The Dow Jones Industrial Average and other major indexes scored solid gains in the stock market today to extend their recent volatile action ahead of U.S.-China trade talks Thursday.
XThe Nasdaq rallied 1%, the S&P 500 rose 0.9% and the Dow Jones industrials gained 0.7%. Small caps tracked by the Russell 2000 advanced 0.8%. Volume was lower on both exchanges vs. Tuesday, according to preliminary data.
The Dow Jones index, up as much as 260 points, settled for a 182-point gain. Stocks rose early amid reports that China is willing to negotiate at least a partial deal. On Tuesday, the Dow tumbled 314 points after the U.S. imposed visa bans on certain Chinese officials.
Only three Dow Jones stocks missed out on Wednesday's rally.
The biggest loser, Johnson & Johnson (JNJ) fell 2%, extending its Tuesday 1% loss. Shares sliced through the 50-day line, though below-average volume lessened the sting somewhat. A Philadelphia jury ruled the drug giant must pay $8 billion after its Risperdal antipsychotic drug caused teenage boys to develop breast tissue.
Microsoft (MSFT) and Intel (INTC), up nearly 2% each, were the biggest winners on the Dow Jones index. Microsoft made a bullish move back above its 50-day line as it trades 3% below a 141.78 buy point of a flat base. The Leaderboard and IBD 50 stock was featured in today's IBD Stock Of The Day column.
Apple Boosts Dow Jones
Apple (AAPL) climbed 1.2%, just shy of a new closing high. Canaccord Genuity raised its price target to 260 from 240 and reiterated a buy rating, citing "stronger than anticipated initial sales" for its new iPhone lineup. Apple stock remains in buy range from a 221.47 flat-base entry.
However, all stock purchases are riskier than usual with the market uptrend under pressure.
Intel and other chip stocks had a good day too. Chip gear makers rose 1.9% and chipmakers 1.5%. VanEck Vectors Semiconductor (SMH) surged 1.8%, while iShares PHLX Semiconductor (SOXX) leapt 1.6%. The ETFs are 4%-5% off their highs after a recent test of 10-week support.
Chips, department store retailers and software stocks led the upside among IBD's 197 industry groups. The scant downside included generic drugmakers, gold miners and solar stocks — the three groups each edged lower less than 1%.
Over in the IBD 50, InMode (INMD), Brazilian payments technology provider StoneCo (STNE) and Boot Barn (BOOT) each rallied more than 3%.
IBD 50 software leaders Upland Software (UPLD), Atlassian (TEAM), Fortinet (FTNT) and Veeva Systems (VEEV) delivered gains of about 2% apiece.
The Innovator IBD 50 ETF (FFTY) advanced 1% in today's stock market.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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