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Stock Market Rallies On Data, Trump Tax Talk; Buffett Boosts Airlines, Apple

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Stocks powered to record highs again Wednesday to extend their win streak amid bullish economic data and President Trump's "massive" tax-cut rhetoric.

The Nasdaq and S&P 500 rose 0.6% and 0.5%, respectively, to extend their advance for a seventh straight session. The Dow Jones industrial average gained 0.5% for a fifth consecutive advance. The small-cap Russell 2000 also added 0.5%. Volume was higher across the board vs. Tuesday, according to preliminary numbers.

Strong retail sales and New York manufacturing data sparked early gains that were further fueled by Trump, who told retail executives his "massive" tax plan would be coming soon and would simplify the tax code.

Generic drug, wood products and airlines were among top gainers in the stock market today, while oil, metal ores miners and fiber optics stocks underperformed.

Procter & Gamble (PG) led the Dow with a 4% pop in heavy trade, making its highest level in two years. Shares are still in buy range from an 88.07 cup-with-handle entry. Activist investor Trian Fund Management on Tuesday disclosed a $3.5 billion stake in the personal care products giant. Jefferies boosted its price target to 101 from 99 and maintained a buy rating.

Apple (AAPL) pared an early 1% gain to 0.4% despite news that investor Warren Buffett and Greenlight Capital's David Einhorn boosted their stakes in the iPhone maker. Still, the advance marked Apple's second straight all-time high. Buffett upped his stake in the iPhone maker to 57.4 million shares in Q4, from 15.2 million in Q3., while Einhorn raised his stake by 11% to more than 5.8 million shares.

Delta Air Lines (DAL) lifted 3% in fast trade as it shapes the right side of a base. A regulatory filing Tuesday showed Buffett in Q4 added to his stakes in American Airlines (AAL), Delta Air Lines and United Continental (UAL), and also took a 43.2 million-share stake in Southwest Airlines (LUV).

George Soros took a 40,000-share stake in Delta in Q4 but exited United Continental. Hedge fund Appaloosa Management, meantime, bought a 160,000-share stake in United and doubled its position in Southwest. United and Southwest rose nearly 3% and 4%, respectively. United is near a 17-year high as it approaches a 76.90 entry of a flat base. Southwest is at all-time highs and far extended from an early December breakout and subsequent bounce off its 50-day line. American Airlines climbed 2% to reclaim its 50-day line.

IBD 50 stock NetEase (NTES) gained 2% in average volume ahead of its Q4 earnings due after the close. Analysts expect EPS of $3.44 on $1.58 billion in revenue. Shares of the Chinese online gaming company are in buy range from a 257.78 cup-with-handle entry.

Companies reporting earnings Thursday include Arista Networks (ANET), Charter Communications (CHTR), Hyatt Hotels (H), MGM Resorts (MGM), TransCanada (TRP) and Wendy's (WEN).

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