Investors piled into IBM (IBM), Cree (CREE) and a handful of other names on Wednesday, ignoring a weak reading on September housing data as indexes closed mixed.
X The Dow broke out of its recent trend of small advances, jumping 0.7% in its biggest move since Sept. 11. That was enough to close above the 23,000 mark as IBM soared 9% on a turnaround earnings report. Goldman Sachs (GS) also had its shoulder to the wheel, with Intel (INTC) and Travelers (TRV) also posting gains of better than 1%.
The Nasdaq and S&P 500 held to the recent trend, each ending a fraction higher. That was enough for new high on the S&P 500 and Nasdaq.
IBM, Cree, Jupai Soar; Goldman, Lam Research Earn Honorable Mention
IBM was the story of the day, vaulting 8.9% to its best session since January 2009. Analysts immediately began ratcheting price targets higher after the company reported better-than-forecast earnings and revenue in its third quarter, and guided Q4 expectations toward the company's first revenue gain in at least four years.
The stock's gain hoisted shares back above their 40-week moving average and left them 12% below their February high.
Goldman rose 2.5%, recovering the ground lost on Tuesday following its earnings report. The stock is forming a cup with handle with a 247.17 buy point.
Chevron (CVX) notched the Dow's biggest decline, dropping 1.7% as details emerged on another fire damaging the company's El Segundo refinery in Southern California. Brokerages BMO Capital and Societe Generale downgraded the stock, while Morgan Stanley maintained its overweight rating.
Shares of Cree snapped 17% higher after the chipmaker and LED lighting leader turned in a just-enough fiscal first-quarter performance last Tuesday, including weak guidance. But new CEO Gregg Lowe's discussion of turnaround plans with analysts during the conference call sparked a rally that sent shares past a 29.94 buy point in a cup-with-handle base formed deep within a multiyear correction.
On the IBD 50 list, China's Jupai Holdings (JP) remained unstoppable, soaring more than 6% and giving it a 154% gain following an August breakout.
Another China-based name, Autohome (ATHM), hammered out a 4% gain after Credit Suisse initiated coverage on the stock with an outperform rating and a 70.80 price target. The stock is attempting to start up the right side of a two-month consolidation.
Lam Research (LRCX) was another winner, climbing nearly 3% after reporting a broad fiscal first-quarter earnings bet and raising its Q2 earnings outlook above consensus targets. Shares were extended going into the session, and ended the day up 17% from a flat-base buy point of 170.10.
RELATED:
IBM Gets Price-Target Hike After Earnings Report, Outlook
Fed Sees Economy Advancing Amid 'Widespread Labor Tightness'
GE's Expected Profit Surge Could BE Overshadowed By Dividend Fears
Follow The Market: Stock Market Today
Understand The Market: The Big Picture
