Retail earnings reports dominated the headlines Wednesday and technology stocks outperformed as major stock indexes ended mixed. Meanwhile, the Fed minutes showed a Federal Open Market Committee ready to raise rates again at the September meeting but also concerned about the effects of a trade war on the economy.
XTop gainers in the Dow included Exxon Mobil (XOM) and Chevron (CVX), as oil prices rose. West Texas intermediate crude oil jumped 3.1% to $67.86 a barrel after the Energy Information Administration reported a sharper-than-expected drop in oil inventories. Nvidia (NVDA) was one of the top gainers in the Nasdaq 100, up nearly 4% to 262.82. It's recovering nicely after an earnings slide. A 269.30 flat-base entry is still in play.
The Nasdaq composite led the way, rising 0.4%. The Russell 2000 added 0.3%. The Dow Jones industrial average eased 0.3% and the S&P 500 fell less than 0.1%. Preliminary data showed volume on the NYSE and Nasdaq coming in lower than Tuesday's levels.
Fed Minutes: Rate Hike In September All But Certain
According to the CME Group FedWatch tool, markets are signaling a 94% probability of a quarter-point hike at the September meeting. At the December meeting, the probability is lower at 61%.
In stock market results today, the retail sector served up another round of earnings winners. Target (TGT) gapped up powerfully after reporting its best same-store sales growth in 13 years. Target was featured as an earnings option trade in the latest Earnings Preview column.
Results from Urban Outfitters (URBN) were also strong, but the stock reversed sharply lower after soaring 10% intraday. Sales growth accelerated for the fourth straight quarter, but that didn't stop sellers from coming into the stock.
Lowe's (LOW) jumped nearly 6% to 105.52 after the company reported earnings and announced it's closing its Orchard Supply Hardware business. Lowe's gapped above a prior handle entry of 101.43. An alternate handle entry of 102.08 is also valid.
The day's top-performing industry group was Retail-Home Furnishings. The group rose around 3%, helped by a big move in shares of La-Z-Boy (LZB). The stock rocketed 13% on strong earnings. RH (RH), another top performer in the group, added 3% to 154.76. It's working on a cup-shaped base with a 164.59 entry.
Technology Leaders
In the technology sector, Pure Storage (PSTG) gapped up powerfully and rose 14% to 25.15. The maker of flash-based storage systems swung to a fiscal second-quarter profit, helped by stronger-than-expected sales. It closed above an early entry of 24.95.
Veeva Systems (VEEV) added 2% to 88.99 ahead of its earnings report Thursday after the close. It's starting to get extended after a breakout from a double-bottom base with an 84.34 entry.
Leaderboard name Square (SQ) rose for the fifth straight session. Shares rose nearly 2% to a new high.
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