Large caps led the advance in the stock market today as smaller issues took a well-deserved break. Recent breakouts showed wobbly action with just three trading sessions remaining in 2020. The iShares Russell 2000 ETF (IWM) fell 0.3%, while the Dow Jones Industrial Average gained nearly 0.7%.
Investors generally applauded President Donald Trump’s decision to sign a new coronavirus emergency spending package into law. Meanwhile, media reports noted that Democratic leaders of Congress are confident that $2,000 payments for qualifying households hit hard by the economic shock caused by Covid-19 will pass the House of Representative.
The S&P 500 rallied as much as 1% and notched brand-new all-time highs before settling for a 0.9% gain by Monday’s session end. At the session peak of 3740, the 500 had risen 11.2% in the fourth quarter alone.
U.S. Stock Market Today Overview
Last Update: 4:38 PM ET 12/28/2020
Meanwhile, the S&P 100, tracking the 100 largest companies by market value trading on U.S. exchanges, gained 1.5%. That beat a 0.7% lift by the Nasdaq composite and the Dow industrials. Volume climbed vs. Thursday’s half-day session. The stock market was closed on Friday for Christmas.
The benchmark U.S. Treasury 10-year bond stood at 0.92%, mostly unchanged from its level on Dec. 1. WTI crude oil futures dropped 1.1% to $47.68 a barrel.
In The Dow Jones
Dow Jones stock Microsoft (MSFT) outperformed most large-cap techs, rising 1% for its fourth advance in five sessions.
The Leaderboard stock is forming a bullish cushion above its flattened-out 50-day moving average. While the four-month consolidation does not fit a specific chart pattern right now, the base does carry a 232.96 proper buy point for now.
The cloud-computing and enterprise software giant’s earnings rose 32% to $1.82 a share in the September-ended fiscal first quarter on a 12% jump in sales to $37.2 billion. The Street sees fiscal 2021 profit climbing 18% to $6.77 a share.
Microsoft is also a member of the IBD Long-Term Leaders list.
Long-Term Leaders Making Bullish Moves
Within that list, Copart (CPRT) stood out with its 2.4% gain in dull turnover.
The leader in salvaged-car auctions is forming a shallow cup pattern with a 131.06 potential buy point.
Also in the auto space, new IBD Stock Of The Day Lithia Motors (LAD) backpedaled away from a session high of 304.97 but still gained 1.9%. The stock is trying to clear the 5% buy zone after jumping back above a 288.66 buy point in a six-week cup without handle.
IBD Big Cap 20
Idexx got showcased in the latest Inside The IBD Big Cap 20 story, which publishes once a week on Friday or earlier.
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