U.S. stocks rallied into the close with solid gains Tuesday, as JPMorgan Chase (JPM) and Travelers (TRV) led the Dow, and biotechs boosted the Nasdaq.
The Nasdaq surged 2.1%, the S&P 500 rallied 1.8%, and the Dow Jones industrial average added 1.6%. However, volume was lighter across the board vs. Monday, according to preliminary data.
The Dow and S&P 500 regained their 200-day moving average after breaking the support level Monday, as stocks sold off hard for a second session following Britain's decision to withdraw from the European Union. The Nasdaq is still 3% below its 200-day line.
JPMorgan led the Dow with a 3% gain in heavy volume to recover most of its Monday loss. It's still well below its 50-day and 200-day lines after Friday's 7% plunge. Insurer Travelers also rose 3%, retaking its 50-day line as it continued shaping a flat base.
Energy stocks led the upside in the stock market today as West Texas Intermediate crude prices surged more than 3% to $47.89 a barrel. Biotechs and telecom-related stocks lifted the Nasdaq.
Acacia Communications (ACIA) halted a three-session slide with a 10% bounce in above-average trade. The May 13 IPO has been volatile recently, but it is still up nearly 70% from its 23-a-share offering price. Acacia makes interconnect modules for cloud infrastructure operators and telecom service providers.
Top gainers on the IBD 50 included life insurer Primerica (PRI), up 5.5%; Taiwanese chip designer Silicon Motion Technology (SIMO), up 4%; and Cambrex (CBM), also up 4%. All three stocks bounced off support at their 50-day lines.
Monday's IBD 50 winners saw small losses: B&G Foods (BGS), Dr Pepper Snapple (DPS) and Dollar General (DG) each gave up more than 0.6%.
On the economic front, the June Consumer Confidence Index rose to an eight-month high of 98, beating forecasts for 93.3 and May's 92.4 revised reading. S&P/Case Shiller's Home Price Index showed a 5.4% increase in April. First-quarter GDP was revised upward to 1.1% from an earlier estimate of 0.8% growth.
Coming up Wednesday are the National Association of Realtors' April pending home sales index, the Mortgage Bankers Association's weekly mortgage applications data and the weekly petroleum status report from the Energy Information Administration.
