The stock market rebounded late, leaving the major indexes near session highs at the closing bell and at record highs again.
XThe Russell 2000 added less than 0.2%. The small-cap benchmark topped resistance at the 1600 level Monday and is trying to add some room above that level. It was another 52-week high for the Russell.
The Nasdaq composite, S&P 500 and Dow Jones Industrial Average closed 0.2% higher. The three indexes made record highs — the Dow for the first time in one week.
Volume rose on the NYSE and fell on the Nasdaq, according to early figures.
Retail continued to shine. The SPDR S&P Retail ETF (XRT) rose 0.6% and is rising from a pullback to the 50-day moving average. It's a good sign to see the sector rally ahead of the holiday shopping season.
Burlington Stores (BURL) and Dick's Sporting Goods (DKS) were the sector's stars. Burlington soared to new highs despite a mixed third-quarter report. The discount apparel chain topped earnings views but revenue and holiday-quarter profit guidance was light.
More Retailers Boost Stock Market
Dick's gapped up to a 2-1/2-year high in heavy volume as it broke out of a flat base with a 41.63 buy point. The sporting goods company breezed past third-quarter estimates and raised its earnings guidance. Best Buy (BBY) surged 10% and fortified a breakout past the 75.50 buy point of a cup with handle base. Best Buy beat estimates for the October-ended quarter and raised its earnings guidance.
Ross Stores (ROST) cleared the 114.92 buy point of a flat base, but its RS line also lagged. The apparel chain on Thursday beat profit expectations and has been rising since then. Its EPS growth accelerated for a third straight quarter.
Aside from retail, some defensive sectors came out on top of Tuesday's trading. The S&P real estate and consumer staples sectors climbed 1.1% and 0.7%, respectively.
There was some good news for the housing market, which helped construction stocks. Homebuilding, cement & concrete and home furnishings were among the top 15 industry groups out of 197. The S&P CoreLogic Case-Schiller Home Price Index rose 0.4% in September, and October new-home sales of 733,000 beat forecasts.
IBD 50 Outperforms
Innovator IBD 50 ETF (FFTY) rose 1%, sharply outperforming the broad market. FleetCor (FLT) broke out of a flat base and held above the 304.75 buy point. The relative strength line is lagging the stock price, however. The stock was added to IBD Leaderboard.
New Oriental Education (EDU) is rising from support at the 50-day moving average, which creates a follow-on buy area for the stock.
Outside the IBD 50, Accenture (ACN), Discovery (DISCA) and Gartner (IT) also broke out but volume was weak in all three.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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