Dow Jones Closes Higher; Nasdaq Rallies While Apple Scores Breakout

The Dow Jones Industrial Average closed near highs on Tuesday, as stocks continue to build on their recent win streak. The major indexes all rallied into the close while the Nasdaq led on the upside. Small caps also outperformed.

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After all three indexes closed higher for their second-straight week on Friday, stocks are showing no signs of slowing down. U.S. indexes are making headway in regaining key moving averages, which serve as bullish markers. The S&P 500 is now trading above the 21-day, 50-day and 200-day lines. Meanwhile, the Dow Jones reclaimed its 50-day line on Tuesday. But the Nasdaq is still below it’s 200-day line.

The majority of S&P 500 sectors traded higher, with the exception of energy stocks, which led the downside. Meanwhile, real estate stocks rose nearly 3% and led S&P sectors. Real estate and technology stocks led for a second day on Wall Street. The Technology Select Sector SPDR (XLK) ETF rose 1.4%.

Dow Jones stock Apple (AAPL) closed 1.9% higher while shares scored a breakout above a double-bottom buy point at 176.75. The tech giant closed inside its 5% buy zone after gapping above the double-bottom entry, according to IBD MarketSmith chart analysis.

The 5% buy area runs as high as 185.58. The stock also notched its eleventh-straight close higher. On a weekly chart, the relative strength line also reached a new high, which bodes well for the breakout. Apple stock is among the first of the major tech plays to break out as the sector continues to recover from heavy selling in recent months.

Dow stocks Nike (NKE) and Visa (V), however, led the upside among blue chips with gains of over 3% each.

Dow Jones In The Stock Market Today

At the close, the Dow Jones industrials traded up 1% as the Nasdaq rose 1.8%. The S&P 500 advanced 1.2% as the Russell 2000 closed up 2.7%. Early data showed volume was higher on the Nasdaq and on the NYSE vs. the close on Monday. Stocks rising in heavy volume is a good sign for bullish investors.

Markets reacted positively to new developments from the latest round of Russia-Ukraine cease-fire talks.

Russian President Vladimir Putin has agreed to meet Ukrainian President Volodymyr Zelenskyy after negotiations are completed, according to Russian chief negotiator Vladimir Medinsky.

Meanwhile, energy stocks continued to trade lower. U.S. crude futures fell 1% to just under $105 per barrel. This came after Monday’s drop of over 6%.

The 10-year U.S. Treasury note’s yield rose last week to a high of 2.5% early Friday, from a yield of 1.68% in early March. The move came after the Federal Reserve announced the first in an expected series of interest-rate hikes last week. On Tuesday, the 10-year U.S. Treasury note’s yield cooled to 2.4% in afternoon trading.

Breakouts: Costco, Qualys Trade In Buy Zones

In the MarketSmith Growth 250, a handful of stocks scored breakouts. Warehouse retailer Costco (COST) broke out from a 566.85 cup-base entry. Shares have already been trading inside the buy zone of a 545.39 cup-with-handle buy point, after a breakout in mid-March.

IT security stock Qualys (QLYS) is in a buy zone after passing a cup-with-handle entry of 143.04. The RS line here has just hit a new high, which is a positive. Volume was lower however, which could be a red flag. The cloud-based security and compliance stock is trading well above support at its 50-day and 21-day lines.

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

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