With Washington politics again seizing investors' attention, the stock market staged a solid rally on Wednesday. The Dow Jones Industrial Average list of 30 stocks was awash in green, with sports apparel maker Nike (NKE), jet maker Boeing (BA), and major tech names Apple (AAPL) and Intel (INTC) leading with solid gains.
XPolitics and trade once more dominated the markets, a day after House Speaker Nancy Pelosi announced she would launch an impeachment inquiry against President Trump. On Wednesday, in response, the White House released a transcript of Trump's phone conversation with Ukrainian President Volodymyr Zelensky at the center of Pelosi's investigation.
In that conversation, Trump asked the Ukrainian leader to "look into" actions taken by former Vice President Joe Biden and his son Hunter, who sat on the board of a Ukrainian energy company. But the transcript showed Trump promised nothing in return for granting the request.
Meanwhile, Trump on Wednesday also said a U.S.-China deal could happen "sooner than you think," helping the stock market to rebound from an early sell-off.
Both the Dow and S&P 500 rose 0.6%, while the small-cap Russell 2000 Index tacked on 1.1%. Down early, the Nasdaq powered ahead 1.1%.
Volume was again down. NYSE turnover fell 17%, while Nasdaq declined 12%, according to preliminary data.
Big Dow name Nike spiked 4.2% after it easily beat both EPS and revenue estimates in its fiscal Q1. The company's price spurt put it in a buy zone above 89.45 out of a cup with handle base. Despite its 57 Composite Rating, Nike stock is now at an all-time high.
Also on the Dow, troubled plane maker Boeing rose 1.2% after it announced plans to bolster its engineering oversight and agreed to pay 11 families in the Lion Air crash $1.2 million per victim. Boeing peaked at $446.01 a share on March 1, before falling sharply on news of a second major deadly crash with its 737 Max jets. Since the stock's initial big decline, it has largely moved sideways in a lengthy consolidation pattern. This month, it broke out of a cup with handle inside that long consolidation.
Trump's U.S.-China trade remarks helped the stock market move higher late. Consumer technology behemoth Apple jumped 1.5%, and is now just below a 221.47 buy point out of a flat base. Chipmaker Intel rose 2.4%, bouncing off its 200-day moving average as it continues to consolidate in price.
Goldman Sachs (GS) rose 1.1%. Goldman Sachs stock is completing a cup with handle base. Despite three straight quarterly EPS declines, its shares are just 5% below a 221.60 buy point and a new near-term high.
Among IBD's Stocks on the Move, Jabil (JBL) surged another 7.9%, one day after it gapped up 4.9% after reporting a stronger-than-expected 26% jump in Q4 EPS and a $600 million stock buyback. Jabil, with a 96 Composite Rating and a 95 EPS Rating, is now 11% extended above a 32.34 buy point out of a 10-week pattern.
Cloud-based e-commerce company Shopify (SHOP) jumped 6.5%, ending a string of eight straight daily declines. The company, No. 3 in its industry group, carries a 93 Composite Rating. Despite its recent price drop (which caused a sell signal), Shopify stock still holds a 98 Relative Strength.
Coherus Biosciences (CHRS), IBD's Stock of the Day, vaulted 2%, with Coherus stock clearing a 22.89 buy point out of an 11-week cup with handle base. Shares closed below that entry. Coherus' biosimilar drug for stimulating bone marrow, Udencya, is gaining market share against competitors, IBD noted on Wednesday.
Elsewhere, on IBD's Sector Leaders list, Essent Group (ESNT) increased 0.9% as it tries to regain a double-bottom base buy point of 50. The private mortgage insurer has a 97 Composite Rating and a 98 EPS Rating and is No. 1 in its industry group. Based on Wednesday's close, Essent stock is up 44.5% so far this year.
Brazilian-based payment facilitator PagSeguro (IBD) rose 3.7%. The IPO left a cup base in late May and moved up sharply, before encountering some selling. PagSeguro stock has repeatedly tested its 50-day moving average line in recent weeks. It has a 98 Composite Rating and ranks No. 1 in its industry group.
Elsewhere, the Innovator IBD 50 ETF (FFTY) added 0.9% as many tech shares rebounded from early losses.
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