Stocks followed Friday’s rally with a 98 point rally to close at 23,531. Trading volume was a bit lower. Trade talks between the US and China provided upside catalyst but, as we all know by now, it could go the other way as well. IBD market indicators are back in rally mode but these can change in short order if we see a couple high volume down days in the markets. Bonds performed well today as high yield bonds showed strength.
Healthcare stocks got a boost as the biotech buying spree continues. Eli Lilly is purchasing Loxo Oncology for $8 billion. The news sent Loxo’s shares up by 70%. This follows last week’s record buyout of Celgene by Bristol Myers Squibb.
Big US steelmaker Nucor today announced it will spend $1.3 billion on a new plate steel production facility in the Midwest. Nucor, based in Charlotte, NC currently has plants in North Kakalaki, Alabama and Texas. The new plant is expected to employ 400 workers and should be up and running by 2022. Company CEO John “Ferrous” Ferriola said that a solid economy combined with an improved regulatory, trade and tax environment helped to make this long-term investment viable.
The Consumer Electronics Show of CES is underway in Vegas. Hot items this year are AI, autonomous cars, autonomous flying taxis, electric scooters, smart skateboards and an Alexa powered Mirror?