Dow Jones Rises While Tech Stocks Outperform; Nike Stock Pops On Earnings; These Travel Stocks Show Strength – Investor's Business Daily

BREAKING: Futures Steady After Strong Market Rebound

The Dow Jones Industrial Average staged a comeback in today’s stock market, rising over 500 points after Monday’s declines. The major indexes rose in unison, erasing the prior day’s losses.
An hour before the close, the Dow Jones industrials were up around 1.5%. The Nasdaq composite also rose 1.5% while the S&P 500 gained 1.6%. Meanwhile, the Russell 2000 led on the upside, with gains of nearly 2.7%. Data showed volume was running higher on the Nasdaq and lower on the NYSE vs. the same time on Monday.
In Monday’s sharp declines, the Nasdaq breached its Dec. 3 low which means the index’s new rally is no longer intact. However, the S&P 500 still remains in a confirmed uptrend as it holds above its Dec. 3 low around 4,495. Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
The Energy Select SPDR Fund (XLE) was leading the S&P 500’s sectors on Tuesday with a 2.8% rise. The ETF found support at its 200-day line on Monday. Meanwhile, The Technology Select Sector SPDR Fund (XLK) also outperformed, with a rise of 2.4%.
Financial stocks were boosted by an influx of demand as money flowed out of bonds and into finance-related industry groups. This also lifted the 10-year Treasury yield 7 basis points to 1.49%. The Financial Select Sector SPDR Fund (XLF) gained around 1.8% in afternoon trading.
Dow Jones stocks leading the index higher on Tuesday included Nike (NKE) and Boeing (BA), with gains of around 6.4% and 5.7%, respectively. Nike pared earlier gains after gapping up above the 21-day and 50-day lines. The company rallied after reporting strong earnings late Monday. EPS rose 6% to 83 cents a share on revenue of $11.4 billion. However, the company noted that China sales fell 24% to $1.84 billion, a slight cause for concern.
On the downside, Merck (MRK) lost around 1% while Verizon Communications (VZ) declined roughly 0.5%
The Innovator IBD 50 ETF (FFTY), showed strength with a 3% rise in afternoon trading. The ETF still remains below the 50-day moving average, the 21-day exponential line, and the long-term 200-day moving average.
Among top performing industry groups were airliners and travel booking stocks. Expedia (EXPE) broke out above a trend line, which serves as an early entry for aggressive investors. Shares rose close to 9%.
Over in the hotel group, Hilton Worldwide (HLT) also moved above a trend line and rose over 5%. The stock is closing in on a break out over a 148.85 buy point of a cup with handle. The stock’s RS line has ticked higher in recent sessions, a bullish sign.
Elsewhere, CubeSmart (CUBE), a leader in the self storage space, broke out above 56.74 flat base entry. But shares faded and reversed 0.8% lower. Data storage play Micron Technology (MU) also broke out from a 89.15 cup with handle on Tuesday. Shares remain inside the 5% buy zone, which tops out at 93.60, after trading over 10% higher on strong earnings.
Follow Rachel Fox on Twitter at @rachelgfox for more Dow Jones and stock market commentary.
IBD’s Market Outlook: A Guide To The Different Designations
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros
Stocks Rebound On Omicron Headlines; What To Do Now
11:58 AM ET The stock market rallied on omicron Covid headlines, but will that booster last? Micron, AMD and travel stocks led.
11:58 AM ET The stock market rallied on omicron Covid headlines, but will…
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2021 Investor’s Business Daily, LLC. All rights reserved