The stock market started 2020 with a bang as the Dow Jones Industrial Average knocked out a brand-new high with a 330-point gain. The Nasdaq and S&P 500 also made fresh highs.
XThe Nasdaq surged 1.3%, the Dow Jones industrials rallied 1.2%, and the S&P 500 advanced 0.8% in today's trading. Small caps tracked by the Russell 2000 lagged, down 0.4% after paring sharp earlier losses. Preliminary data showed higher volume on both exchanges vs. Tuesday.
Disney (DIS) led the Dow Jones index with a 2.4% jump. Shares reclaimed a 147.25 buy point of a flat base first cleared on Nov. 13. But lower-than-usual volume showed a possible lack of conviction from the big money. The Leaderboard stock, however, successfully tested its 10-week moving average.
Boeing (BA) weighed in with a 2.3% lift, though also in lower-than-usual volume. The plane maker has been trying to recover from a tough 2019 amid ongoing struggles with its 737 Max jet. Analysts expect a 95% drop in 2019 earnings per share.
Apple (AAPL), up 2.3%, is starting the new year at an all-time high. The stock is now more than 30% extended past a 221.47 buy point of a flat base cleared in September. The iPhone maker, which soared 86% last year, triggered the 20%-25% profit-taking rule in November. Investors looking to buy shares should wait for a new entry.
Among other blue chips up nearly 2%, Goldman Sachs (GS) marked a new 52-week high. Intel (INTC), up 1.7%, is trading at its highest level since 2000. It remains in buy range from a 59.23 entry of a cup with handle. Chip stocks rallied late in 2019 on hopes for a U.S.-China trade deal.
Solar, automakers and computer-related stocks were some of the biggest gainers among IBD's 197 industry groups. But department stores, steel and utilities lagged.
Tesla Keeps Cruising
Automakers ranked No. 2, thanks mostly to Tesla's (TSLA) stunning late-year recovery.
Tesla, up nearly 3% Thursday, surged more than 140% from an early-June low to its Dec. 27 high. The Relative Strength Rating is 96, which means the stock's price performance is in the top 4% of all stocks. An A Accumulation/Distribution Rating points to more recent net buying than selling by mutual funds.
Over in the IBD 50, China stocks scored big gains. Social network operator Momo (MOMO) surged 8% to retake its 50-day moving average, while New Oriental Education (EDU) and e-commerce giant Alibaba (BABA) leapt a respective 5% and 4%. Alibaba, extended 12% from a 195.82 cup-with-handle buy point, gapped up to a record high.
Other big IBD 50 gainers included Warren Buffett-backed Brazilian payments firm StoneCo (STNE), up more than 7% to a new high. The Leaderboard stock remains in buy range from an alternate 41.98 entry.
Paylocity (PCTY) surged nearly 5% to a fresh high. The enterprise software maker is in buy range from a 122.75 alternate entry. Universal Display (OLED), ServiceNow (NOW) and Salesforce.com (CRM) added about 3% apiece.
The Innovator IBD 50 ETF (FFTY), which returned 26% last year, rose 1.6%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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