The stock market rallied higher early Monday, as it looked to rebound from last week’s losses. Apple (AAPL) was on pace to extend a losing streak ahead of this week’s product launch. Chinese e-commerce giant Alibaba (BABA) fell after founder Jack Ma announced his stepping down. Leaderboard stock and IPO Leader Roku (ROKU) hit a fresh high in morning trade, but pared its gains. (For updates on this story and other market coverage, visit the Stock Market Today.)
The S&P 500 led the stock market action with a 0.3% gain, while the Dow Jones industrial average traded 0.2% higher. The tech-heavy Nasdaq composite shed an early advance and slipped into narrow losses.
Among the Dow stocks, Apple fell 1.6% ahead of Wednesday’s annual fall product launch event for its new iPhone models. Shares are on pace to extend a three-day losing streak, as they fell about 5% from their all-time high set on Sept. 5.
Meanwhile, Nike (NKE) advanced about 2%, as the retail stock looked to regain its flat base’s 81.10 buy point, according to MarketSmith chart analysis. Wedbush raised its price target from 85 to 90, maintaining its outperform rating.
FANG stock Amazon.com (AMZN) turned lower after initial gains. Wells Fargo upped its price target from 2,110 to 2,300. Shares fell 4.3% over their thee-day losing streak, but remain squarely above their 50-day moving average line.
Video streaming hardware provider Roku hit a new high before trimming gains. Shares were barely up after being up as much as 2.3%.
Former Chinese stock leader Alibaba fell nearly 2% after executive chairman and founder Jack Ma announced plans to step down. CEO Daniel Zhang will succeed Ma. The stock is trading about 25% off its high amid the stock’s over-three month correction.
IBD 50 Stocks
Among the top growth stocks, cybersecurity leader Palo Alto Networks (PANW) gained almost 2%, as it attempted to move out of the 5% buy range from a 219.48 flat-base entry. The company reported better-than-expected earnings results late Thursday, boosting the stock over 3% Friday.
On the downside, Chinese stock Momo (MOMO) was the biggest loser with a 3% decline. Shares are tracing an abnormally deep cup with handle with a 47.85 buy point. The stock’s relative strength line is significantly lagging, indicating substantial market outperformance.