The Nasdaq was on track for a fifth straight advance Monday afternoon thanks to strength in some techs and in its newest big member, PepsiCo stock.
Indexes were at session highs around 1:30 p.m. ET as the market extended last week’s advances. Buying seemed to pick up around 11:30 a.m. ET. The Nasdaq climbed 0.6% after a rebound in semiconductor and solar stocks provided some leadership.
The S&P 500 climbed 0.4%. It’s working on a three-day win streak and topped last week’s highs. The Dow Jones industrial average was up 0.2%.
In small caps, the Russell 2000 rose 0.6%. The index is mounting an effort to hold above the 50-day moving average after spending more time below that line than above it over the past week.
Volume was higher on the Nasdaq and lower on the NYSE compared with the same time Friday. The tech sector shared Monday’s leadership with telecom, industrial and utilities. Consumer stocks were some of the weakest. Gaming software, RVs, consumer electronics and specialty retail groups were down 0.9% to 1.5%.
PepsiCo (PEP) broke out of a cup-with-handle base in volume 20% higher than normal. The company announced today that Indra Nooyi is stepping down as chief executive officer in October and will remain chairman until early 2019. Ramon Laguarta, PepsiCo’s president, will be the next CEO.
PepsiCo is one of the 10 largest components in the Nasdaq. In December, the snacks and beverages giant moved its listing from the NYSE, where it had been listed for nearly 100 years.
IBD 50 Climbs
The IBD 50 kept up with the main indexes, up 0.5% in afternoon dealings. There were few big moves in the index. Viper Energy Partners (VNOM) led with a 4.5% surge to new highs. The oil exploration and production company announces earnings Wednesday after the close.
Kemet (KEM), Align Technology (ALGN) and Visa (V) are other IBD 50 stocks worth watching because all three are rising from pullbacks to the 50-day moving average.
For Visa, it’s a second pullback after successfully testing the line in late June and early July. Kemet is still slightly below its prior buy point at 25.79, and shares must be above that level if investors are to buy on a rebound off the 50-day line.
