The stock market improved in the past hour of trading Monday, with the major indexes clawing back to the highs of the day. 3M gave the Dow Jones Industrial Average a boost. Eyes will be on consumer economic data on Thursday and jobs numbers Friday.
The Nasdaq improved its gain to 0.9% in afternoon stock market action. The Dow Jones Industrial Average rose 0.7%. The S&P 500 gained 0.6%. All three major indexes remain below their 50-day moving averages.
The small-cap Russell 2000 fared better than the major indexes and rose 1.1%.
The Nasdaq 100-tracking Invesco QQQ Trust ETF picked up steam and lifted 0.7%. And the Innovator IBD 50 ETF rose 1%.
Volume fell on the NYSE and Nasdaq vs. the same time on Friday.
The benchmark 10-year Treasury yield shed 2 basis points to 4.22%.
On the economic data front, Thursday we get the closely watched July personal income and spending data. Friday it's the jobs report that will take center stage as September starts.
As earnings season winds down, stocks worth noting include Dow Jones software giant Salesforce. It reports second-quarter earnings Wednesday.
Software makers MongoDB and Samsara, along with security software firms CrowdStrike and Okta, also report later this week.
Stock Market Action: Chinese Brokerage Stock Climbs
IBD 50 stock Modine Manufacturing got a 3.3% boost after EF Hutton raised its price target to 53 from 45 and maintained its buy rating on the heating and cooling stock. Shares are extended from a cup base with a 26.90 buy point and are trading above the 21-day exponential moving average.
Dow component 3M gapped up 5.1% in heavy volume, on news that it is getting close to settling more than 300,000 claims that its earplugs didn't protect users from hearing loss. The settlement is said to be around $5.5 billion and less than the $10 billion to $15 billion some thought it would cost the company, according to the Wall Street Journal.
Shares of the industrial, safety and consumer products company reclaimed their 50-day moving average on the move. 3M is the biggest gainer in the Dow today.
IBD 50 stock Futu Holdings spiked 7.3% after BofA Securities upgraded the Chinese brokerage firm to a buy rating from underperform and raised its price target to 62.80 from 32.15.
Monday's move is on track for the third straight gain following Futu's higher-than-expected Q2 earnings and sales report on Thursday.
Jabil gapped up more than 9% in heavy volume on news that it agreed to sell its mobility business to BYD Electronic for about $2.2 billion. The provider of outsourced manufacturing services saw its relative strength line hit a 52-week high, as shown by the blue dot on its IBD MarketSmith chart.
Medical Device Stock Pops On Trial News
XPeng improved from the day's lows and is now up 4.5% after the Chinese EV maker announced it would buy the smart-vehicle unit of Chinese ride hailing app Didi Global for about $744 million in stock.
Meanwhile, EV giant Tesla is now relatively unchanged as TSLA stock tests resistance at its 21-day line.
Boston Scientific gapped up 5.5% on news that its Farapulse treatment for atrial fibrillation met goals in a trial. The medical device stock is in a flat base with a 54.74 buy point and retook its 50-day line. The stock is on track for its largest increase since July 27, 2022, when it rose 5.2%.
Akero Therapeutics advanced 4.3% after UBS initiated coverage with a buy rating and an 83 price target on the biotech. Shares are forming a cup base with a 58.38 buy point, according to MarketSmith analysis. A trendline across the pattern offers an alternative buy point around 54.
Other Movers: CrowdStrike Falls On Downgrade
Shares of Novocure tumbled more than 34% in huge volume following news that a late-stage clinical trail of its ovarian cancer treatment did not meet its primary goals.
CrowdStrike sank 3.7% after Morgan Stanley downgraded the stock to equal weight from overweight and lowered its price target to 167 from 178. Shares of the cybersecurity stock fell further below the 50-day line and are now 9% below the 162.25 buy point of an Aug. 1 breakout attempt.
U.K.-based Abcam tumbled 3.5% after Danaher announced it would buy the biotech for $24 per share, equaling $5.7 billion. Shares fell below the 50-day line on the drop. Danaher rose 2.3%.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
