The stock market held strong gains early Tuesday, helped by strength in European markets overnight. The Nasdaq led the way, up 1.3%. The S&P 500 and Dow Jones industrial average added around 1% each. Volume on the NYSE and Nasdaq was tracking slightly higher than Monday’s levels.
In Europe, the CAC 40 was up 1.9% in late trading Paris, Germany’s DAX gained 1.7%, and London’s FTSE added 1%.
In economic news, April new-home sales spiked 16.6% to an eight-year high. IBD’s home-building group performed mostly in line with the market on the news, up about 0.9%.
In the stock market today, John Deere (DE) added more than 1.5%, thanks to a BMO Capital upgrade and a price target hike to 96 from 70. Volume was running already more than double its usual pace. But the stock is still more than 19% below a 98.23 52-week high, so it’s not yet close to a potential breakout.
Meanwhile, earnings reports were once again in focus. Toll Bros. (TOL) jumped 6%. Better-than-expected earnings and revenue were fueled by strong sales of luxury homes in California. Toll is a laggard in the group, though, still deep in base-building mode and trying to regain its slumping 50-day moving average.
In the health care space, Zimmer Biomet (ZBH) picked up 1% in heavy volume. It’s still in buy range from a 117.87 cup-with-handle buy point.