Dow Jones, Nasdaq Extend Gains; S&P 500 Hits Record High; A Handful Of Growth Stocks Score Breakouts

The Dow Jones Industrial Average rose over 220 points in today’s stock market, extending last week’s rally. The major indexes all posted continued gains following last week’s Santa Claus rally. The S&P 500 notched a record high early Monday.

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Dow Jones Today

At around 1:30 pm ET, the Dow Jones industrials were up 0.7%. The Nasdaq composite rose 1.2%, leading the upside, while the S&P 500 gained 1.1%. Meanwhile, the Russell 2000 held a gain of around 0.5%. Volume was running lower on the Nasdaq and the NYSE vs. the same time on Thursday.

The major indexes extended last week’s gains as consumer discretionary, energy and tech stocks took the lead. Almost all S&P 500 sectors traded positively, but real estate sank 0.3%.

Stocks were looking grim heading into the holiday season, until a rally last week brightened the market outlook. After a three-day rally to cap the short week, IBD’s market outlook improved to a confirmed uptrend. The Nasdaq and S&P 500 are both above their 50-day moving averages, and the Nasdaq climbed above a trend line traced above its highs from the November peak.

With a handful of stocks showing improved relative strength and promising setups, investors may consider adding exposure to stocks that are performing well. But do so cautiously and remember that volatility remains high. In fact, December has been the most volatile month since September 2020.

As for the Dow Jones on Monday, stocks leading the upside included tech leaders Apple (AAPL), IBD Leaderboard stock Microsoft (MSFT) and networking giant Cisco Systems (CSCO).

Apple gained 1.9% as shares neared the 20% profit zone from a 153.26 cup-with-handle buy point. Shares initially broke out Nov. 17 and have floated higher above their 21-day line since then. This is a key sign of strength. Elsewhere, Microsoft is currently trading inside a buy area for investors to add shares or increase their position. The stock is in an alternate buy zone after finding support at the 10-week moving average.

Leading the downside in the Dow Jones industrials were Boeing (BA) and Disney (DIS). Boeing sank 1% while Disney fell 0.7%.

Stocks Making Notable Moves

The Innovator IBD 50 ETF (FFTY) showed continued strength with a 2% rise in afternoon trading. The ETF remains below the 200-day moving average, but regained the 21-day exponential moving average.

On Monday, a large handful of stocks in the MarketSmith Growth 250 index scored breakouts, including health care staffing services firm AMN Healthcare (AMN). Shares broke out of an oddly shaped consolidation with a 124.72 buy point. Volume remained weak, however. But on the positive side, the RS line inched toward a recent high.

Another health care staffing services firm, Cross Country Healthcare (CCRN), also scored a breakout from a 29.55 consolidation entry. The stock’s RS line notched a new high amid the breakout, a strong sign.

Additionally, chip stock Applied Materials (AMAT) broke out from a 159.10 buy point. Shares remain inside the buy area, as the RS line also ticked higher.

Finally, trucking firm ArcBest (ARCB) broke out from a base-on-base formation in heavy volume. The stock is still trading inside the buy range from the 116.89 buy point.

Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.

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