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Indexes Reverse Higher, Shrug Off North Korea; Gold Fades

The stock market was its normal, resilient self Tuesday as the Nasdaq composite turned a 0.9% intraday loss into a gain of 0.3% by the close. Even better, the Nasdaq reclaimed its 50-day moving average.

Sentiment turned negative quickly late Monday and early Tuesday on news that North Korea fired another missile, this time over Japan, but major stock indexes ended with decent gains.

X The Dow Jones industrial average added 0.3% and the S&P 500 picked up 0.1%. Preliminary data showed volume on the NYSE and Nasdaq coming in about 10% higher than Monday's levels.

The bond market saw more buying, sending the 10-year Treasury yield lower by 3 basis points to 2.13%. The yield hasn't been this low since November. The takeaway? If interest rates are indeed headed higher, the bond market isn't buying it.

United Technologies (UTX) outperformed in the Dow, rising nearly 3%, on a report that the company is close to consummating a deal with Rockwell Collins (COL) that could be worth north of $20 billion. Shares of Rockwell Collins rose 0.5%

Also in the Dow, Nike slumped 2%, hurt by news from Finish Line (FINL). Finish Line shares crashed 18% after the company slashed its full-year profit and same-store sales outlook, citing weakening sales and margin trends. Shares of Foot Locker (FL), Hibbett Sports (HIBB) and Dick's Sporting Goods (DKS) have been lagging badly after reporting weak earnings earlier in the month.

In the stock market todayCatalent (CTLT) gapped up on strong earnings, surging 14% to 40.27. The move put the stock near the top of a 5% buy zone from a 38.83 entry. The company provides drug delivery technology and development solutions for biotech and pharmaceutical firms.

Gold rallied again but ended well off session highs. SPDR Gold Shares (GLD) hit an intraday high of 125.87, up 0.9%, but ended down 0.2% to 124.42. The highly liquid exchange traded fund is still in buy range from a 123.41 entry, although Tuesday's reversal is not what you want to see so soon after a breakout.

Meanwhile, the market's initial response to Best Buy's (BBY) earnings was positive, but enthusiasm was short-lived as shares crashed 12%.

Sales at Best Buy rose 5% from the year-ago quarter to $8.94 billion, the best quarterly sales growth in at least five years for the electronics retailer. The company cited strong sales in computing, wearables, smart-home devices, mobile phones and appliances.

Best Buy had been holding above a 59.79 double-bottom entry, but the stock fell more than 7% below the buy point, triggering an IBD sell rule that says to cut losses in a stock at 7%-8%.

Inside the IBD 50, China-based stocks rebounded after rough sessions Monday. TAL Education (TAL), New Oriental Education (EDU) and Autohome (ATHM) showed gains ranging from 1% to 4%.

After the close, watch for earnings from Ollie's Bargain Outlet (OLLI). The stock is still holding above the 50-day moving average, but it's been getting resistance near 45 after a breakout over a 44.17 buy point. Shares fell 1% to 43.30 ahead of the results.

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