Stocks closed well off session lows but slightly higher Tuesday.
The Nasdaq climbed 0.2%, while the Dow Jones industrial average and S&P 500 closed with tiny gains of less than 0.1%. Volume was lighter across the board vs. the same time Monday, according to preliminary figures.
Biotech, energy and transportation stocks led the upside in today's stock market action, while telecom, oil and building-related plays lagged. In economic news, August housing starts and building permits disappointed. All eyes Wednesday will be on the Fed, when its interest rate decision is due out around 2 p.m. ET. A news conference follows at 2:30 p.m. ET.
Amphastar Pharmaceuticals (AMPH) soared 12% to an all-time high in massive trade. Shares are 19% extended past a 17.90 cup-with-handle entry, nearing profit-taking range. The biotech, which develops injectable and inhalation drugs, will be added to the S&P SmallCap 600 index Wednesday after the close.
Supernus Pharmaceuticals (SUPN), a maker of drugs to treat central nervous system disorders, pared its gain to 2% after rising as much as 5% intraday. The biotech is 6% extended from a 24.10 flat-base entry from where it broke out Thursday.
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On the IBD 50, Acacia Communications (ACIA) reversed lower for a 4% loss. Shares of the fiber-optic products maker remain well extended past a 45.85 buy point of a short IPO base cleared in July.
LGI Homes (LGIH) shed nearly 2% in light trade to test its 50-day line. The stock appears to be finding support there, but it also triggered a sell signal Sept. 9 when a sharp dive erased a double-digit gain from a 36.54 buy point. Homebuilders flagged Tuesday on weak housing starts data.
IBD 50 stocks on the rise included Biogen (BIIB), up 1% amid strength in the biotech sector, as the stock builds a flat base with a 333.75 buy point. The biotech group has jumped to No. 11 among IBD's 197 industry groups, from No. 38 six weeks ago.
Ireland-based drugmaker Shire (SHPG) added 1.5% in healthy volume as shares cleared a 203.47 flat-base entry. While the stock is still in buy range, be extra cautious with all purchases while the market uptrend is under pressure.
Besides the Fed meeting, there's little else on the economic calendar. The Energy Information Administration's weekly oil inventory figures come out at 10:30 a.m. ET. General Mills (GIS), CarMax (KMX) and Red Hat (RHT) are some of the noteworthy companies reporting earnings.
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