The stock market held strong gains in afternoon trading Tuesday. Several stocks in the Dow Jones today were up 3% or more today, including Johnson & Johnson (JNJ), which reported strong earnings. Other top gainers in the Dow Jones included Walt Disney (DIS), Nike (NKE) and Boeing (BA).
Money flowed out of bonds again, sending the 10-year Treasury yield higher by 4 basis points to 2.9%. The bond market continues to price in aggressive rates by the Federal Reserve this year.
The Dow Jones Industrial Average was up 1.2%, and the S&P 500 rallied 1.3%. Volume on the Nasdaq and NYSE was a tad higher compared to the same time Monday.
Top gainers in the S&P 500 included financial stocks like Citizens Financial (CFG) and Signature Bank (SBNY), but both stocks are still on downtrends below their 200-day moving averages.
Outside The Dow Jones
The Nasdaq composite and Nasdaq 100 were up about 1.8% each.
Switch (SWCH) was an outsize gainer in the technology sector, up more than 3%. After hitting a high of 31.80 earlier this month, SWCH broke out over a short trendline Tuesday and the stock’s relative strength line is in new high ground.
Top gainers in the Nasdaq 100 included security software stock Okta (OKTA). Shares jumped more than 7%, but OKTA is still more than 45% off its high and nowhere near a proper entry.
WTI crude oil futures fell sharply, down around 5% to $102.90 a barrel. That brought sellers into leading oil and gas producers like Comstock Resources (CRK) and SandRidge Energy (SD).
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Gold fell 1.4% to $1,959 an ounce, hurting the cause of Newmont (NEM), which dropped around 2.5%. Newmont reports earnings Friday before the open.
Headline flow was busy around Twitter (TWTR) again, days after Tesla (TSLA) CEO Elon Musk offered to buy the social media giant for $43 billion, or 54.20 a share. Early Tuesday, buyout titan Apollo Global Management (APO) entered the fray, offering to back a deal with equity or debt.
Tesla is a member of Leaderboard. Shares were up 2% ahead of the company’s earnings report late Wednesday. The Zacks consensus estimate is for adjusted profit to soar 132% to $2.16 a share, with revenue up 66% to $17.29 billion. TSLA stock is back above the 1,000 level as it forms a cup-with-handle base with a 1,152.97 entry.
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In other stock market news, Zendesk (ZEN), one of the 5 Best Tech Stocks To Watch Now, jumped more than 6% after a Bloomberg report said the company is exploring a possible sale.
IBD 50 Movers
The IBD 50 index of top-performing growth stock delivered plenty of strong gainers. The Innovator IBD 50 ETF (FFTY) lagged a bit, rising 0.7%, but stocks like Lululemon (LULU), Sarepta Therapeutics (SRPT), MP Materials (MP) and Shockwave Medical (SWAV) outperformed nicely.
Shockwave is tracked in the same industry group as Edwards Lifesciences (EW), which is the newest member of the Leaderboard model portfolio. EW stock jumped 4% as it vies for a breakout from a cup-with-handle base.
Shockwave is also forming a cup-with-handle base, a chart pattern that has been a launching pad for past stock market winners.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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