Investing.com – The Dow rallied Monday after clawing back early losses as a rally in tech stocks offset a decline in Boeing.
The rose 0.79%. The added 1.47%, while the gained 2.02%.
The Dow reversed its steep losses early Monday. Tech stocks rallied, led by a rise in Facebook and Apple as analysts upgraded their outlooks on both companies.
Bank of America upgraded its rating on Apple (NASDAQ:) to buy from neutral and raised its price target on the stock to $210 from $180, arguing expectations for a decline in the tech giant’s hardware sales are somewhat overly negative. Apple’s share price rose 3.5%.
Facebook (NASDAQ:) closed 1.5% higher after Nomura Instinet upgraded its rating on the social media stock to buy from neutral and raised its price target to $215 from $172.
The firm said its concerns over engagement trends at core Facebook have “eased,” as users were transitioning to the company’s Stories feature faster than it had anticipated.
The broader tech market was also supported by a rally in Nvidia (NASDAQ:) after the chipmaker agreed to buy Isreal’s Mellanox Technologies (NASDAQ:) for $6.9 billion.
The deal requires Chinese regulatory approval as the country accounted for 24% of Mellanox’s $1.1 billion of revenue in 2018. If the deal is approved, it could pave the way for more deals in the semiconductor industry as companies have held back after China failed to approve Qualcomm’s (NASDAQ:) planned $44 billion purchase of NXP Semiconductors NASDAQ:).
In industrials, Boeing (NYSE:) pared some losses to end the day down 5.3% after falling more than 11% intraday. General Electric (NYSE:) clawed back some losses from last week.
Boeing came under pressure in early trade after several airlines grounded the company’s new 737 Max 8 passenger jet following a deadly Ethiopian Airlines crash.