Retail Stocks Lead Market As Indexes Hit New Highs

The stock market climbed to record highs again Wednesday, brushing off the weak performance in the latter hours of Tuesday's session.

Retail was the best sector Wednesday. SPDR S&P Retail ETF (XRT) jumped nearly 2% as the ETF rises from support at the 50-day moving average. Department stores, apparel retailers, discount chains and electronics stores were some of the top industry groups in Wednesday's trading.

In electronics, Best Buy (BBY) is in a buy area as it climbs from the 50-day moving average. Apparel chain Burlington Stores (BURL) also is in a buy zone from its 10-week moving average. Chinese e-commerce company Alibaba (BABA) is still rising from its 50-day line.

The Nasdaq composite added 0.9% for its 10th gain in the past 12 sessions. The S&P 500 rose 0.7%, and the Dow Jones Industrial Average picked up 0.9%. Small caps also participated, with the Russell 2000 up 0.7%.

A day earlier, the indexes gave up most of the day's gains and closed near session lows. That's weak action, but the selling did not reappear Wednesday. In fact, indexes did the opposite: They held most gains into the close.

Volume rose on the NYSE but fell on the Nasdaq, according to unconfirmed figures. Advancing stocks led decliners by a 3-to-2 ratio on the NYSE and Nasdaq.

China Shares Lift Stock Market

Chinese shares continued to rebound amid signs that the coronavirus outbreak is slowing. IShares MSCI China ETF (MCHI) rose nearly 2% and is now positive for the year.

But it was a bad day for the IBD 50, as NMI Holdings (NMIH) plunged after the company reported mixed fourth-quarter results. The stock plummeted about 13% just as it was about to break out of a cup base. Innovator IBD 50 ETF (FFTY) fell a fraction.

Ichor (ICHR) was the winner on the IBD 50, up nearly 4%. Ichor, which makes systems critical for the manufacture of semiconductors, is rising after finding support in a pullback to the 50-day moving average.

Cadence Design Systems (CDNS) rose past the 76.41 buy point of a saucer-with-handle pattern. But volume was below average, and the relative strength line is lagging. The company report earnings after the close, and shares were slightly lower in extended trading.

Iqvia (IQV) broke out of a saucer base. A handle showed a 162.23 buy point. The company this morning beat profit expectations. Also CFRA upgraded the stock to buy from hold and raised the price target to 185 from 148. It closed Wednesday at 166.11.

Data center designer Switch (SWCH) broke out of an undefined pattern with a 17.05 buy point. Credit Suisse raised its price target to 21 from 19 ahead of Switch's earnings report Thursday after the close.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia