Stocks closed higher Wednesday in a session marked by dramatic reactions to quarterly results and in which Boeing (BA) posted its strongest single-day performance in at least a decade.
The Dow Jones industrial average strode ahead 0.5% to end at a fresh high. The Nasdaq fought to a 0.2% gain, and the S&P 500 — haltered by heavy losses from Akamai Technologies (AKAM) and Universal Health Services (UHS) — managed a narrowly positive finish. The Nasdaq and S&P 500 also made new highs before paring gains.
Some of the day's most dramatic moves came from big caps, not just Boeing, but Advanced Micro Devices (AMD) and AT&T (T). Akamai, United Health and Triumph Group (TGI) were on the casualties list.
The Nasdaq briefly took a new high before trimming gains. The Dow took and held new high ground above 21,681. Small caps slipped out of their recent strong performance, with the Russell 2000 dropping nearly 0.6% after climbing 0.9% to a new high on Tuesday. The Russell remained positive for the week, up 0.6% and working on its sixth straight weekly advance.
The Federal Open Market Committee voted to hold interest rates steady, and offered no signal that it had modified its stance toward an additional rate hike later this year, after increases in March and in June. The Fed also said it plans to begin reducing its $4.5 trillion in bond debt "relatively soon," a process many analyst had not expected to begin until sometime in 2018.
The major indexes had come off their highs well before the FOMC release, and mildly trended further lower after the 2 p.m. ET announcement. Gold Miners, appliance manufacturers and video game developers were the day's top-scoring industry groups. All stocks flying highest and lowest during the session moved in response to quarterly results.
Boeing, AMD Leaders; TAL, New Oriental Top IBD 50
Boeing led both the Dow and the S&P 500, powering up 9% in massive trade. The stock was already extended from its most recent buy point, and Wednesday's move sent shares more than 25% above that entry.
Leading chipmaker AMD pared its gain back to close 5% higher, after gapping up 11% at the open. It reported second-quarter earnings of 2 cents a share from a year-ago loss and a 19% jump in revenue, which topped expectations. The strong-volume move left shares in buy range above a 14.77 buy point in a cup-with-handle base.
Security brand Brink's (BCO) locked up a 14% gain for the day, easily taking out a new high on stronger-than-expected second-quarter results and a boost in full-year guidance. Silicon Laboratories (SLAB) spiked 11% and U.S. Steel (X) rumbled ahead 7%.
Among IBD 50 stocks, China-based education stocks once again set the pace. TAL Education (TAL) jumped more than 3% ahead of its earnings report Thursday after the close. New Oriental Education (EDU) also gained 3% in above-average trade, following through after Wednesday's upside reversal. New Oriental is in buy range after breaking out past an 82.72 cup-with-handle buy point.
In addition to AMD, breakout names included Zion's Bancorp (ZION), Broadcom (AVGO) and Electronic Arts (EA).
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