Stocks were trading near Monday’s best levels in the early afternoon, with IBD 50 stocks Nvidia (NVDA) and New Oriental Education (EDU) hitting new highs. But Facebook (FB) was down despite an analyst raising his price target.
In the stock market today, the Nasdaq rose 1.1%, while the S&P 500 and Dow Jones industrial average each added 0.9%. Volume was tracking higher than at the same time Friday. Small-cap stocks were outperforming, with the Russell 2000 up 1.2%.
Facebook fell 1.1% to 118.50 after falling in the morning to 117.35, close to a 117.09 buy point from an awkwardly shaped base. JPMorgan raised its price target on Facebook to 161 from 136. The New York Post also reported that CEO Mark Zuckerberg was testing music videos to compete against Alphabet (GOOGL) unit YouTube.
Oil prices surged, making energy stocks among the day’s best performers. The oil and gas drillers industry group rose more than 3%. A Goldman Sachs report said a domestic supply glut had turned into a deficit. Supply has been hurt in recent weeks by Canadian wildfires and Nigerian pipeline outages. Traders also worried about the political situation in Libya.
Reversing a previous bearish position, Goldman Sachs said U.S. crude could trade as high as $50 in the second half of the year, although any price increase in 2017 would be modest as supplies return to a surplus. West Texas Intermediate crude futures for June delivery rose 3.1%, up $1.45 a barrel to $47.66. That marked the best level in six months.
IBD 50 Stocks Rally
Among IBD 50 stocks, 40 were higher and 10 were lower. New Oriental Education rose more than 3% in solid volume. The stock moved out of a tight consolidation to a new high and is now is now more than 25% extended from a cup-with-handle base with a 33.01 buy point. Shares of New Oriental broke out in March. The company provides after-school tutoring for Chinese students.
NetEase (NTES), another Chinese ADR and IBD 50 stock, rose nearly 5%, also in solid volume. NetEase has been rising since reporting better-than-expected earnings last week and appears to be building the right side of a new base.
Pet food purveyor Blue Buffalo (BUFF), which broke out of a cup-with-handle base last week after reporting earnings, fell nearly 3%, below a 26.08 buy point. Blue Buffalo plans a 25-million-share secondary offering.
Graphics chipmaker Nvidia rose more than 3% to a new high. Nvidia had gained 15% Friday on the back of a stellar earnings report.