The stock market turned in another solid performance Tuesday. Stocks today strengthened in the afternoon after Bloomberg reported that face-to-face trade talks between the U.S. and China will begin next week. The Dow Jones today ended with a gain of 0.65%, helped by strength in Coca-Cola (KO) stock.
XCoke jumped 3% to 58.21, helped by better-than-expected earnings and accelerating sales growth. Despite the strong move, Coca-Cola is still in the 5% buy zone from an alternate entry of 52.28. More importantly, the stock jumped from support at its 10-week moving average.
The Nasdaq composite picked up 0.6% and the S&P 500 added 0.7%. Preliminary data showed volume on the NYSE and Nasdaq coming in close to Monday's levels.
Snap (SNAP) stock, which had been testing support at the 10-week moving average for the first time after a breakout in early June, jumped 8% in early after-hours trading after reporting strong earnings.
Chipotle Mexican Grill (CMG) added 4%% in after-hours trading, also on strong earnings and a 10% jump in same-store sales.
Dow Jones Today: Financials Lead
American Express (AXP), Goldman Sachs (GS) and JPMorgan (JPM) also outperformed in the Dow Jones today with gains of around 2%.
American Express is extended after a breakout from a base in April and bounce off its 10-week moving average in early June.
Goldman is less than 5% above a breakout from a cup-shaped base with a 210.07 entry. JPMorgan, meanwhile, is vying for a breakout from a flat base with a 117.26 entry.
Financial stocks outperformed Tuesday, helped by a bump up in interest rates. The 10-year Treasury yield was recently trading around 2.07%, up 3 basis points.
Other Stock Market Gainers
In other stock market news, new issue Yeti (YETI) was a top gainer in the MarketSmith Growth 250. It blasted out of a second-stage cup-with-handle base, jumping 12% to 36.25. The buy point was 34.37. Yeti was featured in Tuesday's Stock Of The Day.
Innovator IBD 50 ETF (FFTY) edged higher by 0.2%. Inside the IBD 50, New Oriental Education (EDU) was a big gainer, up 9% to 107.32. A strong earnings report fueled a gap up over a 101.56 entry.
Homebuilders were among the weakest performers Tuesday, weighed down by weak earnings from PulteGroup (PHM). IBD's homebuilder group fell more than 3%.
Follow Shreve on Twitter @IBD_KShreve for more market insight and analysis.
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