The main indices gave a favorable sign of Monday and built on their uptrend while leading shares participated in the…
The main indices gave a favorable sign of Monday and built on their uptrend while leading shares participated in the rally.
The stocks opened sharply higher on the stock market today after the US and China agreed over the weekend to a 90-day stop on new Chinese imports. President Trump and Chinese leader Xi Jinping also agreed to expand trade talks, and China has decided to take a 40% tax on American cars.
The Nasdaq composite led a 1
.5% gain. S & P 500 increased by 1.1%, and the average Dow Jones industry also increased by 1.1%.
In an important step, Dow and S & P 500 closed over their 50-day moving averages. Nasdaq ended just below its 50-day average. This should be regarded as a good sign of the upturn of the new stock market.
Volume increased, according to preliminary figures. Advancing stocks led decliners by better than 13-to-5 on NYSE and with 2-to-1 on Nasdaq.
On a strong day for technology stocks, the semiconductors shone. The Philadelphia semiconductor index rose 2.7% to the highest level since October 17th.
The energy sector was strongest, with SPDR Energy ETF (XLE) by 2.2%. The price of US crude oil increased by 4% to almost $ 53 per barrel of trade talks and shows that OPEC is ready to cut production.
Innovator IBD 50 ETF (FFTY) jumped 2.6%, indicating that leading shares should not be denied a part of the rally. Most IBD 50 shares increased and the majority closed close to high prices or in the top half of today’s price range.
However, shortcomings were lacking. A lack of breakouts has been a dampening of the market’s new upward trend.
Euronet Worldwide (EEFT) closed just over 120.22 points on a flat base. But the volume was just average. The payment company is on IBD Leaderboard. Veeva Systems (VEEV) closed over 98.38 point of purchase with a double bottom base.
Boeing helped the power to Dow’s advances, as the shares in the aviation industry climbed 3.8% and closed over 50-day moving average for the first time since November 9th. Boeing is one of the largest companies expected to benefit from improved trade relations with China. Caterpillar (CAT), another company sensitive to tariffs, rose 2.4%.
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