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Dow Leads Broad Market Rally As 3 Dow Stocks Near Buy Point

Key indexes closed near session highs in the stock market today, boosted by bullish earnings results. The Dow Jones Industrial Average led the broad rally as all but one component stock advanced.

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The 30-stock Dow Jones index rallied more than 0.9%, the Nasdaq rose 0.9%, and the S&P 500 added 0.8%. Small caps tracked by the Russell 2000 also advanced 0.8%. Volume was mixed, higher on the Nasdaq but lower on the NYSE, according to preliminary data.

Nike (NKE) and Boeing (BA), up more than 2.4% each, were the top Dow Jones winners. Big-cap tech stocks Microsoft (MSFT), Apple (AAPL), Intel (INTC) and Cisco (CSCO) added more than 1% apiece in the broad rally.

Apple extended its win streak to four sessions as it gets within 2% of a 215.41 correct buy point. The iPhone maker said Tuesday its Apple Card is now available to all U.S. consumers. Apple partnered with Goldman Sachs (GS) to launch the credit card.

Home Depot (HD), which reported Q2 earnings Tuesday that beat views, rose 1.6%. It cleared a 219.39 buy point in a five-week flat base. On Tuesday, shares surged 4.4%. Wednesday's move came as rival Lowe's (LOW) posted quarterly results.

Lowe's soared 10% in heavy trade, vaulting back above its 50-day line for the first time in nearly a month. The building products retailer reported quarterly EPS that topped views by 15 cents and sales that edged past forecasts. Same-store sales rose 2.3%, above estimates for 1.9%.

Retail Stocks Rally

Retailers, software and other computer-related stocks led the upside among industry group winners in today's stock market. Nonalcoholic-beverage makers, automakers and hoteliers lagged.

The major discount chains group rose nearly 4%, boosted by Target (TGT). Target shares gapped up and soared 21% in nine times normal trade to a record high. It blasted past an 89.61 buy point of a cup with handle. But due to the breakaway gap past the entry, the market open price of 99.87 can be used in this case.

The Minneapolis-based discounter reported better-than-expected earnings, revenue and same-store sales. It also guided its full-year profit outlook higher.

Rival Walmart (WMT), which last week also beat estimates on both the top and bottom lines, closed flat after giving up a nearly 2% gain. The Dow Jones stock also boosted its full-year guidance. Shares are close to a 115.59 buy point of a flat base.

The retail rally lifted SPDR S&P Retail (XRT) to a 1.9% gain. The ETF is trying to come off the six-year low it hit last week. Consumer Discretionary Select Sector SPDR Fund (XLY) gapped up nearly 2%. It's close to retaking its 50-day line and is just 4% off its 52-week high.

Over in the IBD 50, stocks scoring gains of 3% or more included PagSeguro Digital (PAGS), SolarEdge Technologies (SEDG), HubSpot (HUBS) and Trade Desk (TTD).

IBD 50 Stock Breaks Out

HubSpot popped 3.4% to a new high, clearing a 192.59 buy point. The 5% buy range goes up to 202.22. Volume, though, was only 6% above average. The strongest breakouts tend to occur in trade at least 40% higher than normal.

Only a handful of IBD 50 stocks fell. Baozun (BZUN), the biggest loser, crashed 13% in fast turnover even though the Chinese e-commerce firm's Q2 results topped views. The stock has been living under its 50-day line for much of this month.

The Innovator IBD 50 ETF (FFTY) climbed 1%.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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