Stocks today closed higher after erasing losses, as the market continued to try to snap out of its correction.
XThe Nasdaq composite rose 0.5% for a third straight increase. The composite got some help from rebounding semiconductors. The Philadelphia semiconductor index rallied 1.3%.
The S&P 500 climbed 0.6%. The Dow Jones Industrial Average added 0.7%. Small caps lagged after the Russell 2000 lost 0.1%, but the index had fallen more than 1% early in the day.
Indexes made an afternoon jump after Bloomberg reported that U.S. officials are considering delaying tariffs on Mexico as talks continue over undocumented immigrants and illegal drugs from Central America. President Donald Trump has said the tariffs go into effect Monday.
Bloomberg quoted one unnamed official who said a 5% tariff will likely go into effect. But Mexico is working to address Trump's concerns and if Mexico acts on promises to crack down on migration, the duties could be short-lived.
Early figures showed volume was lower, the third time in as many days of index gains. That gives the market bounce a soft underbelly, indicating that institutional investors are reluctant to buy into the rally attempt.
In Stocks Today: Most Sectors Climb
Most sectors rose, with energy performing the best.
U.S. crude settled 1.8% higher at $52.51 a barrel. Commodities seemed to follow equities higher. The Energy Select Sector SPDR Fund (XRT) rose 1.9% but remains more than 20% from its prior high. The deep decline is why many market watchers say the energy sector is in a bear market.
Materials, consumer staples, technology and utilities were other well-performing sectors. Retail and transportation were the weakest sectors.
By industry group, fiber optics led thanks mainly to one stock. Ciena (CIEN) soared nearly 27% after the company beat profit estimates. Ciena stock broke out of a double-bottom base with a 40.86 buy point. The relative strength line also made a new high, a good sign.
One IPO Shines, Another IPO Clears A Pivot Point
Among the stocks standing out Thursday, Stitch Fix (SFIX) soared after the online apparel services company beat quarterly expectations and raised estimates for the current quarter. The stock rose nearly 15%, climbing back above the 50-day moving average. But Stitch Fix also felt upside resistance at the 200-day line.
The stock may be forming a new base but needs more time.
Innovative Industrial Properties (IIPR) tried to break out of a flat base. The stock topped the 93.34 buy point but struggled to stay above it. Volume was heavy, and the relative strength line is at new highs. The company is a real estate investment trust that owns a number of cannabis-growing greenhouses and other facilities that are used for medical purposes.
Science Applications International (SAIC) broke out of a large cup with handle. It topped an 82.60 correct buy point in heavy volume after the company topped earnings expectations.
Market risk remains too high to consider new stock purchases, however.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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