The Dow Jones Industrial Average rallied amid rising interest rate hopes. Donald Trump’s SPAC Acquisition of the digital world (DWAC) jumped on a key shareholder vote. Retail stocks gained after best buy (BBY) has released a bullish direction. Warren Buffett Stock Chevron (CVX) is in a buy zone.
A few noteworthy stocks made bullish moves. Pharmaceutical catalyst (CPRX) and Reliance Steel & Aluminum (RS) staged escapes.
Volume was mixed, rising on the Nasdaq but falling on the New York Stock Exchange, according to early data.
The yield on the benchmark 10-year Treasury fell six basis points to 3.77%. West Texas Intermediate crude jumped more than 1% to trade at just over $81 a barrel.
Stocks rose amid rising Fed hopes
Securities received a boost as comments from a key Fed official raised hopes that interest rate hikes may ease.
Cleveland Federal Reserve Chair Loretta Mester said she was open to the idea of the FOMC reducing the magnitude of interest rate hikes by 75 basis points in December.
Oanda’s senior market analyst said a moderation in rate hike expectations was one of the two main reasons stocks were rising.
U.S. stocks rally as Wall Street continues to expect the Fed to scale back its rate of tightening next month and on optimism that the risk of a railroad strike fueling inflation is low “, he said in a note to customers.
Earnings Nasdaq, IBD 50 leads
The Nasdaq closed near the day’s highs gaining 1.4%. Analog devices (ADI) stood out with an increase of 5.8%.
The S&P 500 also posted a 1.4% gain. AgilentTechnologies (A) was strong here, up 8.1%.
The S&P 500 sectors were all positive, with energy, materials and technology posting the best gains.
Small caps rallied well at the close, with the Russell 2000 closing up 1.2%.
The Innovator IBD 50 (FFTY) ETF, a benchmark for growth stocks, benefited from rich energy exposure and gained 3.4%.
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Dow Jones Today: Home Depot Shines
The Dow Jones Industrial Average had another strong session, up just under 400 points or 1.2%.
Intel (INTC) posted the biggest gain on the Dow Jones today, rallying 3%. It has moved away from its 50-day moving average, according to MarketSmith analysis.
Selling power (CRM), Walgreen Alliance Boots (WBA) and Dow Inc. (DOW) was close behind.
waltz disney (DIS) suffered a hangover after Monday’s strong gains, down 1.4%.
Donald Trump SPAC soars on key vote
Donald Trump’s acquisition SPAC Digital World surged after a key shareholder vote went in a favorable direction.
The fate of Digital World Acquisition, a special-purpose, blank-cheque acquisition company, was in limbo after a vote on whether to extend the merger deadline was repeatedly delayed.
Executives at Digital World, led by Patrick Orlando, now have until September 8 next year to complete the deal after shareholders approved the delay.
He still faces hurdles, including investigations by the SEC and federal prosecutors.
Trump Media and Technology Group’s main product at present is the conservative social media site Truth Social, a right-wing alternative to Twitter.
DWAC stock rallied at the close, up 5.7%. It did, however, close out the highs for the day. It’s down about 56% for the year, but off 12-month lows.
The stock is in the bottom 9% of stocks in terms of stock market performance over the past 12 months.
Retail stocks erupt amid bullish Best Buy earnings report
Retail stocks largely benefited after a bullish earnings report from Best Buy.
The consumer electronics chain beat Wall Street views on both the top and bottom results. Comparable sales also fell less than the company had feared.
But it was optimism about the Christmas shopping season that provided the biggest boost. The company raised its guidance for the full year and reiterated its outlook for the holiday quarter.
Best Buy stock ended the day up 12.7%, closing just below the 200-day moving average.
Among other retail stocks, Dick Sporting Goods (DKS) beat views and raised expectations for the rest of the year. dollar tree (DLTR) topped views but gave mixed advice.
DK’s stock jumped 10.1%, moving away from its 50-day line. dollar tree (DLTR) plunged 7.8% but found support at the 50-day moving average.
The SPDR S&P Retail ETF (XRT) jumped 2.7% and closed at highs.
Outside the Dow Jones: Warren Buffett Stock in the Buy Zone
Chevron stock is trading higher in a buy zone above an entry of 182.50. The relative strength line is turning higher after a decline.
This is a consolidation pattern from the first stage after undermining the lows of the previous stage two base flat. Nevertheless, the gains so far in 2022 are handsome, reaching almost 56%.
Warren Buffett stock has now been added to the prestigious IBD Leaderboard list.
Catalyst Pharma is trading near the top of a buy zone after breaking through a cup entry with a handle of 16.76. The RS line has reached new heights.
Biotechnology develops and commercializes therapies for people with rare chronic debilitating neuromuscular and neurological diseases. It is a member of IBD Sector Leaders, our most rigorous proprietary screen.
Reliance Steel is trading in a buy zone after breaking through a consolidation pattern entry of 211.76, according to MarketSmith analysis.
Overall performance is good. It is also in the top 7% of stocks by price performance over the past 12 months.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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