The Dow Jones Industrial Average remained higher at midday, ahead of the last Fed meeting of 2022. The blue chip index was up nearly 0.8% while the IBD 50 outperformed and one of its stocks broke out.
The S&P 500 was up 0.5% and the Nasdaq gained 0.3%. The small-cap Russell 2000 index led with a 0.9% rally.
Volume on the NYSE and the Nasdaq was higher compared to the same time on Friday.
The Innovator IBD 50 ETF rallied 1.5% at midday.
Dow Jones leader JPMorgan Chase upgraded Box from neutral to overweight, with a new price target at 34. Box is on the IBD 50 list. Shares are up over 6% today and are breaking out past the 29.57 buy point of a cup-with-handle base.
Crude oil rose 2.7% to $72.92 per barrel. According to reports, a 2023 oil shortage could follow after lockdowns ease in China. In addition, Europe could fall short by 27 billion cubic meters, according to the International Energy Agency.
The yield on the benchmark 10-year Treasury note rose 2 basis points to 3.58%.
The last rate hike of the year is expected Wednesday and will follow Tuesday's consumer price index numbers. The CME FedWatch Tool shows a 77% chance of a 50-basis-point hike, bringing the rate to the 4.25% to 4.5% zone. Also on deck this week: November retail sales and Purchasing Managers Index data, followed by Friday's quadruple witching, when options and futures expire.
Dow Jones and IBD 50 Stocks On The Move
Dow Jones component Caterpillar is building a handle in a cup base after a breakout at 238. Shares offer an alternate buy point at 239.95.
In the IBD 50, Genmab is building a cup base with a buy point of 49.17. Allegro MicroSystems is in a buy zone. It broke out on strong volume from a cup-with-handle base with a buy point of 32.07. AGCO is building a cup base with a buy point of 150.38.
Software company Coupa is surging over 25% on news that Thoma Bravo is acquiring the company for $8 billion.
Dow Jones health care leader Amgen has agreed to buy Horizon Therapeutics for over $27.8 billion, implying an enterprise value for Horizon of about $28.3 billion. HZNP is up 15%, near all-time highs. Amgen shares fell 1.5% at midday.
Lam Research rallied 0.5% after Deutsche Bank upgraded the chip equipment maker to a buy rating with a price target of 520. The stock appears to be forming a new base.
Goldman upgraded Gap to buy with a price target of 18. Shares are flat.
Shares of Qualcomm fell 0.5% after Wells Fargo downgraded the stock to underweight while maintaining the price target of 105.
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