Stocks Rally At Open; Financials Top Dow Chipmakers Lead Nasdaq

Stocks jumped at the starting gun Monday as tech and financial names topped the Dow and chipmakers rallied at the head of the Nasdaq 100.

XAutoplay: On | Off The Dow Jones industrial average and the S&P 500 sprung 0.6% out of the starting gate. The Nasdaq Composite swung up 0.9%, as Apple (AAPL) and FANG stocks Facebook (FB), Amazon.com (AMZN) and Alphabet (GOOGL) all surged more than 1%.

Commodities traded generally lower Monday, with oil and gold each down nearly 1%, but markets gained an early boost from overseas action, as stocks in China surged Monday, despite weaker-than-expected retail, manufacturing and investment data for July. Europe's markets picked up on the mood, with leading indexes firmly higher near midday: FTSE in London up 0.6%, CAC-40 in Paris ahead 1.3% and the DAX in Frankfurt 1.1% higher.

Fiat, Tower Semi Rocket, JD.com Dives, Micron, Nvidia MicroChip Surge

Goldman Sachs (GS), JPMorgan (JPM) and Apple led the Dow, up more 1% apiece.

Shares of Fiat Chrysler (FCAU) surged 7% in early action, after news reports said the automaker had recieved a takeover bid from an unamed Chinese company. The Automotive News story also said other China-based companies were considering bids. The gain left shares extended above an 11.75 buy point in a three-month flat base.

Tower Semiconductor (TSEM) sparked up 6% ahead of the open. The company announced Monday that its 18 micron chips were used by Japanese auto technology leader Denso in developing the side and rear-sensing radar used in the Toyota Camry launched in the U.S. in July. Tower shares retook a 25.89 buy point in a flat base, after an initial breakout failed.

Other chipmakers also hustled up early gains: Micron Technology (MU) popped 4%, Nvidia (NVDA) scrambled up 3% and MicroChip Technology (MCHP) posted a 2% gain.

JD.com sank 5%, the hardest hit among Nasdaq 100 stocks. China's largest online retail play reported higher-than-forecast revenue growth, but losses nearly doubled in its second quarter, weighed by rising marketing costs. The company also said it completed the spin off of its JD Finance unit,which it had agreed in January to sell for $2.1 billion, launching a direct competitor to Alibaba Group Holdings' (BABA) ANT Financial arm.

JD ended Friday up more than 40% since clearing a flat base in April. The stock is extended well into a profit-taking zone.

China stocks were active on the IBD 50 list, with Momo (MOMO) swept up 5%, YY (YY) jumped more than 3% in opening action. Momo had triggered an automatic sell rule on Thursday, falling more than 8% below a 46.50 buy point in a cup-with-handle base. YY is extended after clearing a flat base in mid-July.

Also among IBD 50 names, Nova Measuring (NVMI) climbed 5% in premarket action. The gain lifted the Israel-based maker of optical process-control equipment back above its 10-week moving average, below a 26.04 buy point in a possible double-bottom base.

Netflix (NFLX) dropped nearly 1% in opening trade. The streaming content provider expanded its star power, signing a development deal with Shonda Rhimes, the creator of ABC shows "Grey's Anatomy," "Scandal" and "How To Get Away With Murder." Netflix shares have lost ground over the last three weeks, giving up a 15% gain as it slid back below a 166.97 buy point in a flat base.

Canadian Solar (CSIQ) shed 7%. The company, based in Ontario, with operations primarily in China, reported stronger-than-forecast second-quarter results, but its Q3 revenue guidance didn't measure up to consensus views. The stock remains up 34% for the year , and below an 18.22 buy point in a five-week flat base.

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