The Dow Jones Industrial Average moved higher in Wednesday's session, regaining much of the loss from earlier this week. The indexes closed near session highs while tech stocks led.
At the close, the Dow Jones industrials were up 1% as the index regained its 50-day moving average and 21-day exponential moving average. The index closed below these levels on Tuesday. The Nasdaq was up the most on Wednesday, up 2% after gapping down below the 21-day and 50-day moving averages on Monday. The index remains below these levels.
The S&P 500 also took back some losses Wednesday and reclaimed its 50-day line with a gain of 1.1%. However, the S&P 500 is still below the 21-day line. The Russell 2000 rose 2%, also outperforming on the upside. Volume was lighter on the Nasdaq and on the NYSE from the close on Tuesday, according to early data.
The yield on the benchmark 10-year Treasury note traded around 2.68% on Wednesday. Meanwhile, West Texas Intermediate crude continued higher, up 3.6% to $104.25 a barrel after a 6% gain on Tuesday. The S&P 500 sectors traded mostly higher, with consumer discretionary and technology leading. After outperforming in recent weeks, defensive sectors like utilities and health care trailed.
Walmart In Buy Zone, Leads Dow Jones
Among Dow Jones leaders, Boeing and Walmart led with gains of 3.8% and 2.6%, respectively. Walmart continued inside a 5% buy zone after a breakout from a long flat base with 152.67 buy point. Shares broke out on April 4.
On the downside, JPMorgan slid more than 3%. The bank sold off in heavy volume after it reported a drop in first-quarter earnings before the market opened. EPS fell to $2.63 a share, below estimates for earnings of $2.72 a share. But revenue came in at $31.59 billion, which exceeded the consensus estimate of $30.6 billion.
The first-quarter earnings season is kicking off this week with several major financial firms announcing results.
Investment management giant BlackRock also announced Q1 earnings early Wednesday. Adjusted EPS climbed 23% year over year, beating analysts' estimates. Revenue rose 7% to nearly $4.7 billion. The stock fell 0.2%.
This Rental-Home REIT Breaks Out
The Innovator IBD 50 ETF rose 2.4%, outpacing the major indexes. Earlier last week, the ETF broke below the 50-day line after finally reclaiming this level in mid-March. Growth stocks have struggled in the recent market.
None of the stocks in the MarketSmith Growth 250 index scored breakouts from bases in Wednesday's market, despite the broad market gains. However, some stocks made notable moves, including Marathon Oil, which moved above a three-weeks-tight entry at 26.50. This buy point serves as a follow-on entry for investors already in the integrated oil and gas stock.
Additionally, construction supplies chain Fastenal announced better-than-expected earnings today as higher pricing helped overcome rising costs. Fastenal stock climbed back above the 58.39 buy point of a cup-with-handle base. Shares initially scored a breakout on March 28, according to MarketSmith.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
