Blue chips led the stock indexes modestly higher Wednesday in late morning trade. Two Dow stocks rushed ahead: Visa (V) advanced 1.1% in volume that started on a strong note but then faded, and Goldman Sachs (GS) sped 1.2% ahead, also in volume that backed off from initial strength in the current stock market.
The Dow Jones Industrial Average added 0.4%, backing off early strong gains. The S&P 500 edged up 0.3%, while the Nasdaq edged up 0.2%. Small caps in the Russell 2000 slipped just below the break-even line.
Volume fell on the NYSE but rose mildly on the Nasdaq vs. the same time on Tuesday.
Goldman Sachs has traded sideways since gapping up 9% Jan. 16 on strong earnings.
In economic-related news, reports continued to hint at a compromise that would avoid a second U.S. federal government shutdown. On the China trade front, speculation was more common than any confirmed movement.
SPS Commerce got highlighted in an IBD Stock Spotlight column on Monday ahead of strong Q4 results issued after Tuesday’s close. Earnings rose 89% to 53 cents a share, well ahead of Wall Street views. Revenue grew 12% to $65.2 million.
Contract medical researcher Charles River Labs (CRL) gapped up 7% on view-beating results. Volume was more than 300% above average. The stock cleared a 129.65 correct buy point in a cup-with-handle pattern. The narrow handle began forming on Feb. 5 and can be seen clearly on a daily chart.
Metals miner BHP Group (BBL) skipped 1.9% higher, but volume was only 24% above average.
Design software provider Autodesk (ADSK) inched above a 160.04 entry, but volume was only 5% above average. The stock offered a double-bottom entry earlier this month, but volume was missing.
The Innovator IBD Breakout Opportunities (BOUT) ETF, which launched on Sept. 13 last year, rose as much as 1% before erasing those gains. At 19.65, BOUT is up 13% since Jan. 1.
Stock Ratings High
All of the above companies carry IBD Composite Ratings of 93 or better. A rating of 93 means the stock ranks in the top 7% among all the stocks in IBD’s database. The Composite Rating blends all five IBD ratings into a single number.
Notice, also, that the breakouts represent a variety of sectors and industry groups. This has been the case recently and it points to broad support for the uptrend.
Among IBD’s 197 industry groups, the day’s best performers included financials, oil groups, medical services, metal handling machinery and lodging. The day’s weakest performers included department stores and meat.
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