Investors continued their holiday cheer Tuesday as the Dow Jones Industrial Average kept the Santa Claus rally going in early afternoon trades amid new housing data.
The Dow built on slight early gains throughout the morning session and was up 0.4% by the afternoon. Blue chips now are on track for their ninth straight week of gains to finish the year. The S&P 500 also climbed 0.4% on the stock market today, as did the Nasdaq.
But small caps continued to impress. The Russell 2000 kept adding to recent hefty gains and rose a solid 1.2%. Small caps are on pace for their best month of the year, having surged more than 12% in December.
Volume on the New York Stock Exchange was lower but higher on the Nasdaq compared with midday action Friday.
Meanwhile, the Innovator IBD 50 exchange traded fund added 0.5%. Shares are forming the right side of a cup base with a buy point of 26.97. And crude oil jumped more than 3% to $76.10 a barrel.
Finally, the yield on the benchmark 10-year Treasury note was virtually unchanged at 3.89%.
In economic news, housing reports showed mixed results. The Case-Shiller home price index met Econoday forecasts by rising 0.6% in October. But the Federal Housing Finance Agency index rose 0.3% for October, short of views for a 0.5% gain. Investors also await a pending home sales report for November, which is due Thursday.
Dow Jones Stocks
Among Dow Jones stocks, Intel rose after Israel's government said it would invest $3.2 billion in a new $25 billion Intel wafer fabrication plant in Israel. The company also is expanding its operations in Ohio, Arizona and Eastern Germany. Shares have topped a profit zone from a buy point of 40.07.
Caterpillar and Chevron lifted the Dow, while health care stocks Merck, UnitedHealth and Amgen weighed on it. CAT is just above a buy point of 293.88.
Apple fell but remained near a buy point of 192.93. The iPhone maker is appealing a ban on importing some of its smartwatches that use blood oxygen monitoring technology.
Stocks Moving Today
Shares of Tesla gained nearly 2% as China vehicle insurance registrations rose again last week. That's a signal the electric-vehicle giant could wrap up its best quarter ever in China deliveries.
So far, insurance registrations are 17% higher in the fourth quarter. TSLA stock is approaching a buy point of 278.98.
On Thursday, Wedbush analyst Dan Ives increased his TSLA price target to 350 from 310. The new price target would make Tesla a $1 trillion dollar company.
A Tesla EV rival in China, Nio jumped after it launched its ET9 on Nio Day, with deliveries expected in the first quarter next year. Shares have rebounded from their 50-day moving average in a three-day winning streak and are trying to retake the 200-day moving average.
How To Handle This Santa Claus Rally; Five Stocks In Buy Zones
Health Care Deals
Meanwhile, several deals in health care came to light.
Rayzebio catapulted 100% on news that it agreed to sell its operations to Bristol Myers Squibb for $62.50 a share, in a deal worth $4.1 billion. RYZB went public in September this year. The deal comes on the heels of Bristol Myers Squibb's agreement to purchase Karuna Therapeutics for $14.1 billion.
Elsewhere in health care, AstraZeneca has agreed to buy Gracell for $1.2 billion. GRCL stock soared by more than 50%.
But Milestone Pharmaceuticals plummeted 30% and fell below its 50-day line after the U.S. Food and Drug Administration rejected the company's application for a drug to treat tachycardia.
Outside Dow Jones: Stocks On Watch
Among IBD 50 stocks, MongoDB is near a buy point of 412.67 while ACMR has topped a buy zone from an 18.75 entry. DraftKings at 34.49 also sits near a buy point. DKNG holds a spot on the IBD Leaderboard.
Among the so-called Magnificent Seven, Alphabet is in a buy zone above a buy point of 139.42.
Oil tankers sold off as Houthi rebels continued to attack commercial vessels in the Red Sea. Teekay Tankers, Frontline and DHT Holdings all fell sharply.
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