Nasdaq: Nasdaq To Make An Upbeat Turn To The Bulls
Nasdaq Composite Index is on the brink of escaping from bear-market territory.
On 21st Dec, the stock-market benchmark for the health of technology and Internet-related stocks closed more than 20% below the all-time high set. The benchmark met the widely accepted definition of a bear market.
After the index fell to mark a low closing for the selloff of 6,192.92 on Dec. 24, it punched higher and stood at 18.2%.
A finish at 7,431.50 for the Nasdaq COMP.+1.15% marked a rise of 20% from its recent low-an exit from bear-market territory. However, some traders argue that an asset only exits a bear market when it establishes a new high above its most recent peak.
Popular tech companies are — Facebook Inc. FB, +2.14% Apple Inc. AAPL, +2.84% Amazon.com Inc. AMZN, +0.44% Netflix Inc., and Google-parent Alphabet Inc. GOOGL, +2.04% GOOG, +1.99% — known as FAANGs.
By late November, they were all trading in the bear-market territory at the same time. They marked the unraveling of a previous profitable and popular wager.
Strategist said tech shares and the broader Nasdaq, meant the stock market lacked leadership or sector influence to take it to fresh highs.
However, so far this year shares of some embattled tech companies have outperformed the stock market by a wide margin. Facebook is up 28% while Netflix has gained 31% being the best performers in the FAANG cohort.
Meanwhile, so far in 2019, the Nasdaq has gained 10.5%, while the S&P 500 index SPX.+.068% has gained 8.3%. The Dow Jones Industrial Average DJIA.+0.70% has climbed 7.5%.
The Nasdaq put its best January, rising 9.7% since 2001. According to Dow Jones Market Data, 2001 was a year that saw its stellar start followed by a 22.39% decline in Feb.
Upbeat comments by the U.S. and Chinese officials on trade talks have also have been credited with supporting stocks.
Nasdaq: Nasdaq charges higher, Dow up as 6 growth stocks approach buy points
Today, nice gains in the software, medical, and consumer spending-oriented market boosted Nasdaq composite. It paced a solid start to the week.
The Nasdaq rolled up nearly 1% for its third beefy gain in four sessions. The Dow Jones lagged but still rose 0.4%.
The S&P 500 matched the Dow Jones industrials’ gain. Only a handful of IBD’s 197 industry groups fell 1% or more. They included tech services, wood products, specialty steel, and RV makers.
Meanwhile, watch for potential new breakouts by these leading stocks. All six — Adobe (ADBE), Vertex Pharmaceuticals (VRTX), Incyte (INCY), Monolithic Power (MPWR), Mellanox (MLNX) and Dow Jones component Nike (NKE) — are working on a new base and demonstrating relative strength vs. the S&P 500.
Adobe has joined the watch list section of IBD Leaderboard.
Meanwhile, former Leaderboard member Tencent Music Entertainment (TME) is trying to fight back after a significant pullback. Shares rallied more than 3% and are retaking a 14.33 aggressive entry point in a narrow IPO base.
Investors continued to take profits in utilities. The Dow Jones utility average, down 1.5% in 2018, fell 0.4% on Monday.
The Dow transports gained nearly 0.6%.