The stock market today fell broadly then recovered some losses late Wednesday, after President Donald Trump threatened to hike tariffs on Chinese goods if a trade deal isn't signed. Plus, China angrily rejected a U.S. Senate bill intended to protect human rights in Hong Kong after five months of demonstrations. Despite rising trade jitters, a handful of retailers continued strong moves, including discounter Target (TGT) and home furnishings and refurbishing chain RH (RH).
XRH holds a full-size position in IBD Leaderboard.
The Nasdaq fell 0.5% Wednesday, while the Dow Jones Industrial Average dropped 0.4%. The S&P 500 and small-cap Russell 2000 Index both also fell 0.4%.
Volume rose, according to early data. NYSE turnover gained 8%, while Nasdaq volume swelled 17% from Tuesday.
Among IBD Stocks on the Move, retailers stood out.
Big box discounter Target gapped up more than 14%, its second big daily move since its Aug. 21 breakout. Target's rise came after it reported a bigger-than-expected 25% Q3 EPS gain. Target stock has risen 36% since breaking out of a consolidation with a 90.49 buy point in late August.
Its relative strength line broke sharply to a new high with its latest big gain.
Target is also leaping off the 10-week moving average, and is extended from a follow-on buy point, after testing the midterm price trend line in recent weeks.
RH, the former Restoration Hardware, jumped 4.1% as it benefited from rising housing starts and building permits in October and from reports last week that billionaire investor Warren Buffett had acquired a stake in the home furnishings retailer via his Berkshire Hathaway (BRKB).
RH stock is now extended after breaking out of a consolidation with a 162.20 proper buy point in September.
It is also getting out of the 5% buy zone following support at the 10-week moving average near 177.23.
Home Depot Slide Continues
Dow Jones industrials stock Home Depot (HD) continued a two-day slide after reporting disappointing Q3 results on Tuesday. It fell 2.2%, and breached its 50-day moving average line, a major warning sign. Even so, the stock remains in a buy zone just above a 219.40 buy point out of a late-summer consolidation pattern.
Home Depot rival Lowe's (LOW) gapped up 3.9%, briefly moving into the buy zone before falling back below the 118.33 correct buy point. Lowe's reported better-than-forecast EPS growth of 36% in its fiscal Q3.
Other big movers include a number of software stocks. Cloud-based personnel software maker Paycom (PAYC) surged 9% as it broke out past a cup base with a 259.81 buy point. Paycom stock has recently been added to both the IBD 50 and Sector Leaders lists. It carries a 99 Composite Rating from IBD and is No. 1 in its industry group.
Cloud-based workflow management software provider ServiceNow (NOW) continued its recent gains, rising 1.9% after being added to the S&P 500. Like Paycom, the Leaderboard stock is working on the right side of a consolidation pattern with a 303.27 buy point. But it is above an alternative entry at 276.60.
Another cloud-based worker management name, Paylocity (PCTY), continued its breakout over a 112.56 buy point from a cup without handle on Monday, gaining 0.6% Wednesday. The stock reported an 80% gain in Q3 EPS on Oct. 30, and since then has moved steadily higher.
Stock Market: Chinese Names Dive
On the IBD 50 list, Chinese stocks took a dive as the market digested the bad news on trade. A Reuters report, quoting "trade experts and people close to the White House," said a U.S.-China trade deal might not happen this year. It cited China's demands for major tariff reductions, and Trump's continuing threats to raise tariffs further if a deal isn't struck.
Language and test preparation giant New Oriental Education (EDU) stock tanked 2.7%, but still remained in the 5% buy zone above its 115.98 buy point above a rare ascending base.
E-commerce systems provider Baozun (BZUN) fell 0.6%. Despite a 91 Composite Rating and a best-possible 99 EPS rating, Baozun stock has remained near the bottom of a 19-week consolidation. It's now 25% below its previous high of 56.47 set on July 16.
Online retailing behemoth Alibaba (BABA) dropped 1.6%. It appears to have formed a new handle on its cup base, generating a 188.38 entry point.
Among exchange traded funds, Innovator IBD 50 ETF (FFTY) slipped 0.4%.
Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.
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