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Apple Leads Dow As Stock Market Today Extends Win Streak After Fed

The major indexes pared gains after minutes from the Fed's latest meeting were released, but closed with solid gains in the stock market today.

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That extended their advance for a fourth straight session. The Nasdaq led with a 0.9% gain, while the S&P 500 and Dow Jones industrial average added 0.4% each. Small caps outperformed their bigger counterparts as the Russell 2000 rose 0.7%. Volume was slightly higher on both the NYSE and Nasdaq vs. Tuesday, according to preliminary data.

Stocks initially rallied amid signs of progress in U.S.-China trade talks. The Fed minutes showed a more cautious approach to rate hikes by policymakers at the December meeting. While further gradual increases are likely, several participants suggested replacing forward guidance language and putting emphasis on the "data-dependent nature" of policy decisions.

Tech stocks' recent resurgence boosted the Nasdaq, which now sits just 1% below its 50-day moving average. The support line is a key test for the tech-heavy index, which has advanced in nine of the past 10 sessions. The Dow and S&P 500 are 2% below their respective 50-day lines.

Apple (AAPL) led the Dow with a 1.7% gain. The stock appears to have found a bottom around 142 but has a long way to go before offering any buy opportunities. Shares are 14% below the 50-day line and 34% off their October peak. Despite new reports indicating Apple will cut production for new iPhone models due to slowing demand, CEO Tim Cook maintains the XR is its most popular product.

Microsoft (MSFT) weighed in with a 1.4% advance. The stock is 1% away from retaking its 50-day line and is 10% off its high.

Chip Stocks Rally In Stock Market Today

The chip, tech services and medical sectors were among the biggest gainers in the stock market today.

Beaten-down chip equipment makers are trying to come back. Lam Research (LRCX), Phototronics (PLAB) and Veeco Instruments (VECO) surged about 5% apiece. Applied Materials (AMAT) and ASML Holding (ASML) rose 4% each.

In the medical space, Intuitive Surgical (ISRG), which makes surgical robotic systems, gapped up and soared 7% to recapture its 50-day line. Tech services provider Globant (GLOB) surged 6% in heavy volume to a three-month high. Shares of the Luxembourg-based company are building the right side of a base with a 66.51 buy point.

Alcoholic beverage and telecom stocks lagged. Constellation Brands (STZ) slumped 12% in heavy trade after the beer and wine giant cut its full-year earnings outlook. Shares fell to their lowest level since early 2017.

Several medical stocks outperformed in the IBD 50. Abiomed (ABMD) regained its 50-day line with a 6% jump. Illumina (ILMN) and Medpace Holdings (MEDP) added more than 3% each.

The Innovator IBD 50 ETF (FFTY) climbed 1.4% for its fourth straight advance.

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