The Nasdaq composite and Russell 2000 turned in solid performances Thursday, with gains of 1.3% and 1.6%, respectively. The IBD 50 fared even better, as nearly half the names in the index of leading growth stocks rose 2% or more.
The strength in the broad market was mostly due to another round of strong earnings reports. Meanwhile, House Republicans passed a tax reform bill that's now in a divided Senate's hands.
X The Dow Jones industrial average and S&P 500 added 0.8% each. Preliminary data showed volume on the NYSE coming in lower than Wednesday's levels. Nasdaq volume edged higher.
In the stock market today, earnings winners were a dime a dozen as results from Cisco Systems (CSCO), NetApp (NTAP), NetEase (NTES) and Wal-Mart (WMT) impressed.
Cisco Systems jumped 5% to 35.88. Headed into earnings, Cisco's daily chart showed a cup-with-handle base with a 34.20 buy point and an alternate handle entry of 34.85.
NetApp soared 16% to 53.11. Similar to Cisco, it was floating near a buy point ahead of earnings.
NetEase rose 8% to 326.24. It's still in buy range from a 320.77 cup-with-handle buy point. Despite a big move higher in recent years, NetEase's latest breakout was from a first-stage base. That's because the Sept. 28 low of 253.20 undercut the low of a prior base, serving to reset the base count. The thinking behind a base reset is that enough sellers have been shaken out of the stock to pave the way for more gains.
Wal-Mart jumped 11% to 99.62 as Wall Street cheered a strong report and solid guidance. Wal-Mart's outlook for the current quarter was a lot different than Target's on Wednesday, when the latter warned of a "highly competitive holiday quarter."
RH Inc. (RH), formerly known as Restoration Hardware, vaulted 26% to 104.81 after the company reported strong preliminary third-quarter results and gave bullish sales guidance for 2018. Shares of RH have been on the move ever since CEO Gary Friedman announced a strategy shift to a membership model and fewer promotions.
Meanwhile, a couple of deals made headlines. Time Inc. (TIME) soared 28% on news it's considering a sale to fellow publisher Meredith (MDP). It's not the first time the two companies have talked. Separately, Emerson Electric (EMR) raised its bid for Rockwell Automation (ROK) to 225 a share, up from a prior bid that valued Rockwell at 215. Shares of Rockwell jumped nearly 3% to 193.61.
RELATED:
House Passes GOP Tax Plan, But Senate Bill In Doubt As Three Republicans Take A Stand
Tesla's Electric Truck Arrives Amid 'Production Hell,' Hot Competition
