Large caps led the advance in the stock market today as smaller issues took a well-deserved break. Recent breakouts showed wobbly action with just three trading sessions remaining in 2020. The iShares Russell 2000 ETF (IWM) fell 0.3%, while the Dow Jones Industrial Average gained nearly 0.7%.
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Investors generally applauded President Donald Trump’s decision to sign a new coronavirus emergency spending package into law. Meanwhile, media reports noted that Democratic leaders of Congress are confident that $2,000 payments for qualifying households hit hard by the economic shock caused by Covid-19 will pass the House of Representative.
The S&P 500 rallied as much as 1% and notched brand-new all-time highs before settling for a 0.9% gain by Monday’s session end. At the session peak of 3740, the 500 had risen 11.2% in the fourth quarter alone.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30403.97 | +204.10 | +0.68 |
| S&P 500 | (0S&P5) | 3735.36 | +32.30 | +0.87 |
| Nasdaq | (0NDQC ) | 12899.42 | +94.69 | +0.74 |
| Russell 2000 | (IWM) | 198.35 | -0.66 | -0.33 |
| IBD 50 | (FFTY) | 40.88 | -0.72 | -1.73 |
Last Update: 4:38 PM ET 12/28/2020 |
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Meanwhile, the S&P 100, tracking the 100 largest companies by market value trading on U.S. exchanges, gained 1.5%. That beat a 0.7% lift by the Nasdaq composite and the Dow industrials. Volume climbed vs. Thursday’s half-day session. The stock market was closed on Friday for Christmas.
The benchmark U.S. Treasury 10-year bond stood at 0.92%, mostly unchanged from its level on Dec. 1. WTI crude oil futures dropped 1.1% to $47.68 a barrel.
In The Dow Jones
Dow Jones stock Microsoft (MSFT) outperformed most large-cap techs, rising 1% for its fourth advance in five sessions.
The Leaderboard stock is forming a bullish cushion above its flattened-out 50-day moving average. While the four-month consolidation does not fit a specific chart pattern right now, the base does carry a 232.96 proper buy point for now.
The cloud-computing and enterprise software giant’s earnings rose 32% to $1.82 a share in the September-ended fiscal first quarter on a 12% jump in sales to $37.2 billion. The Street sees fiscal 2021 profit climbing 18% to $6.77 a share.
Besides Microsoft, a few more of the so-called FAANG tech megacaps also got discussed on Monday’s IBD Live show.
Microsoft is also a member of the IBD Long-Term Leaders list.
Long-Term Leaders Making Bullish Moves
Within that list, Copart (CPRT) stood out with its 2.4% gain in dull turnover.
The leader in salvaged-car auctions is forming a shallow cup pattern with a 131.06 potential buy point.
Also in the auto space, new IBD Stock Of The Day Lithia Motors (LAD) backpedaled away from a session high of 304.97 but still gained 1.9%. The stock is trying to clear the 5% buy zone after jumping back above a 288.66 buy point in a six-week cup without handle.
IBD Big Cap 20
Meanwhile, Idexx Laboratories (IDXX) eased 0.5% and remained in the 5% buy zone after clearing a 485.10 entry point in a nearly six-week flat base last week.
Idexx got showcased in the latest Inside The IBD Big Cap 20 story, which publishes once a week on Friday or earlier.
Please follow Chung on Twitter: @saitochung and @IBD_DChung
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