Stock Market Starts The Week With A Bang; Lululemon Stock Rallies – Investor’s Business Daily

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The stock market weakened in the last hour, but the major indexes held gains of about 1% midday Monday.
The Nasdaq added 1.1% in the stock market today. The Dow Jones Industrial Average gained 1.2%, while the S&P 500 rose 1.1%. Meanwhile, the small-cap Russell 2000 rallied 1%.
The Nasdaq tested its 50-day moving average while the S&P 500 continued to hold below its 50-day line. But the Dow climbed back above its 200-day moving average.
Volume fell slightly on the New York Stock Exchange and rose on the Nasdaq, compared with Friday’s trading at the same time of day.
The Invesco QQQ Trust (QQQ) exchange traded fund, which tracks the Nasdaq 100, jumped 1.1%. The Innovator IBD 50 ETF (FFTY) outperformed the major indexes and advanced 1.6%.
Earnings season is getting underway with chip-equipment maker ASML (ASML) reporting Wednesday and chip giant Taiwan Semiconductor (TSM) on Thursday. Other notable names announcing this week include Tesla (TSLA), Bank of America (BAC) and SLB (SLB).
Lululemon Athletica (LULU) gapped up more than 9% in huge volume on news it will join the S&P 500 index before the open on Wednesday. The stock broke out past the 406.94 buy point of a flat base. The yoga apparel stock is in the 5% buy zone reaching to 427.29. Shares retook the 50-day line.
Varonis Systems (VRNS) gapped up more than 6% in heavy volume and broke out of a flat base after hitting the 32.64 buy point, according to MarketSmith pattern recognition. Shares retreated below the buy point at midday. The stock and its relative strength line hit 52-week highs Monday. Morgan Stanley upgraded the stock to overweight from equal weight and raised its price target to 39 from 34.
Modine Manufacturing (MOD) soared 5.4% and made up some ground from Friday’s 9.6% drop. Shares reclaimed the 50-day line. But the stock remains below the 49.60 buy point.
Williams Cos. (WMB) gained 1.1% and hit the 35.46 buy point of a flat base. The natural gas storage and transportation company is in a 5% buy zone reaching to 37.23.
IBD 50 stock Trade Desk (TTD) sank 0.3% and tested its 50-day line as it forms an irregular base. Shares are on pace for a four-straight-days decline.
CVS Health (CVS) climbed 1.6% after the pharmacy chain reported CFO Shawn Guertin is taking a leave of absence due to family health reasons.
Charles Schwab (SCHW) rose nearly 5% after the brokerage firm reported higher-than expected Q3 earnings and lower sales.
Vista Outdoor (VSTO) plunged more than 24% after the company gave lower fiscal second-quarter sales guidance and announced it will sell its sporting goods business unit for $1.91 billion in cash.
Shares of Pfizer (PFE) popped more than 5%. The drugmaker lowered its full-year 2023 revenue guidance by $9 billion and its adjusted EPS on Friday. The company cited lower demand for its Covid-19 vaccine and treatments. Pfizer said it would start a cost-cutting program expected to save $3.5 billion per year. Shares of PFE are down about 34% this year.
Pfizer’s Covid-19 partner BioNTech (BNTX) sank more than 5% on the news. BNTX stock fell further below its 50-day line.
Rival Covid vaccine maker Moderna (MRNA) dropped nearly 6% in heavy trading in sympathy with Pfizer, while Novavax (NVAX) sank more than 7%. Moderna is the biggest loser in the S&P 500 Monday.
In other stock market action, Rite Aid (RAD) filed for Chapter 11 bankruptcy protection on Sunday. Trading in Rite Aid, which is below 1 per share, remained halted.
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