Stocks Rally As Boeing Helps Dow Climb To Record High

Stocks traded at session highs Wednesday afternoon as a steady upward path in the market took indexes to gains of about 1%.

X The Dow Jones industrial average led with a 1.1% increase and reached a new high, while the S&P 500 and Nasdaq composite rose 1% and 1.1%, respectively. It was quite a bounce from Tuesday’s bearish reversals in the main indexes. The Russell 2000 climbed 0.9% Wednesday as small caps also participated in the rally.

Volume was tracking lower compared with the same time Tuesday. While that indicated that institutional investors weren’t buying massively, breadth was strong. Winners led losers by 11-to-5 on the NYSE and by 17-to-9 on the Nasdaq. Those figures are nearly the flip side of Tuesday’s when losers had the upper hand.

Stocks continued climbing after the 11 a.m. ET release of the Fed’s Beige Book, which saw “modest to moderate gains” in economic activity in most U.S. regions at the start of 2018. The Fed’s outlook was generally positive.

The technology sector led the market, with chip, networking, data storage and some software groups making gains of more than 1.7%. Bullish earnings from ASML Holding (ASML) and preliminary results and strong guidance from Ichor Holdings (ICHR) helped the chip-equipment group to a gain of more than 4%. ASML gapped out of a base while Ichor gapped above the 50-day moving average.

Among Dow components, Boeing (BA) made a new high and was among the stocks rising in unusually high volume. But Goldman Sachs (GS) was off 2% and tested its 50-day moving average after the firm beat fourth-quarter estimates despite continued weakness in its trading operations.

Control4 (CTRL) leaped back above its 50-day moving average. The maker of home automation and remote monitoring systems is forming a base with a 36.09 buy point.

Atlassian (TEAM) had a dubious breakout Tuesday, but the software name bounced back above its 53.55 buy point and is in buy range. The relative strength line is near a new high. Results from Atlassian are due Thursday after the close.

Recently, a number of breakouts have showed weak relative strength lines. However, Commercial Vehicle Group (CVGI) broke out of a flat base and its RS line made a new high. Volume was strong, another positive aspect. The buy point is 11.95, and the maker of seats and mirrors for commercial trucks is already extended from that buy zone.


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