The major stock market indexes strengthened in the last hour of trading Wednesday, with all major indexes ending higher and closing at the highs of the day.
The Dow Jones Industrial Average inched up 0.1%, and the S&P 500 rose 0.3%. The Nasdaq composite pulled ahead 0.9%, while the small-cap Russell 2000 gained 1%.
Volume on the NYSE was slightly higher and on the Nasdaq mildly lower in preliminary numbers.
Dow Holds Support In Wed. Stock Market Trading
The Dow held support at its 50-day moving average, while the S&P 500 held above its 21-day exponential moving average. The Nasdaq remains above its 200-day moving average and its 21-day line. The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF added 0.8%.
Crude oil inched down 0.6% to $78.57 per barrel. The Energy Select Sector SPDR ETF trimmed 1.7%, dropping below its 21-day line.
Bitcoin futures rallied 8% to $24,125. The Innovator IBD 50 ETF ticked up 0.2%.
The 10-year U.S. Treasury yield added 5 basis points to 3.80%.
European markets were up, with the German DAX tacking on 0.8% and the Paris CAC showing dominance with its 1.2% gain. The London FTSE added 0.6% to close out the trading day.
January retail sales rose 3% vs. the 1.7% Econoday consensus. Excluding vehicle numbers, sales rose 2.3% vs. the expected 0.9% drop. Sales ex-vehicles and gas rose 2.6% vs. an expected 0.4% decline. January's rise follows drops in November and December, showing consumers are still confident in purchasing, while the job market remains strong.
The higher retail numbers on top of Tuesday's strong January CPI numbers have investors concerned the Fed will need to continue raising rates to tamp down the sticky high inflation numbers. But the stock market shook off those concerns.
Online Market Retailer, Solar Products Stocks Rally
Etsy rallied 6.4% and regained a cup-with-handle 140.56 buy point and the stock is in a buy zone to 147.59. Shares of the online retail marketplace have gained over 18% in 2023 so far. Etsy reports Q4 earnings on Feb. 22.
SolarEdge Technologies surged 9.1%. Late Monday, the company reported a beat on Q4 EPS and sales and gave Q1 revenue guidance. The positive report prompted several analysts to raise their price targets on the solar panel and inverter stock.
Shares are trying to break out of a cup-with-handle base with a 341.78 buy point, according to MarketSmith pattern recognition. The stock ranks first out of 23 stocks in the solar energy industry group. The group dropped to 185th out of 197 IBD industry groups, from 89th four weeks ago.
Analog Devices gapped up 7.5% in heavy volume, after reporting a beat on fiscal Q1 top and bottom lines. Shares of the semiconductor stock soared above the 5% buy zone of a cup base with 180.05 buy point.
Airbnb jumped 13.4% after the company reported better-than-expected Q4 sales and earnings and its first annual profit late Tuesday. The short-term rental platform gave positive Q1 guidance but warned of upcoming price cuts. The stock gapped above the 121.50 buy point of a cup-with-handle base.
Online travel company Tripadvisor pulled back from a morning spike, closing up 0.3%, after reporting better-than-expected Q4 earnings per share and sales.
Gaming platform Roblox gapped up 26.4% after posting higher-than-expected Q4 sales numbers. RBLX stock cleared a 41.68 handle entry in heavy volume.
Market Rally Keeps Rising; Three Key Earnings Movers
Stock Market Movers: Oil Stock Sinks After Earnings
Oil and natural gas producer Devon Energy gapped down 10.5% in heavy volume. The company reported worse-than-expected Q4 adjusted EPS and sales numbers. The stock was the S&P 500's biggest loser today.
Trade Desk gapped up 32.8% in heavy volume, after reporting higher-than-expected adjusted Q4 EPS and Q4 sales and giving positive Q1 revenue guidance. The digital advertising services firm also announced a $700 million stock buyback program.
Life sciences company Emergent BioSolutions jumped 12.5% after announcing it agreed to sell its travel health business to monkeypox vaccine maker Bavarian Nordic for up to $380 million. Bavarian's stock shed 1% on the news.
IBD 50 stock Credo Technology plummeted 46.8% in heavy volume, following a disclosure late Tuesday that April-quarter revenue is expected to be considerably lower than previously stated. The data infrastructure company guided revenue down to $30 million-$32 million from $54 million-$56 million, saying its "largest customer has reduced its demand forecast for certain Credo products."
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
