Stocks closed higher Wednesday, after the latest policy statement from the Fed sent indexes to session highs, although indexes continued to make narrow price moves overall.
XThe Nasdaq composite led with a 0.4% gain for the day, the third straight day of price changes measuring 0.4% or less. The S&P 500 climbed 0.3% as it also traded in a narrow price band.
The Dow Jones Industrial Average ended 0.1% higher, lagging partly on weakness in Home Depot (HD). The home improvement chain sank to its 200-day moving average after it forecast fiscal 2020 sales growth below views and warned it expects slimmer margins.
Volume fell on the Nasdaq and NYSE, according to unconfirmed figures.
The Innovator IBD 50 ETF (FFTY) was a laggard, ending with a minimal gain. There was no clear loser on the IBD 50 list, but about 17 of the stocks fell, including some real estate, software and internet companies.
Small caps also lagged. The Russell 2000 was fractionally lower at the closing bell, though it remained near 14-month highs.
After taking the day off Tuesday, the technology sector led Wednesday. The Technology Select Sector SPDR ETF (XLK) rose 0.7%. Notably, the ETF is bouncing off the 10-week moving average, which provides an opportunity to invest in the sector fund.
IBD's chip equipment, chip design and chipmaking industry groups were in the top 12 of 197 groups in Wednesday's trading.
Fed Sees A Good Economy
The Fed, as expected, left interest rates unchanged, ending a string of three Federal Reserve meetings in which the fed funds rate target was cut by a quarter point. The central bank signaled a period of no changes in interest rates. Fed Chairman Jerome Powell cited a strong job market, continued expansion and controlled inflation, despite tariffs and other risks.
The yield on the 10-year Treasury note fell four basis points to 1.79%.
Breakouts were muted Wednesday, but Photronics (PLAB) soared 20.4% after gapping out of a flat base, according to MarketSmith pattern recognition. Shares climbed more than 20% from the 12.73 buy point — a gain at which taking profits is smart. But the outsize move also demonstrates unusual demand, and investors can choose to hold for a larger gain. Today's opening price of 13.80 can be used as a reasonable buy point in this case.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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