Stocks held modest gains in afternoon trading Tuesday, as Tesla (TSLA) moved higher, along with oil prices and airlines.
The Dow Jones industrial average and S&P 500 rose 0.4% each, while the Nasdaq, weighed down by ailing biotechs such as Alexion Pharmaceuticals (ALXN), was up 0.1%. Volume was tracking higher on both major exchanges vs. the same time Monday.
Automakers, airlines and oil stocks led the upside in the stock market today, as West Texas Intermediate crude prices rose nearly 1% to climb back above $50 a barrel.
Tesla rallied more than 5% to retake its 50-day moving average in fast trade. Billionaire investor and Baron Capital CEO Ron Baron told CNBC the electric car maker could become one of the biggest companies in the world.
Hawaiian Holdings (HA), which late Monday reported a 4.9% increase in May passenger traffic, soared 5% in above-average volume. The Hawaiian Airlines parent's load factor rose 3.8 percentage points to 84.3%. The stock is back in buy range from a 40.23 entry cleared in February, but it was up more than 20% from that level in April.
Among other carriers, Skywest (SKYW) rose 5%, Spirit Airlines (SAVE) 4%, and American Airlines Group (AAL) and United Continental (UAL) more than 3% each.
United Natural Foods (UNFI) jumped 15% in hefty turnover and notched a six-month high as it regained its 200-day line. United Natural Foods' shares are still well below their March 2015 highs. Late Monday, the food distributor reported mixed fiscal Q3 views but guided its full-year earnings and sales forecasts higher.
Zillow Group (Z) gapped up and surged 6% in fast trade to its highest level in nearly eight months. Late Monday, the real estate information site said it will pay $130 million to settle a trade-secret lawsuit, which had been seeking $2 billion in damages.
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IBD 50 stocks on the move included mobile home maker Thor Industries (THO), up 6%; discount retailer Five Below (FIVE), up 4%; and pet food maker Blue Buffalo Pet Products (BUFF), up 3%.
Biotechs, gold miners and other medical stocks lagged.
Alexion Pharmaceuticals gapped down and sank 11%, dropping below its 50-day line in heavy volume. Shares are 33% off their 52-week high. The biotech said late Monday its Soliris drug missed the primary endpoint of a late-stage trial for patients with a rare neuromuscular disorder.
