Major stock market indexes tested midday lows on Monday afternoon but remain in positive territory. Investors seem to have forgotten Friday's hotter-than-expected January PCE inflation report.
The Dow Jones Industrial Average rose 0.4% while the S&P 500 gained 0.6%. The Nasdaq shined, adding 1%. The small-cap Russell 2000 was in line with the S&P 500, up 0.6%.
NYSE and Nasdaq volume nearly matched Friday afternoon's numbers.
The S&P 500 reclaimed the 50-day moving average, at least for now. The Dow Jones remained below the 50-day line while the Nasdaq held above its 200-day moving average.
Crude oil dipped 1.5% to $75.20 per barrel. The Energy Select Sector SPDR ETF inched up 0.4%, finding support at the 200-day line.
Bitcoin futures ticked up 0.8% to $23,960. The Innovator IBD 50 ETF added 1.6%. The 10-year U.S. Treasury yield trimmed 3 basis points to 3.93%.
European stocks rose, with the German DAX adding 1.1% and the Paris CAC gaining 1.5%. The London FTSE edged up 0.7% to close out the trading day.
January durable goods fell 4.5% vs. the 4% forecast. This followed December's big 5.6% surge, underpinned by aircraft orders. Orders excluding transportation rose 0.7% vs. a flat forecast. Core capital goods rose 0.8%, much better than the forecast 0.1% decline.
Business investment picked up 0.8% to post the fastest gain since August.
Earnings Bring Out Stock Market Bulls
China-based EV maker Li Auto pulled back from early gains, dipping 0.6% after reporting better-than-expected Q4 earnings per share. The company expects a 73% increase in Q1 deliveries.
Chinese EV peers XPeng and Nio rose 1% and 0.1%, respectively. Nio reports Q4 earnings on Wednesday.
Axsome Therapeutics rallied 4.8% after beating on sales but posting a bigger-than-expected earnings loss. The company is developing a central nervous system disorder therapy.
Companies reporting earnings this week include C3.ai, Costco Wholesale, Lowe's, Dow Jones component Salesforce and Workday.
Oil Tankers On Fire
Crude transporter International Seaways popped 2.8% and broke out of a cup base, hitting the 48.22 buy point. The relative strength line hit a new high on the weekly chart, flashing a blue dot.
Rival Teekay Tankers gained 2% and hit the 20%-25% profit zone of a cup base with a 36.71 buy point. TNK is ranked first in the Oil & Gas Transport/Pipeline group, which is ranked 38th out of the 197 IBD industry groups.
Peer Scorpio Tankers rose 1.2% and is above the 5% buy zone of a choppy base with a 57.81 buy point.
Movers And Shakers: Two IBD 50 Stocks Make Nice Moves
IBD 50 stock Super Micro Computer jumped 5.2% and is above the 5% buy zone of a choppy base with a 95.32 buy point. The server, storage and 5G stock has been on a run since reporting better-than-expected Q4 EPS and sales. and raising estimates.
Analysts expect $10.34 annualized EPS in 2023, up from $5.65 in 2022. Profit for 2024 is forecast to dip to $9.57 per share. SMCI stock is up 25% so far this year.
Fellow IBD 50 and October IPO stock Mobileye Global rebounded 6.6% after Friday's 8.6% decline dropped shares below the 21-day line. Shares of the Israeli autonomous-driving tech provider reversed course earlier this month after a steep climb after January earnings.
Tesla jumped 5.3% in Monday's stock market action, ahead of Wednesday's Investor Day. Look for news on the updated Model 3, driver-assistance hardware and potential battery production plans.
Plastics container maker Myers Industries rose 3.5% and broke out of a flat base, hitting the 25.21 buy point, and is in the 5% buy zone reaching to 26.47.
Cancer therapy developer Seagen gapped up over 9% in heavy volume, on news that Dow Jones component Pfizer is in talks to buy SGEN. Shares approached the 183.10 buy point and hit an early entry of 181.85 in the right side of a cup base, according to MarketSmith pattern recognition.
Pfizer stock fell 1.6% on the news.
Union Pacific gapped up over 9% after announcing that Chairman and CEO Lance Fritz will step down this year. The news follows demands from activist shareholder Soroban Capital Partners that Fritz be replaced. UNP is the S&P 500 biggest gainer to today.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
