The Dow Jones Industrial Average closed 168 points higher in today’s stock market. Meanwhile, the other major indexes also rallied after a rough first trading session for 2021 on Monday. On Tuesday, investors awaited the results of two key electoral races in Georgia. The outcome will determine whether Democrats or Republicans take control of the Senate.
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For Democrats to gain control, they’ll need to win both seats. However, if Republicans win just one of those seats, they’ll maintain a slight majority.
A Democrat-controlled Senate would be positive for President-elect Joe Biden and his legislative agenda. On the other hand, if Republicans win, this will increase the chances of further legislative roadblocks in the upcoming term.
Indexes continued rallying in the final hour of trading on Tuesday. After notable losses from the prior day, the Dow Jones rallied back modestly and closed 0.5% higher. Meanwhile, the Nasdaq gained 0.9% and the S&P 500 rose 0.7%. The Russell 2000 small-cap index gained 1.7%, leading the market. Volume was higher on the Nasdaq but lower on the NYSE vs. the close on Monday, according to early data.
Stocks Breaking Out
The Innovator IBD 50 ETF (FFTY) showed a strong 2% gain Tuesday, beating the major indexes. The growth-focused index was boosted by top performers such as Futu Holdings (FUTU) and PerkinElmer (PKI). Both stocks broke out from proper bases.
Futu jumped over 20% as shares climbed past the 5% buy zone from a 51.20 cup-based buy point. Shares are now up more than 27% for the week and maintain a near-perfect 98 Relative Strength Rating. The Chinese online brokerage firm also maintains a perfect 99 Composite Rating.
Meanwhile, PerkinElmer broke out from a rare ascending base pattern with a 150.05 buy point. The stock rose 4.4% into the close as shares remain inside the 5% buy zone.
Other notable stocks breaking out on Tuesday included JD.com (JD) and Target (TGT).
Shares of JD.com rose above a 92.87 consolidation buy point. After gaining over 9%, the stock closed within the 5% buy zone.
Finally, retail giant Target’s stock briefly traded inside the 5% buy zone of a 181.27 flat base entry. Shares closed slightly below this area after rising nearly 2%. Target also maintains a strong IBD Composite Rating of 95.
Dow Jones Today
As for the Dow Jones, Boeing (BA) and Chevron (CVX) led on the upside with gains of 4.4% and 3.3%, respectively. Meanwhile, Visa (V) and Coca-Cola (KO) led on the downside with losses of over 1% each.
Apple (AAPL) rebounded Tuesday, after triggering a key sell signal in yesterday’s trading session.
Shares rose 1.2% and gained support near the 50-day line. The stock has yet to regain its prior cup-base buy point of 138.08. But Apple stock still remains above alternate entries at 125.49 and 122.09.
Finally, Johnson & Johnson (JNJ) was also among Dow stocks rising more than 1%. Shares of Johnson & Johnson closed high inside the buy zone of a new flat base with a buy point of 155.57, according to MarketSmith chart analysis.
Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary.
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