The Dow Jones Industrial Average was climbing higher Monday, however, the Nasdaq saw the biggest gains amid a rally in tech stocks. Microsoft (MSFT) and Apple (AAPL) were among the best-performing blue chips. Meanwhile Bitcoin was up after a Federal Reserve governor touted the idea of a digital dollar.
Nasdaq Leads, S&P 500 Gains
The Nasdaq was the top major index of the day as tech stocks outperformed, gaining almost 2%. The top performer was Applied Materials, with EV stock Tesla (TSLA) following closely behind. Both rose around 5%.
The S&P 500 was also faring well, gaining more than 1%. Casino stock MGM Resorts (MGM) was the star name here, rising almost 6%.
The S&P sectors were all green, with technology and communication services posting the biggest gains. Utilities rose by the smallest margin.
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Small caps lagged with the Russell 2000 turning in a gain of around 0.9%. The Innovator IBD 50 ETF (FFTY) fared even worse, rising 0.7%.
Apple Stock Helps Dow Jones
The Dow Jones Industrial Average was lagging the other major indexes, but was up almost 1%.
Apple stock was among the top performers, gaining around 2%, and is on the cusp of regaining the key 50-day moving average. Pushing above this level is important going forward.
Apple stock remains a long way from passing a consolidation pattern buy point of 145.19, according to MarketSmith analysis.
Microsoft was faring even better, rising more than 2%. The Leaderboard stock remains in buy zone from an ideal buy point of 246. It is up almost 13% so far in 2021.
However, both were left in the shade by network software play Cisco Systems (CSCO), which was the top performing component with a 2.5% gain. The stock, which has no actionable entry, is pulling away from the 50-day line.
Fed Official Touts Digital Dollar, Bitcoin Rallies
Federal Reserve Gov. Lael Brainard was touting the idea of a digital currency backed by the central bank.
She highlighted a variety of benefits, such as protection against fraud, and easier cross-border transactions. The sharp rises in Bitcoin prices over the past 12 months underline the possible demand for such a currency.
“The Federal Reserve remains committed to ensuring that the public has access to safe, reliable, and secure means of payment, including cash,” Brainard said at the CoinDesk Consensus 2021 conference. “As part of this commitment, we must explore — and try to anticipate — the extent to which households’ and businesses’ needs and preferences may migrate further to digital payments over time.”
It comes after Fed Chairman Jerome Powell announced the Fed will be releasing a working paper examining Central Bank Digital Currencies in the summer.
Bitcoin was rallying Monday, though it was just off the day’s highs. It was up almost 16% vs. the same time Sunday, trading at around $37,500, according to CoinDesk.
Grayscale Bitcoin Trust (GBTC) gained almost 5% and is trading around the 200-day moving average. GBTC stock plunged almost 24% last week.
These Growth Stocks Pass Buy
Contract electronics manufacturer Jabil staged a rebound from the 10-week line and is now offering up an entry point of 51.69. The buy zone runs up to 58.68. The stock has a very strong Composite Rating of 93.
Semiconductor equipment stock Applied Materials made a bullish move, surging past its 10-week line. Because it is rallying from below the key technical benchmark, this is classified as an aggressive buy point of 133.10.
The bullish moves earned both of these stocks a place on the prestigious Leaderboard list of top growth stocks.
Commvault Systems also managed to mount a buy point as it broke out of a consolidation pattern. The backup and archival software maker is in buy zone, just above an ideal entry point of 72.43.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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