Stocks took a home-team bounce Wednesday, largely unaffected by the Fed's Beige Book or deepening tensions between the U.S. and North Korea.
X The major indexes ended pretty much where they started the session, with the Nasdaq Composite, the Dow Jones industrial average and the S&P 500 all leveling off with 0.3% gains. Preliminary data showed NYSE and Nasdaq volume was weaker on Wednesday than during Tuesday's sell-off.
The beaten down oil and gas drillers group once again nailed the day's best move among the 197 industries tracked by IBD. Helmerich & Payne (HP) was clearly influential, up more than 5% as it attempts to rebound from its deep, eight month dive. Another battered group, department stores, also had a good day: JCPenney (JCP) jumped 6%. Macy's (M) and Kohl's (KSS) added 5% apiece.
Among Dow Jones industrial names, Home Depot (HD) set out an early lead and held it through the session, ending 2.6% higher in above-average trade. That left shares less than 3% below a 160.96 buy point in a three-month flat base.
Aircraft systems and components maker United Technologies (UTX) dropped 1.6%, the worst hit among Dow stocks. Cowen & Co., downgraded the stock to market perform from outperform Wednesday morning, following Fitch's announcement late Tuesday that it was placing the stock on rating watch negative, due to United's Rockwell Collins (COL) acquisition.
Earnings reports delivered mixed results Wednesday. At the extremes, GIII Apparel Group (GIII) bounded 10% higher, putting it 69% above a May low and further up the right side of a 26-month correction. Dave & Buster's (PLAY) collapsed 10%,m surrendering hope of regaining support as shares dived 29% below their early June high. The restaurant company's outlook was weak.
HealthEquity (HQY) sent mixed signals after its Q2 report, rising 7%, but only after trimming its initial advance so that shares ended back below both their 10- and 40-week lines.
Truckmaker Navistar (NAV) was less conflicted, soaring on a solid fiscal third-quarter beat. The stock was already extended above a 31.47 buy point in an eight-month cup-with-handle base.
On the IBD 50, Control4 (CTRL) jumped 3% in solid trade, taking a new closing high.
China names bolstered the IBD 50, with New Oriental Education & Technology (EDU), Sina (SINA) and TAL Education (TAL) all ending up more than 2%. New Oriental ended just pennies above an 83.31 buy point after a failed first attempt to clear that mark. Sina and TAL are both extended.
Asian stock markets will be closely watched Wednesday night, as tension continues to rise between the U.S. and North Korea. In U.S. stock futures, investors will be tuned into airline and travel stocks, insurers an Florida-based companies including Lennar (LEN), Royal Caribbean (RCL) and Ryder System (R) as the category-5 Hurricane Irma claws its way toward a landfall late Friday along the Florida coast.
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