Nasdaq Up 0.8% As Microsoft Alphabet Stocks Make Strides

The Nasdaq composite rose 0.8% as some of its strongholds including Microsoft (MSFT) and Alphabet (GOOGL) made promising moves.

XAutoplay: On | OffThe Nasdaq is about 40 points from a new high at 6460 and headed for a fourth straight gain.

The S&P 500 rose 0.5%, adding a bit of cushion above its 50-day moving average. The index had spent much of the past two weeks below that line until the market started rebounding this week.

The Dow Jones industrial average rose 0.2% and the Russell 2000 led with a 1% increase. The small-cap benchmark is testing resistance at the 50-day line.

Volume was tracking higher compared with the same time Wednesday. Breadth was the best in many days, with winners over losers by about an 8-to-3 ratio on the NYSE and the Nasdaq.

Dow component Microsoft topped the 74.52 buy point of a flat base. Volume was lackluster, although it was also unimpressive in Microsoft's previous breakouts July 14, March 31 and in July 2016. Only the Oct. 21 breakout had unusually high volume, yet the stock made gains from all those entries.

Google parent Alphabet, the second largest stock in the Nasdaq, added 1.3% and rose back above the 50-day moving average. The stock continues to work on a pattern with resistance around 1,006.

Strength in biotechs was one reason the Nasdaq led. Biogen (BIIB) jumped more than 3% in 50% more volume than usual. Biogen hit a 52-week high and moved above the 312.50 buy point of a long consolidation.

The semiconductor sector was another area that saw good stock moves that helped the tech-heavy Nasdaq.

Microchip Tech (MCHP) and ASML (ASML) edged past buy points. Microchip topped an 86.04 buy point although volume was one-third less than normal. Netherlands-based ASML made it past the 155.83 entry of a flat base, but the price move wasn't particularly unusual and volume was below average.

Diodes (DIOD) cleared resistance around 27.50 as shares leaped 2%.

Health care and energy were the two strongest sectors, but retail, transportation and food industry groups lagged badly. Building stocks were mixed.

In the IBD 50, Universal Display (OLED) broke out past the 127.88 buy point of a double-bottom base. Volume was on track to nearly double its average, a good sign. The stock is emerging from a riskier late-stage base, however.

Shares started rallying Wednesday after Deutsche Bank gave bullish comments on the stock and the future of organic light-emitting diode (OLED) displays and lighting technologies.

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