The major market averages moved higher Wednesday after Tuesday’s brutal tech sell-off. The tech-heavy Nasdaq, which briefly erased gains, powered higher with a 0.9% rise after Tuesday’s sharp sell-off. Meanwhile, the S&P 500 index gained 0.8% and the Dow Jones industrial average rose 0.6%, led once again by financials.
Among the Dow industrials, financial components Goldman Sachs (GS) and JPMorgan (JPM) rose nearly 1%. Goldman saw its price target hiked to 240 from 230 at Credit Suisse. JPMorgan briefly moved above a choppy double-bottom base with a 89.23 buy point. Heavy machinery company Caterpillar (CAT) moved up 1.3%.
On the downside, Microsoft (MSFT) rose 0.4%, trading back above its 50-day line after undercutting that support on Tuesday.
Within the S&P 500, financials were having a strong showing early Wednesday. Life insurer Prudential Financial (PRU) and Bank of America (BAC) both advanced more than 2%. Both stocks are consolidating above their 50-day moving average lines.
Leading brokerage firm Charles Schwab (SCHW) jumped 0.7% to 42.91, building upon yesterday’s breakout attempt above a 42.71 cup-with-handle entry.
Among analyst actions in the stock market today, Nvidia (NVDA) rose nearly 3% after Mizuho raised its price target to 170 from 145. The graphics chip maker has been consolidating sideways since a nasty reversal three weeks ago.
Meanwhile, online travel site Expedia (EXPE) was upgraded to buy from hold at Citi. Shares traded 1.1% higher, and remains extended from its 132.27 cup-with-handle buy point.
Among companies reporting earnings, KB Home (KBH) showed solid results late Tuesday, causing shares to climb 3.2% in early trading. The homebuilders have been steadily rising over the past several months, buoyed by mostly positive earnings results. KB Home reported better-than-expected Q2 earnings and sales results. CEO Jeffrey Mezger said, “The housing market recovery continues on a steady path, supported by favorable industry fundamentals.”
Shares are well extended from a 17.48 flat-base entry.
Within the IBD 50, RV-maker Winnebago Industries (WGO) rallied over 3%, while regional bank East West Bancorp (EWBC) moved up 2%. Winnebago is building a cup-shaped base, while the East West is moving back above a 57.34 flat-base entry.
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