The stock market closed higher Wednesday, as the Nasdaq quickly picked itself up after a limp performance in the prior session.
XIndexes rallied in the final half-hour on word that U.S. talks with European Union officials resulted in concessions that ease trade tensions between the two trade partners. The EU agreed to cut industrial tariffs and to import more soybeans from the U.S., Dow Jones reported. President Trump met with European Commission President Jean-Claude Juncker at the White House Wednesday afternoon and the two were set to make an announcement.
The Nasdaq rose 1.2% and closed near session highs while making a record high. It was the opposite action that the Nasdaq made Tuesday, when it erased a gain of more than 1% to close flat.
The S&P 500 added 0.9%. The Dow Jones industrial average climbed 0.7%. Boeing (BA) fell nearly 2% but closed with a 0.7% loss after the company reported results. Boeing beat profit views but trade friction with China and other nations clouded the report.
Volume rose on the NYSE and fell on the Nasdaq, according to unconfirmed data.
Among subsections of the market, small caps lagged as the Russell 2000 trailed with a 0.3% increase at the closing bell. Small-cap financials were weaker, while health care and energy small stocks outperformed.
Transportation stocks rebounded, with railroad, trucking and airfreight in the top 12 of 197 industry groups. Strength in software, internet and networking shares contributed to the Nasdaq's outperformance. The Dow transports rose 2.3%.
Earnings Spark Breakouts
Earnings reports are flooding into Wall Street, causing a number of breakouts.
Usana Health Sciences (USNA) gapped out of a flat base, closing well above the 121.25 buy point and out of buy range. The maker of health supplements and personal care products reported a 39% surge in earnings, beating expectations.
Thermo Fisher Scientific (TMO) broke out past a 226.54 buy point in active trading after surpassing profit estimates and raising guidance.
Robert Half International (RHI) gapped past a flat base in heavy trading after the employment services firm beat earnings expectations. Taking into account the gap up, the stock's buy range goes to 75.87, It closed at 74.50.
A couple of chip stocks sold off after earnings reports.
Silicon Laboratories (SLAB) plunged nearly 6% in big volume despite that the chip company topped profit estimates. STMicroelectronics (STM) gapped down after meeting resistance at the 50-day moving average Tuesday, just ahead of its earnings report. The chipmaker also exceeded profit views.
Leading stocks, which slumped Tuesday, bounced back. The Innovator IBD 50 ETF (FFTY) rallied 2.9% and shares are rising again from a test of the 50-day moving average. No doubt, the IBD 50 owed much of its gain to Grubhub (GRUB). The food-delivery platform soared 23.5% after the company beat quarterly expectations.
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