Stocks rallied into the final trading week of a widly volatile year Monday, as the signing of a federal stimulus bill, the rollout of Covid-19 vaccine in Europe, and a new record high for Bitcoin boosted early trade. IBD 50 stocks Logitech and Taiwan Semiconductor rose near buy points. China-based stocks were mixed after regulatory actions. And Apple took top billing on the Dow Jones today, aiming to extend its leadership of the blue chip index for the year.
The Dow Jones Industrial Average jumped 220 points at the starting bell for a 0.7% gain. The S&P 500 also swung 0.7% higher, as cruise line operators and airlines ran hot as expansion of vaccines and the passage of stimulus measures stirred investor optimism. American Airlines Group (AAL) led the S&P 500 with a 3.5% gain.
The Nasdaq traded up 0.6% on the stock market today, as stimulus- and vaccine-related Cintas (CTAS) and Booking Holdings (BKNG) jumping between 2% and 3% higher. Tesla (TSLA) was not far behind with a 2% gain. Chips were active, with Micron Technology (MU) up more than 2% to lead the Philly Chip Index after Mizhuo raised its price target. The VanEck Vectors Semiconductor ETFSMH gained 0.8%.
Generac (GNRC) gained 2.1%, climbing back into a buy range above a flat base buy point at 234.65. The stock briefly cleared, then settled back below the entry during the Christmas Eve session.
Markets had a close eye on China-based stocks, after the country’s regulators tightened controls on Alibaba’s Ant Group, reining in its expansion from its core payments operations into consumer lending and wealth management. Alibaba Group Holdings (BABA) pared its opening losses to 0.7%, following a 14% dive on Thursday.
Dow Jones Today: Apple, Walt Disney Rally
Apple (AAPL) rallied 2.5% on the Dow Jones today, as investors continued to crowd into the stock in the final week of the year. Apple stock, an IBD Leaderboard listing, is just beyond the buy range of an alternative buy point at 125.49. The buy range extends to 131.76. It ended trade on Thursday less than 5% below a traditional cup-based buy point of 138.08, according to MarketSmith chart analysis.
Walt Disney (DIS) gained 2%. Disney stock technically broke above a double-bottom base buy point at 131.46 on Nov. 9. Shares have since advanced 32%.
President Signs Stimulus
President Donald Trump prevented a government shutdown that loomed for Tuesday and opened the door for the Treasury to turn loose $900 billion in coronavirus stimulus support to U.S. businesses and consumers. Trump initially was widely expected to sign the bill, which passed through Congress early last week. A quick pass-through at the White House may have made possible distributions before the end of the year, critical timing for consumers facing rent and mortgage payments, and for Republicans fighting to hold two Senate seats in Georgia’s Jan. 5 runoff elections.
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But the President balked at the…
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