The Dow Jones Industrial Average rallied amid rising interest rate hopes. The Donald Trump SPAC Digital World Acquisition (DWAC) jumped on a major shareholder vote. Store shares gained after Best Buy (BBY) issued bullish guidance. Warren Buffett Stocks Chevron (CVX) is in a buy zone.
Some notable stocks made bullish moves. Catalyst Pharmaceuticals (CPRX) and Trust Steel & Aluminum (RS) staged pimples.
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 bill fell six basis points to 3.77%. West Texas Intermediate crude oil was up more than 1% and was trading at just over $81 a barrel.
Stocks rose amid rising Fed hopes
Securities got a helping hand as comments from a key Fed official raised hopes that rate hikes could moderate.
Loretta Mester, president of the Federal Reserve Bank of Cleveland, said she is open to the idea of the FOMC cutting the size of December rate hikes from 75 basis points.
Oanda senior market analyst said a moderation in expectations for rate hikes was one of the top two reasons stocks moved higher.
“U.S. stocks are rising as Wall Street continues to expect the Fed to lower its rate of tightening next month and is optimistic that the risk of a railroad strike fueling inflation is low,” he said in a note to clients.
Nasdaq Earnings, IBD 50 Leads
The Nasdaq closed near the day’s highs, gaining 1.4%. Analog devices (ADI) was a standout, with an increase of 5.8%.
The S&P 500 also posted a 1.4% gain. Agilent Technologies (A) was strong here, rising 8.1%.
The S&P 500 sectors were all positive, with energy, materials and technology posting the biggest gains.
Small caps rose well into the closing stages, with the Russell 2000 closing 1.2%.
The Innovator IBD 50 ETF (FFTY), a gauge of growth stocks, benefited from rich exposure to energy and posted gains of 3.4%.
Dow Jones today: Home Depot shines
The Dow Jones Industrial Average had another strong session, rising just above 400 points or 1.2%.
Intel (INTC) posted the strongest gain on the Dow Jones today, up 3%. It pulled further away from its 50-day moving average, MarketSmith’s analysis shows.
Sales team (CRM), Walgreen Boots Alliance (WBA) and Dow Inc. (DOW) followed closely.
Walter Disney (DIS) was hungover after Monday’s strong gains and fell 1.4%.
Donald Trump SPAC peaks on key vote
The Donald Trump SPAC Digital World Acquisition jumped after a major shareholder vote moved in a favorable direction.
The fate of Digital World Acquisition, a blank check acquisition company, was in limbo after a vote on whether to push back the deadline for the merger was postponed several times.
Executives at Digital World, which is led by Patrick Orlando, now have until September 8 next year to finalize the deal after shareholders approve the postponement.
However, it still faces hurdles, including investigations by the SEC and federal prosecutors.
The main product of the Trump Media and Technology Group right now is the conservative social media site Truth Social, a right-wing alternative to Twitter.
DWAC shares soared to their closing price, rising 5.7%. However, it capped off the highlights of the day. It’s down about 56% for the year, but outside of the 12-month lows.
The stock ranks in the bottom 9% of stocks in terms of stock market performance over the past 12 months.
Retail stocks pop amid bullish best buy earnings report
Retail stocks generally benefited from a positive earnings report from Best Buy.
The consumer electronics chain beat Wall Street views on both the top and bottom lines. Comparable store sales also fell less than the company had feared.
But it was the optimism about the Christmas shopping season that gave the biggest boost. The company raised its full-year forecast and reiterated its holiday outlook.
Best Buy shares ended the day up 12.7% to close just below its 200-day moving average.
Including store supplies, Dick’s Sporting Goods (DKS) beat the number of views and raised the outlook for the rest of the year. Money tree (DLTR) viewed at the top but gave mixed guidance.
DK’s stock rose 10.1% and pulled back from its 50-day line. Money tree (DLTR) fell 7.8%, but found support at the 50-day moving average.
The SPDR S&P Retail ETF (XRT) soared 2.7% to close at highs.
Outside Dow Jones: Warren Buffett Stocks in Buy Zone
Chevron shares are trading bullish in a buy zone above an entry of 182.50. The relative strength line gets higher after a dip.
This is a first stage consolidation pattern after it undercut the lows of the previous second stage flat base. Nevertheless, the gains so far in 2022 are handsome, at 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 past a cup-with-handle entry of 16.76. The RS line has reached new heights.
The biotech develops and commercializes therapies for people with rare debilitating chronic neuromuscular and neurological disorders. It is a member of IBD Sector Leaders, our strictest proprietary screen.
Reliance Steel is trading in a buy zone after breaking a consolidation pattern of 211.76, according to analysis by MarketSmith.
Overall performance is good. It also ranks among the top 7% of stocks in terms of price performance over the past 12 months.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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