The Nasdaq and S&P 500 rallied to record highs in the stock market today on fresh China news, while Apple and Goldman Sachs boosted the Dow Jones Industrial Average.
XThe tech-heavy Nasdaq rallied 1%, the S&P 500 rose 0.7%, and the Dow Jones industrials added 0.3%. Small caps tracked by the Russell 2000 gained 0.5%. Unofficial data showed volume rising around 5% on both main exchanges vs. Friday.
Stocks extended gains midday following reports that the U.S. plans to remove China from a list of currency manipulators. The Treasury Department in August had labeled China as a currency manipulator. The news comes ahead of a phase-one trade deal between the two countries, expected to be finalized this week.
The Dow Jones index lagged as UnitedHealth Group (UNH), down more than 3% in heavy volume, weighed. But Apple (AAPL), Cisco (CSCO) and Dow Inc. (DOW) rose 1.7% to 2.1% each.
Apple led with a 2.1% gain to a record high in its fourth straight advance. Shares are far extended from a 221.47 buy point cleared in September. D.A. Davidson reiterated a buy rating and raised its Apple price target to 375 from 300, citing the upcoming 5G wireless upgrade cycle.
Goldman Sachs (GS), which reports Q4 earnings Wednesday before the open, also marked a new high. Other big banks reporting this week include Citigroup (C), JPMorgan (JPM) and Wells Fargo (WFC).
Automakers, meat products and software stocks led the upside among the 197 industry groups tracked by IBD. Discount retailers, gold miners and biotechs lagged.
Tesla Cruises Along
Tesla (TSLA), one of the top performers in the Nasdaq 100, surged 10% to a record high in fast turnover. Shares are sharply extended from a 366.85 buy point of a cup with handle cleared in December. Oppenheimer boosted its price target to 612 from 385, citing among reasons the electric-auto maker's ability to take big risks, innovate and learn from its mistakes.
Chinese stocks were on the move in the IBD 50, thanks to the China news. Momo (MOMO) soared 9% in busy trade, nearing a 41.60 buy point of a 40-week-long consolidation, MarketSmith chart analysis shows. Alibaba (BABA) gained 3% to a new high. China delivery service ZTO Express (ZTO) and New Oriental Education (EDU) added more than 2% each.
Lululemon Stretches Higher
Other big IBD 50 winners included Lululemon (LULU), up 4.4% in heavy volume to a new high. The yogawear retailer raised its Q4 earnings and sales guidance, thanks to strong holiday sales. Lululemon, also on IBD Leaderboard, is in potential buy range from a three-weeks-tight add-on entry of 234.60.
Financial software makers Paycom Software (PAYC) and Paylocity (PCTY) each rose about 3% to all-time highs.
The Innovator IBD 50 ETF (FFTY) advanced 1.2% to stretch its win streak to six sessions. Shares climbed past a 36.18 buy point of a long cup with handle. The ETF is trading at its highest level since October 2018.
In IPO news, recent new-issue Progyny (PGNY) vaulted 9% to a new closing high. It's just shy of an aggressive buy point of 32.10. The current consolidation is too short to be considered a proper base. The fertility benefits manager is today's IBD Stock Of The Day.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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