The stock market held decent gains with one hour left to go in Monday's session, with the Nasdaq composite leading the way, up 0.8%.
The Dow Jones industrial average was up 0.4%, helped by strength in Cisco Systems (CSCO), Boeing (BA) and 3M (MMM). The S&P 500 added 0.5%. Volumes on the NYSE and Nasdaq were tracking lower than Friday's levels in the stock market today.
Department stores and gold miners outperformed, while defense and fiber-optic stocks were also in the spotlight.
Lockheed Martin (LMT) gapped up and rose 1.5% to 276.95, a beneficiary of a $110 billion arms deal with Saudi Arabia. Lockheed is still in buy range from a 270 buy point after the initial breakout fizzled and the stock started moving sideways.
Boeing (BA) also did well, rising 1% to 183.21. It's trying to reclaim a 185.81 buy point.
Elsewhere, Applied Optoelectronics (AAOI) jumped 11% to 70.34 after Needham initiated coverage with a strong buy rating and set an 85 price target. Also in the group, IBD 50 name Lumentum (LITE) rose 8% to 57.72. It's still in the early stages of clearing a cup-shaped base with a 56.02 buy point.
China name Momo (MOMO) reversed lower, falling nearly 3%, ahead of its earnings report Tuesday before the open. It's well-extended in price now after a breakout from a cup-with-handle base in March.
In the biotech space, Amgen (AMGN) shed 2.5% on news that its promising osteoporosis drug could be sidelined on cardiovascular woes. Radius Health (RDUS) surged on the news but was well off session highs after popping 20% early. Radius' osteoporosis drug Tymlos was approved by the Food and Drug Administration in April.
After the close, watch for earnings from Agilent (A). It's still in buy range from a 54.92 buy point, although the stock's reversal last week was disconcerting. A monthly call option with a 55 strike price (June 16%) recently came with a premium of $2, offering a trade with palatable downside risk of 3.6%. You can learn more about IBD's option strategy to use around earning here.
At the New York Mercantile Exchange, benchmark crude oil for June delivery approached the $51-a-barrel level, rising nearly 1% to $50.76 ahead of Thursday's OPEC meeting. Recent production cuts are expected to be extended, but the market is unsure for how long.
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