Another strong day for Tesla (TSLA) helped the Nasdaq composite to a 0.6% gain Tuesday. Small caps outperformed along with the Nasdaq, while the NYSE indexes lagged.
XAt the close, the Nasdaq outperformed, rising 0.6%. Tesla was a big gainer in the Nasdaq 100, although the stock more than halved a 6.9% intraday gain. Other strong gainers in the Nasdaq 100 included China-based JD.com (JD), Automatic Data Processing (ADP) and Workday (WDAY).
The S&P 500 edged up 0.2%, while the Dow Jones ended mostly flat. Preliminary data showed volume on the NYSE and Nasdaq coming in slightly higher than Monday's levels.
Small caps outperformed and the IBD 50 turned in another solid showing. The Innovator IBD 50 ET (FFTY) jumped 1.6% to an all-time high. Top gainers included Twitter (TWTR), Grubhub (GRUB) and Palo Alto Networks (PANW). Shares of Twitter jumped 5%, helped by positive comments from JPMorgan.
Tesla Stays In Rally Mode
Tesla stock ended off highs but still rose 3% after KeyBanc gave an optimistic forecast for Model 3 deliveries and raised its revenue guidance for the current quarter. Separately, Tesla on Tuesday announced plans to cut about 9% of its workforce.
Tesla broke out of a downtrend last week when shares jumped nearly 10% on June 6 in heavy volume.
RH Soars On Earnings
In stock market results today, RH (RH) was a huge winner in the retail sector, surging more than 30% in heavy volume. A big earnings beat and bullish earnings guidance were the catalysts.
Small cap KMG Chemicals (KMG) was another earnings winner. Shares jumped 12% to 79.26. Headed into today, it was just below a 70.70 entry.
Elsewhere, Molina Healthcare (MOH) cleared a 91.25 buy point Tuesday, rising nearly 5% to 95.16.
Defense stocks lagged on the heels of the summit between President Trump and North Korea's Kim Jong Un. Raytheon (RTN) slumped nearly 3%, while Northrop Grumman (NOC) gave back 1.5%.
The two-day Federal Reserve meeting started Tuesday and a decision on interest rates will be out Wednesday at 2 p.m. ET. The Federal Open Market Committee is widely expected to raise its federal funds rate by a quarter point to a range of 1.75% to 2%.
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