U.S. stocks advanced confidently Wednesday as several economic reports topped expectations and crude oil prices surged.
The Nasdaq padded its cushion above the 50-day line as the index rose 0.5%. The S&P 500 remained below its 50-day line while rising 0.4%. The blue chip Dow Jones industrial average popped 0.6%. Volume in the stock market today ran slightly higher on the Nasdaq and lower on the NYSE.
Oil stocks were among the day's best performers. Five of the day's top 10 gainers among industry groups were from the oil patch. Big gainers in the sector included contract driller Transocean (RIG), up 6%; drilling services provider Halliburton (HAL), up 3%; wellbore products provider Baker Hughes (BHI), up 3%; and oil and gas explorer Resolute Energy (REN), up 17%.
The Energy Information Administration reported that crude oil stockpiles fell for a fifth consecutive week, catching the Street by surprise. West Texas intermediate crude oil rose 2% to just under $50 a barrel.
In the IBD 50, a list of the best stocks by fundamentals and technicals, winners and losers were about evenly matched. The day's biggest gainer was Acacia Communications (ACIA), up 10%. Acacia raised earnings guidance for the second time in less than two weeks. The worst performer was Gigamon (GIMO), down 6%. Two investment banks downgraded Gigamon.
Three economic reports helped set the market's upbeat tone. Factory orders for August, the Institute for Supply Management's nonmanufacturing gauge for September, and U.S. Services PMI for September each topped the Street's consensus number.
A fourth report disappointed. The ADP employment report fell short of the Street's estimate. However, the private ADP report doesn't always match the U.S. Bureau of Labor Statistics' report. The government data will be released Friday before the opening bell.
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