Tech stocks had an absolute field day Monday, with Internet stocks up around 2%. One of the most heavily traded of the techs, Facebook Inc. (NASDAQ: FB), was up about 3.5% and was the morning’s most actively traded name.
Is there anything special going on? Well the Dow Jones Industrial Average has hit a new all-time high and the S&P 500 is staring at 1,900. And those moves are like the flu — one investor picks it up from the doorknob touched by the last investor to walk into the room. Momentum is another word for it, and tech’s got it.
In addition to Facebook, Salesforce.com Inc. (NYSE: CRM) was up 5.6% and was the S&P 500’s leading gainer. Netflix Inc. (NASDAQ: NFLX) was up more than 4%, Pandora Media Inc. (NYSE: P) was up more than 4% and Twitter Inc. (NYSE: TWTR) was up almost 4%.
Why Monday? With momentum stocks the answer is almost always, “Why not today?” There does not appear to be any news-related reason for the tech stocks’ rise, so we might as well attribute the rise to a stampede out of value and dividend stocks and into growth stocks. That’s my story and I’m sticking to it.
Facebook shares traded at $59.01, up 3.1% in the noon hour, within the 52-week range of $22.67 to $72.59.
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