The Dow Jones Industrial Average rose in today’s market, recovering some of its losses from last week. Technology stocks led the upside as investors’ concerns over inflation appear to be receding. Over the past hour, the major indexes all held near their highs of the day.
Dow Jones In Stock Market Today
At around 1:30pm ET, the Nasdaq composite held a gain of 1.5%. The S&P 500 traded 1.1% higher. The Dow Jones industrials held a gain of 0.7% while the small-cap Russell 2000 index rose 0.4% after paring earlier gains. Volume was lower on both the NYSE and the Nasdaq vs. the same time on Friday.
The major indexes positive reversal this week follows last week’s declines amid fears of rising inflation. IBD’s market outlook was downgraded to “uptrend under pressure” earlier this month, after the Nasdaq hit its lowest level in six weeks.
However, stocks appear to be reversing higher this week as the Dow Jones and S&P 500 continue to rebound from their 50-day support levels, on pace to extend win streaks to three sessions Monday. The Nasdaq is attempting to regain this key area of support still.
Stocks In The News
Virgin Galactic (SPCE) rose as much as 21% after successfully landing a powered test flight of its SpaceShipTwo space plane on Saturday. Shares regained their 50-day line after gapping up in heavy volume. The stock should not be added to your portfolio at this time as shares maintain a low RS Rating of 9 and are no where near a buy zone. But the space stock is definitely one to add to your watch list.
Shares of computer software company CommVault broke out from a consolidation with a 72.43 buy point. The stock rose nearly 5% and remains inside they key buy area. Elsewhere, Nvidia traded inside a cup-based buy area with 615 buy point. But investors should note the stock already broke out in early April and has since triggered the 7%-8% sell rule.
Finally, Roblox became extended from an IPO base 79.20 buy point. Shares rose over 6.5% on Monday.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) rose a modest 0.2% Monday. The ETF is still below its 50-day line. As far as IBD’s 197 industry groups, food products, auto manufacturers and internet content stocks led the upside while region bank stocks and solar energy underperformed.