Investors continued to hold out hope for an additional federal stimulus package Monday even after the weekend saw both parties rip the White House's $1.8 trillion counteroffer, with Senate Republicans calling the amount too much and Democrats decrying it as too little. But stocks nonetheless headed higher on the back of a massive push from a few tech stocks.
Helping the tech-heavy Nasdaq Composite advance 2.6%, to 11,876, was a 6.4% gain in Apple (AAPL), which will unveil its new iPhones on Tuesday.
Wedbush analyst Dan Ives, who rates the stock at Outperform, makes a compelling bull case.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"In what we would characterize as Apple's most important product cycle since the iPhone 6 in 2014, this week Cupertino officially unveils its iPhone 12 product lineup virtually on Tuesday kicking off its iPhone 5G supercycle." says Ives, who calls Apple his favorite 5G stock. "In particular we are seeing Apple and its Asian suppliers anticipate stepped-up demand for the larger 6.7-inch model which is raising the overall iPhone 12 expectations heading into this 'once in a decade' potential launch."
Dow component Microsoft (MSFT, +2.6%), which reported it foiled a plan to hack America's election infrastructure, also helped lift the broader indices.
Other action in the stock market today:
- The Dow Jones Industrial Average closed up 0.9% to 28,837.
- The S&P 500 gained 1.6% to 3,534.
- The Russell 2000 improved by 0.7% to 1,648.
All Eyes on Amazon
Also making hay was Amazon.com (AMZN, +4.8%), which roared ahead of its two-day Amazon Prime Day event that begins Tuesday.
While e-commerce stocks in general remain a potent source of potential growth, no company has the clout of Amazon, which has created its own shopping holiday out of thin air.
Consumers can learn everything they need to know about this year's Prime Day event here, but, from an investing standpoint, just know that analysts see 2020's Prime Day as pivotal, for multiple reasons.
"This year's event likely takes on its greatest significance yet, as the lockdown spurs further acceleration in e-commerce growth amid the underlying secular shifts," writes CFRA's Tuna Amobi (Buy), who adds that this year's edition "could eclipse the ensuing Black Friday and Cyber Monday Sales combined."
Also, note the timing: Prime Day, which usually occurs during summer, was pushed back several months because of the COVID-19 pandemic. It's now much closer to the traditional holiday shopping season – a period many retail experts already expected would expand even earlier this year to maximize sales.
That's a potential threat to several other retail stocks, some of whom are taking the fight to Amazon with their own competing events. Read on as we look at some well-known retail stocks that investors should watch carefully, especially over the next few days, as Amazon continues to try to swallow the industry whole.
Kyle Woodley was long AAPL, AMZN and MSFT as of this writing.
-
The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next ActBecause “Life is what happens when you’re busy making other plans.”
-
Five Destinations for Active and Chill Travelers AlikeWhether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
