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Dow Jones Jumps Almost 200 Points As Tech Stocks Rebound; Roblox Vaults, SPCE Stock Soars

Tech stocks rebounded Monday as the Nasdaq led and Apple, Microsoft and Intel boosted the Dow Jones Industrial Average to a nearly 200-point gain.




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The Nasdaq rallied 1.4%, the S&P 500 rose 1.1% and the Dow Jones industrials gained 0.5% in today’s stock market. Small caps tracked by the Russell 2000 added 0.7%. Early data showed lower volume on both major exchanges vs. Friday.

The tech stock rally helped the Nasdaq regain its 50-day moving average. On May 10, the Nasdaq tumbled 2.6% to close below the line for the first time since March.

Last year, tech stocks boosted the Nasdaq to a 43.6% gain — its fifth-best year ever. The S&P 500 rose 16.3% in 2020 and the Dow added 7.2%. Read The Big Picture for more detailed daily market analysis.

The U.S. economy is recovering from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. But many states are relaxing restrictions, and cases are plateauing or declining in some states as vaccinations continue to roll out.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34393.78 +185.94 +0.54
S&P 500 (0S&P5) 4197.16 +41.30 +0.99
Nasdaq (0NDQC ) 13661.17 +190.18 +1.41
Russell 2000 (IWM) 221.41 +1.44 +0.65
IBD 50 (FFTY) 43.75 +0.34 +0.78
Last Update: 4:14 PM ET 5/24/2021

Cumulative Covid-19 cases worldwide have topped 167 million, with nearly 3.5 million deaths, according to Worldometer. In the U.S., cases are approaching 34 million with more than 604,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically in many states.

Dow Winners And Losers

Big-cap tech stocks rebounded with Cisco Systems (CSCO), Microsoft (MSFT), Intel (INTC) and Salesforce.com (CRM) up more than 1.5% each.

Apple (AAPL) advanced 1.3% to close just shy of its 10-week moving average, where it’s run into resistance for much of the past two weeks. The stock recently triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point of a cup with handle.

Microsoft rose 2.4% to retake its 50-day line. It’s back in potential buy range from a 246.23 buy point of a flat base, according to MarketSmith chart analysis. The buy zone goes up to 258.54. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.

Other blue chips in buy range include JPMorgan (JPM) and Goldman Sachs (GS). JPMorgan, up 0.5%, remains in the 5% buy zone from a 161.79 entry of a flat base. The buy range goes up to 169.88. Goldman, up 0.6%, is still in buy range from a 356.95 entry. The buy zone tops out at 374.80.

But Amgen (AMGN) fell 1.3% to undercut its 50-day line. It’s back below a 256.70 buy point of a cup with handle, after a failed breakout. UnitedHealth Group (UNH) gave up 0.2% and is well extended from a 368.05 buy point of a flat base.

Outside The Dow Jones

Automakers, casino, chip, internet content and software stocks led the upside among IBD’s 197 industry groups. Oil and gas royalty trusts, long-term medical and education stocks lagged.

In the automaker group, Tesla (TSLA) reversed from an early loss to a 4% gain to reclaim its long-term 200-day moving average. The electric vehicle giant’s shares are about 35% off their 52-week high. On Jan. 24, Tesla stock hit a record high of 900.40, after a 93% rally from a 466 buy point of a cup with handle.

Database software maker Commvault Systems (CVLT) rallied 5.8% to clear a 71.82 buy point of a cup with handle in twice normal trade. It’s nearly extended from the 5% buy zone, which goes up to 75.41.

Graphics chip maker Nvidia (NVDA) rose more than 4% in heavy volume to climb back above a 615 buy point of a cup base. However, Nvidia stock recently triggered the 7%-8% loss sell rule after breaking out in early April. The Leaderboard stock is now building the right side of a new base, which offers a potential entry at 648.67.

Fellow Leaderboad stock and recent IPO Roblox (RBLX) vaulted 8% in nearly triple normal trade to hit a new high. That adds to Friday’s 8% gain and extends its win streak to four. Roblox re-cleared an 83.51 buy point of a short consolidation. It’s now out of buy range, which topped out at 87.69.

SPCE Stock Takes Off

Virgin Galactic (SPCE) soared 28% in rapid turnover to regain both its 50-day and 200-day lines. The space tourism company successfully landed a powered test flight of its SpaceShipTwo spacecraft on Saturday. SPCE stock is still 57% off its February high after a recent dive.

The Innovator IBD 50 ETF (FFTY) advanced 0.8%, thanks to big gains from Celsius (CELH), CareDx (CDNA) and Medifast (MED). InMode (INMD), ASML (ASML) and Alphabet (GOOGL) contributed gains of roughly 3% or more.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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