALSO LIKE:

After Hours: 5 Notable Earnings Movers

Top Stocks Near Buy Zones With Stock Market At All-Time Highs

Dow Jones Stocks To Buy And Watch For November 2019

Today's IBD Stock Of The Day

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis