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Dow Jones Gains Over 400 Points While Nasdaq Leads; Chip Stocks Higher

The Dow Jones Industrial Average saw sizable gains in today's stock market, while the Nasdaq and S&P 500 ended the day positive as well. The Dow posted a gain of over 400 points as stocks looked to regain some of their losses from the recent market-wide sell-off.

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The Nasdaq composite rose 1.9% on Monday. The S&P 500 was up 1.6% and the Dow Jones closed 1.5% higher. The Russell 2000 small-cap index closed up 2.5%. Volume was mixed, trading nearly 6% lower on the Nasdaq and higher on the NYSE vs. the close on Friday, according to early data.

On Monday, the Innovator IBD 50 (FFTY) exchange traded fund gained 1.5%. The index gapped up in strong volume as it attempts to reclaim its 50-day line. Top performers lifting the index were PennyMac Financial Services (PFSI) and Marvell Technology (MRVL), which rose 5.4% and 4.9%, respectively. IBD 50 stocks XP (XP) and Futu Holdings (FUTU) led on the downside, down more than 1% each.

Meanwhile, several semiconductor stocks outperformed in the Nasdaq 100, including Broadcom (AVGO) and Qualcomm (QCOM) which both are finding bullish support at their 50-day lines.

Chip-equipment firm Entegris (ENTG) gained more than 3%. It's in a consolidation that shows an aggressive entry at 71.74. The stock also maintains a conventional entry from a 74.38 buy point in a cup-like base. Shares maintain a strong 96 Composite Rating and an RS Rating of 89.

The Nasdaq was also helped by strength in airline stocks, including United Airlines (UAL) and American Airlines (AAL). United jumped more than 5% and reclaimed its 50-day line after reaching a deal with pilots on schedule reductions to avoid furloughs through mid-2021.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 27584.71 +410.75 +1.51
S&P 500 (0S&P5) 3351.76 +53.30 +1.62
Nasdaq (0NDQC ) 11117.53 +203.97 +1.87
Russell 2000 (IWM) 150.13 +3.72 +2.54
IBD 50 (FFTY) 37.00 +0.63 +1.73
Last Update: 4:04 PM ET 9/28/2020

Dow Jones Today

As for the Dow Jones, nearly all 30 components traded higher, as Merck (MRK) fell slightly. Financial stocks American Express (AXP), Goldman Sachs (GS) and JPMorgan (JPM) performed well, with gains of over 2% each.

But Boeing (BA) led the upside among blue chips with a 6% gain, after rising 7% already on Friday. The stock is still trying to reclaim the 50-day moving average.

Shares of the aerospace company were boosted by multiple reports saying the head of the Federal Aviation Administration will fly the 737 Max this week as part of the recertification process. The stock is attempting to reclaim its 50-day line.

Meanwhile, Dow Jones component Apple (AAPL) was also among stocks with gains of over 2%.

Apple reclaimed its 50-day line after breaking below this level last Wednesday. Shares of the iPhone maker are nearly 60% extended from a 72.15 buy point of a cup with handle. The stock was recently removed from IBD's Leaderboard.

Snap Stock, Chipotle Near Buy Point

Beyond the Dow Jones, Snap (SNAP) and Leaderboard stock Chipotle (CMG) made notable moves on Monday as both traded at or near buy points.

Shares of Snap gapped up as it continues to build the right side of a cup base with a 26.86 buy point. Shares were higher after Guggenheim upgraded SNAP stock to buy from neutral. The stock remains 4% away from its proper entry after rising nearly 4% in today's stock market.

Elsewhere, Leaderboard stock Chipotle was up 1.5% after finding support at the 50-day moving average Monday. This serves as a follow-on buy area for the fast-casual restaurant stock, but investors should remain cautious. Market risk remains high as the official market outlook is in correction.

For further in-depth analysis on more growth stock leaders, check IBD's Leaderboard.

Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary. 

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