Investors continued their holiday cheer Tuesday as the Dow Jones Industrial Average and other major indexes kept the Santa Claus rally going in midday trades amid new housing data.
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The Dow started off fractionally higher and continued to rise as the index gained 0.3% in recent action. Blue chips now are on track for their ninth straight week of gains to finish the year. The S&P 500 also climbed 0.3% in the stock market today, as the Nasdaq hiked 0.4% higher.
But it was small caps that led the day. The Russell 2000 kept adding to recent hefty gains and rose 0.9%. Small caps are on pace for their best month of the year, having gained 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 (FFTY) 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 3.9%.
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 (INTC) 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 is also expanding its operations in Ohio, Arizona and Eastern Germany. Shares are topping a profit zone from a buy point of 40.07.
Caterpillar (CAT) and Chevron (CVX) lifted the Dow, while health care stocks Merck (MRK), UnitedHealth (UNH) and Amgen (AMGN) weighed on it. CAT is just above a buy point of 293.88.
Apple (AAPL) 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 (TSLA) gained nearly 2% as China vehicle insurance registrations rose again last week, signaling that the electric-vehicle giant could wrap up its best quarter ever in deliveries to that nation. So far, insurance registrations are 17% higher in the fourth quarter. TSLA stock is approaching a buy point of 278.98.
A Tesla EV rival in China, Nio (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.
Outside the Dow Jones index, deals are picking up in health care.
Rayzebio (RYZB) soared more than 100% on news it agreed to sell its operations to Bristol Myers Squibb (BMY) 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 (KRTX) for $14.1 billion.
Elsewhere in health care, AstraZeneca (AZN) has agreed to buy Gracell (GRCL) for $1.2 billion. GRCL stock jumped more than 50%. But Milestone Pharmaceuticals (MIST) plunged 30% and fell below its 50-day line after the U.S. Food and Drug Administration rejected an application for a drug to treat tachycardia.
Stocks On Watch
Among IBD 50 stocks, MongoDB (MDB) is near a buy point of 412.67 while ACMR (ACMR) has topped a buy zone from an 18.75 entry. DraftKings (DKNG) also sits near a buy point of 34.49. DKNG holds a spot on the IBD Leaderboard.
Among the so-called Magnificent Seven, Alphabet (GOOGL) 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 (TNK), Frontline (FRO) and DHT Holdings (DHT) all fell sharply.
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