Stocks rallied into the close Wednesday, salvaging a mixed finish from a generally weak session.
The Nasdaq pulled off a 0.3% advance, while the S&P 500 added 0.2% and the Dow Jones industrial average dipped 0.1%. Small caps outpaced the general market, sending the Russell 2000 up 0.4%.
After the close, Netflix (NFLX) soared 8% on a better-than-expected Q4 report. Its subscriber growth also topped views.
A number of data points rolled out during the day, but had little impact. Consumer prices in December rose according to expectations, up 0.3%. Industrial production gained 0.8%, above views. The January Housing Market Index from the National Association of Home Builders dipped to 67 vs. a 70 reading in December, indicating lower confidence among builders.
The larger impact appeared to come from the Congressional confirmation hearing for Donald Trump's Commerce Secretary nominee Wilbur Ross, who indicated the new administration would levy more tariffs and anti-dumping duties on imported Chinese steel. Steel-related industry groups took three of the day's top five gains among the 197 industry groups tracked by IBD.
Federal Reserve Chair Janet Yellen, in a late-day speech, said data showed the economy near the Fed's targets for price stability and employment, and that she expected several interest rate hikes this year, though the timing of the increases remained uncertain.
Movers: Fastenal, UnitedHealth, Target, Cognex
UnitedHealth Group (UNH) led the declining issues on the Dow, slipping 2% in strong trade. The pullback stopped at the stock's 50-day moving average and less than 5% below the stock's Dec. 16 high.
Fastenal (FAST) led the S&P 500 with a 6% advance. The distributor of nuts, bolts and other maintenance and industrial hardware reported stronger-than-expected fourth quarter earnings. Revenue met company and analyst targets, and management raised the quarterly dividend to 32 from 30. The gain sent shares 3% above a 49.40 buy point in a nine-month cup-with-handle base.
Target (TGT) owned the low end of the S&P 500, dropping nearly 6% after lowering its fourth-quarter guidance based on weaker-than-expected holiday season sales.
Among IBD 50 stocks, Cognex (CGNX) posted the best gain, up more than 4% to take out a new high in above-average trade. The stock remains in a buy range above a 66.05 buy point in a four-weeks tight pattern.
Gigamon (GIMO) took the IBD 50's hardest hit, down 29% after warning investors it would not meet analysts' Q4 targets.
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