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Stock Market Roars Back After Trump Iran Speech But Fade Late; FANG Stocks Show Some Bite

The stock market rallied Wednesday after a late-morning address by President Trump eased fears the U.S.-Iran conflict was spinning out of control. With oil prices tumbling on global markets on the easing of tensions between the U.S. and Iran, Dow stocks Chevron (CVX) and Exxon Mobil (XOM) both fell, along with other oil-related shares.

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Stocks gave back some of their gains just before the close on an unconfirmed report that several rockets had hit the Green Zone in Baghdad. Some news agencies reported warning sirens were heard in Baghdad.

The Dow Jones Industrial Average rose 161 points, or 0.6%, while Nasdaq jumped 0.7% after being up over 1% earlier in the day. The S&P 500 added 0.5%. The small-cap Russell 2000 gained 0.3%.

Volume was up moderately from Tuesday, according to preliminary data. NYSE trade rose 12%, while Nasdaq turnover edged up 3% in today's trading.

The stock market surged following Trump's remarks that "Iran appears to be standing down," which he called a "very good thing for the world."

Oil prices plunged nearly 3.7% to $63.38 a barrel on the New York Mercantile Exchange, sending shares of even major oil companies down. Dow oil mainstay Chevron dropped 1.1%, while Exxon Mobil shed 1.5%.

The drop was broad. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) plunged 3.8%, as the market took down a broad swath of the energy industry.

IBD 50 Back In The Green

Meanwhile, the IBD 50 list, hit hard during recent U.S.-Iran turmoil, was mostly green. Just 10 names on IBD's signature growth-stock list were down. Among the biggest winners were software names.

Paycom (PAYC) jumped 1.3%, as it easily cleared a 280.05 buy point out of a flat base. The maker of cloud-based software for workforce and human relations managers has a string of double- and triple-digit EPS increases dating back to the beginning of 2015. It has a sterling 99 Composite Rating, and ranks first in the computer software-enterprise group.

Another cloud-based management software company, IBD 50 No. 1 stock Paylocity (PCTY), tacked on 0.6% as it continued to extend beyond the 5% buy zone over a 112.56 buy point from a cup base.  It also maintains a 99 Composite Rating, along with a 99 EPS Rating, from IBD.

Computer security software stock Fortinet (FTNT) moved up 1.6%, as investors continued concerned about possible cyberattacks from Iran, Russia or China. Fortinet moved past a 92.99 buy point in early November. It's now more than 20% extended above that move, meaning its shares are eligible for profit-taking.

Imaging and publishing software stock Adobe (ADBE), meanwhile, rose 1.3%. That continued Adobe stock's rise from a cup with handle base with a 310.10 entry. It's now at a new high, but extended 11% from its buy point.

Among exchange traded funds, the Innovator IBD 50 ETF (FFTY) jumped o.5%.

Stock Market: 'FAANG' Stocks Rally

FAANG stocks also had a big day, as investors appeared eager to return to familiar, quality big stock names.

Facebook (FB) rose 1% to a new high, as it continued extended out of a cup with handle base from a 198.19 buy point.

Apple (AAPL) continued its assault on its own record highs, gaining 1.6%. Apple blew out of a short flat base with a 221.47 buy point on Sept. 11, and never looked back. It's up 37% since then.

Online retailing behemoth Amazon (AMZN), another "A" in "FAANG," dropped 0.8% as it builds the right side of a lengthy saucer base. Amazon remains well below its 2,035.90 buy point.

Entertainment streaming pioneer Netflix (NFLX) had one of its better days of late, surging 2.6% to break out of a cup with handle base above a 338.10 buy point. The Netflix stock turnaround started in early October, after it reported a stronger-than-expected EPS rise of 65%. That prompted a brief drop in the stock by those selling into the good news, followed by a sustained rally in its shares.

Finally, Alphabet's Google (GOOGL) rose 0.7%, as it continued its move extended above a 1,268.49 buy point from a cup with handle base. Google broke out on Oct. 28 and is now 11% extended from its base. One bullish sign: Its relative strength line followed the price to a new high, as did Apple's.

Please follow Jones on Twitter at @IBD_TJones for more on growth stocks, financial markets and the economy.

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