Stocks posted a solid session on Monday, buoyed by markets in Europe, which trampled concerns about weakened banks in Italy with a brisk rally.
The Dow pressed further into new highs with a 0.2% gain Monday, up 7.4% from a Nov. 4 low. The Nasdaq gained 1%, finding support at its 50-day moving average. The S&P 500 ticked up 0.6%. Small caps easily outpaced the stock market today, with the Russell 2000 and the S&P SmallCap 600 jumping 1.8% apiece.
In Europe, Frankfurt's DAX bolted ahead 1.6% and the CAC 40 in Paris popped 1%, outpacing a 0.2% gain by London's FSE 100 and a 0.2% decline by the FTSE MIB Index in Milan.
On U.S. markets, Italian automaker Fiat Chrysler (FCAU) surged 6%. Exotic car maker Ferrari (RACE) sped to a 2.8% gain. Ferrari shares are well-extended from a 50.19 buy point of a deep cup-with-handle base and a subsequent bounce off the 10-week moving average. The stock is up 7% from a 52 offering price at its Oct. 21, 2015, debut.
Nike, First Solar, 3D Systems Notch Big Gains
At the top of the Dow, Nike (NKE) strode ahead 2.8% and Goldman Sachs (GS) swung up 2.3%. HSBC lifted its rating on the athletic-shoe and apparel giant to buy from hold and its price target to 60 from 56. Despite rising competition, the bank thinks Nike is "still poised for superior growth and returns long term."
Solar energy stocks led the day's gains among industry groups, with SunPower (SPWR) soaring 9% and First Solar (FSLR) posting a 7% gain, leading the S&P 500. Makers of 3D printers also soared, with 3D Systems (DDD) rocketing 10% and Stratasys (SSYS) vaulting 7%.
Energy issues packed the top of the S&P 500, despite a 1% pullback in oil prices during the session. West Texas intermediate oil futures slipped to just above $51 a barrel and Brent crude ended at $45.23. Range Resources (RRC) jumped 6%. Southwestern Energy (SWN) and Valero Energy (VLO) each climbed more than 5%.
Graphics chip designer Nvidia (NVDA) topped the IBD 50 list Monday, rising 3.9%. The stock is in the second week of a consolidation, after a mid-November rebound from its 10-week line of support.
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