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Stock Indexes Quiet, But Urban Outfitters Skids Late

U.S. stock indexes tacked on small gains Tuesday, as the market lingered near recent all-time highs.

The Nasdaq crept 0.3% higher, while the S&P 500 inched up 0.2%. The blue chip Dow Jones industrial average added 0.4% as it crossed the 19,000 level. Volume in the stock market today was about 10% higher on the NYSE and about 7% higher on the Nasdaq, according to preliminary data.

While the indexes haven't been rising in long strides, a number of stocks have been making aggressive moves up or down.

In the S&P 500, apparel and accessories retailer Urban Outfitters (URBN) was one of the day's best performers only to undo it after hours. The stock sprinted almost 5% higher in twice its average volume in the regular session. Then the stock dropped about 9% after hours. Urban Outfitters reported quarterly results after the close. The Street's consensus estimate on earnings called for a 5% gain to 44 cents a share. Revenue was pegged at 5% to $869.07 million. The figures came in at 40 cents and $862 million, a double miss, according to preliminary data.

On the chart, Urban Outfitters cleared a 37.32 buy point in a shallow double-bottom base a little more than a week ago. The double-bottom base is a pattern that is shaped like a W. The middle peak plus 10 cents becomes the buy point. Urban's 5% buy zone runs to 39.19, which was nearly reached in Tuesday's regular session.

A stock should not be bought more than 5% beyond the ideal buy point.

Urban Outfitters is recovering from a deep sell-off in 2015, but Tuesday's quarterly results are a setback. The stock's IBD Composite Rating is a respectable 82. The Composite Rating combines all five IBD ratings into a single number. A rating of 82 puts the stock in the top 18 percentile.

In the IBD 50, a proxy for highly rated stocks, fast-food chain Jack In The Box (JACK) rose 6% in heavy volume. Jack fell 3% in after-hours trade Monday on quarterly results and weak guidance, but the bulls won Tuesday's battle. Jack retreated 4% in the first five minutes of trade and then reversed higher en route to its 6% gain. The low of the day nearly took Jack to its 50-day line, where it found support and then broke out. As Jack's case illustrates, after-hours trade is not always a reliable guide for a stock's action in the next regular session.

Also, in the IBD 50, metal products maker Worthington Industries (WOR) surged 5%, but volume was only average. Meanwhile, Ulta Beauty (ULTA) advanced 3% in volume 30% above average.

Blue chips were mostly up. Verizon Communications (VZ) and Home Depot (HD) held the day's biggest gains, 2.5% and 2%, respectively. Verizon is lowly rated, but Home Depot's 94 EPS Rating is the highest in the Dow. A rating of 94 means the stock is growing earnings faster than all but 6% of the stocks in IBD's database.

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