April Webinar RegistrationApril Webinar Registration


Stock Market Just Won't Quit; China Optimism, New Boeing CEO, Pace Gains

The stock market continued its solid December run Monday, as all major exchanges took part in the late-year rally after China said it would buy more U.S. farm products. That, along with recent solid gains for all major indexes, put investors in a cheery holiday mood in the stock market today. Gains for Boeing (BA) and Apple (AAPL) helped propel the lagging Dow to new highs.

X

The Dow Jones Industrial Average bounced back solidly, adding 0.3%, while Nasdaq gained 0.2%. The S&P 500 Index moved up 0.1%. The small-cap Russell 2000 index, down much of the morning, turned around and tacked on 0.1%.

Volume was down sharply, as the end-of-the-year holidays loomed. NYSE turnover plunged 49% vs. the same time Friday, while Nasdaq trade dropped 19%. Monthly and weekly options stock and index options expired on Friday, boosting trading volume that session.

The big winner on the Dow was Boeing, which leapt 2.9% Monday after the planemaker's board fired CEO Dennis Muhlenberg for his handling of the company's costly 737 Max jet crisis, which led to unusual public criticism of the aerospace giant by the FAA.

Continuing Rise For Apple

Apple continued its move to new highs, gaining 1.6% as Wedbush raised its price target to 350 from 325.

Apple stock broke out of a lengthy cup with handle base in August, ran up briefly, and then set up a flat base with a 221.47 buy point. It broke out from that base on Sept. 11, and is now roughly 28% higher.

Apple's rise has been boosted by sales of its new iPhone 11 and by the start of its streaming service.

Another Dow stock, Cisco Systems (CSCO), jumped 1.4% as it continues its rebound from a near six-month decline in its share price. Cisco's beaten down shares have recaptured their 50-day moving average, and are now just below a 48.95 alternative entry out of a three-weeks tight pattern.

But Disney (DIS) held the Dow back from even bigger gains, falling 1.5% on less-than-expected box office for the entertainment giant's hoped-for blockbuster, "Star Wars: The Rise Of Skywalker." The third in the trilogy disappointed at the box office on its opening weekend. With the drop, Disney stock is now trading nearly 2% below its 147.25 buy point.

Stock Market: In The Chips

Chip stocks continued to impress among the Nasdaq 100, but electric car and battery maker and recent IBD Leaderboard addition Tesla (TSLA) topped all performers. It bolted ahead 3.4% and is now at a new high after breaking out more than a year ago. Tesla stock has gotten a shot in the arm following the introduction of its blocky, futuristic electronic truck concept.

Chipmaker Advanced Micro Devices (AMD) surged 3% to a new high. Advanced Micro stock emerged from a cup base with a 35.65 buy point in early November, and quickly ran up from there. In December, it shaped a three-weeks-tight pattern, yielding a 41.89 alternative entry, but it's now extended even beyond that.

Skyworks Solutions (SWKS) stock continued its recent surge, tacking on 1%. The maker of analog chips and other gear has risen 13 of the last 14 trading days. The stock is up 19% since its close on Dec. 6.

Xilinx (XLNX) rose 1.2%, resuming its comeback after two-straight quarterly earnings disappointments, including a disappointing 8% EPS gain during the most recent quarter. Xilinx stock has regained its 50-day moving average, but still remains well below its peak price of $133 a share in late July and still must form an actionable base.

Dutch maker of chip fabrication equipment ASML (ASML) grew 0.9%. After rising out of a flat base with a 234.60 buy point in September, ASML stock is now extended.

Gains For IBD 50 Software Names

Meanwhile, among IBD 50 stocks, software names continued to shine.

Cloud-based payroll and personnel software company Paycom (PAYC) rose 0.6%, and remains in a buy zone after breaking out of a cup base with a 259.81 buy point in late November.

Design and publishing software powerhouse Adobe (ADBE) increased 0.4%, pushing it above its buy zone. It was just last week that Adobe broke out over its 310.10 proper buy point from a new cup-with-handle base.

Workflow and productivity software name ServiceNow (NOW) also rose, up 0.2% as it builds the right, upward-sloping side of a lengthy consolidation pattern. It still remains about 6% below its 303.27 buy point, however.

The stock got discussed in today's IBD Live show.

Security software provider Fortinet (FTNT) rose 0.8%. It recently formed a 3 weeks tight with a correct buy point at 106.10.

Among exchange traded funds, the Innovator IBD 50 ETF (FFTY) eased slightly in the early afternoon.

Chinese Stocks Also Take Flight

With China trade on investors' minds, it's perhaps not surprising that Chinese stocks also rallied Monday.

The IBD Stock of the Day, Chinese online retailer JD.com (JD), jumped 2.7%, moving above a 35.53 buy point out of a short flat base. IBD 50 names Alibaba (BABA) and New Oriental Education (EDU) also popped on the positive trade vibe.

Alibaba rose 1.3%, and is now extended out of a lengthy cup with handle base after breaking out in late November.

New Oriental stock bumped up 1%. It's now a buying opportunity after a three-weeks-tight formation set up an alternative 124.50 entry.

YOU MAY ALSO LIKE:

Be Wary Of Santa Claus Rally Gifts: Futures

See The Best Stocks To Buy And Watch

Track Daily Stock Market Action With The Big Picture

IBD's ETF Market Strategy

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