The stock market extended gains in afternoon trading Tuesday, with the S&P 500 leading the way. Retail earnings generated multiple headlines.
At 1:20 p.m. ET, the S&P 500 extended its gain to 1%. The Nasdaq composite rose 0.8% while the Dow Jones Industrial Average added 0.9%. The small-cap Russell 2000 climbed 0.4%. All indexes were at session highs.
Volume rose on the Nasdaq and fell on the NYSE vs. the same time on Monday.
The Innovator IBD 50 ETF rose 2.9%, extending its gains, as energy and other natural resources stocks led the way.
IBD 50 stock Catalyst Pharmaceuticals broke out of a cup-with-handle base in heavy volume. It is in a buy zone to 17.60 from its 16.76 buy point.
Digital World Acquisition rose nearly 5% as it continued volatile trading. Shareholders of the special acquisition company approved a one-year deadline extension to take former President Donald Trump's social media platform public.
Key Retail Earnings In Focus
The stock market had a number of earnings reports to mull on Tuesday morning, including some key retailers.
Best Buy rallied 11.7% after the consumer electronics chain beat profit and sales expectations for the October-ended quarter. The company expressed optimism about the holiday shopping season. Still, earnings slid 34% and sales dropped 11% from the year-ago period as the company extended a string of declining year-over-year results.
Best Buy is the best stock in the S&P 500 today. The stock is testing potential resistance at the 200-day moving average.
Dick's Sporting Goods beat October-quarter estimates and raised guidance for the balance of its January-ending fiscal year. Shares rose 5.5% as they continue forming an irregular base. Dick's also climbed back above the 50-day moving average.
Dollar Tree also topped quarterly expectations, but gave a mixed holiday forecast. The stock slid nearly 8.7%, dropping below the 200-day moving average.
Burlington Stores surged 18.5% in afternoon trading despite an 11% revenue decline and 17% slide in same-store sales. CEO Michael O'Sullivan acknowledged the discount apparel chain should have performed better.
"As we described in August, the consumer's frame of reference for value shifted significantly in 2022, but we did not respond aggressively enough to this shift," he said in the earnings statement. "So, in Q3 we took significant steps to improve the value and mix of our assortment."
O'Sullivan said those actions drove an improvement from mid-October through November. "We are encouraged by this, but given the external risks we are maintaining our guidance for Q4."
Stock Market Earnings: Analog Devices, Medtronic
Apparel chain American Eagle Outfitters jumped 18% and climbed above its 200-day moving average for the first time since September 2021. The company cited strong sales in its Aerie business, which is known for leggings and lingerie.
Outside retail, Analog Devices climbed more than 5% after the chipmaker reported earnings above analyst expectations. Management also raised its outlook. The move brought Analog Devices closer to the 167.96 buy point of a cup-with-handle base.
Medtronic lost 6.1% after a mixed quarterly report, in which EPS fell 2% and sales eased 3%. The company is best known for implantable cardiac devices. Medtronic stock is making its largest drop since June 11, 2020, when it fell 6.9%.
While there were no major economic releases this morning, several are due out Wednesday. Those include jobless claims, durable goods orders, new-home sales and the University of Michigan's consumer sentiment data.
