The stock market closed higher Monday, when a couple of leading stocks broke out of bases.
The Dow Jones industrial average led with a 0.6% gain. The S&P 500 added 0.5% and the Nasdaq 0.3%. Preliminary numbers showed volume fell noticeably from Friday, when Fed Chairwoman Janet Yellen made a speech that fanned trading.
Winners topped losers by 13 to 5 on the NYSE, a better breadth than on the Nasdaq, where advancers had a 12-to-7 advantage.
Steel stocks rose after Deutsche Bank upgraded Allegheny Technologies (ATI) to buy from hold. The maker of specialty materials and components jumped 11%, ending near the 18.77 buy point of a pattern.
Telecom infrastructure stocks also led, as Acacia Communications (ACIA) rose 5% in heavy trading. The stock is bouncing after taking a break last week from a torrid advance earlier this month.
Medical services, outpatient care providers and hospitals were among a group of health care industry groups that also led, although biotechs and generic drug companies lagged. Utilities fared relatively better too, as the Dow utility average jumped 0.8%.
Two leading stocks broke out of bases Monday.
LGI Homes (LGIH) topped the 36.54 buy point of a flat base in more than double its usual volume. The homebuilder has the best combination of fundamentals and chart action among the homebuilding stocks.
HealthEquity (HQY) cleared the 31.79 buy point of a flat base, although the pattern may also be interpreted as the handle of a larger base. Volume doubled the average pace for the operator of health savings accounts.
But some consumer stocks were weaker. Five Below (FIVE) closed more than 2% lower, after erasing early gains. It reports earnings on Wednesday. Ulta Beauty (ULTA) continued lower, shedding a fraction as it tries to climb back above its 50-day moving average.
On Tuesday, earnings are due from Veeva Systems (VEEV), which is an IBD 50 member; AeroVironment (AVAV), which makes unmanned aircraft and alternative energy systems; and shoe retailer DSW (DSW).
The S&P Case-Shiller home price index comes out at 9 a.m. The Conference Board releases its consumer confidence report for August at 10 a.m.
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