Indexes rallied into the close Wednesday, closing with strong gains of more than 1%. Apple helped the Dow Jones Industrial Average climb more than 1% in the stock market today.
The Dow Jones index added 429 points, or 1.1%, as its tech component Apple climbed to a record high and a handful of other Dow components rose 2-to-8 points.
The Nasdaq composite closed 1.2% higher at another all-time high, and the S&P 500 climbed 1.1% and cracked the 5,600 mark for the first time. It made an all-time closing high for the sixth straight session. The Russell 2000 rose 1.1% also and closed above its 50-day moving average.
Indexes improved throughout the afternoon and burst higher in the final 15 minutes of trading.
Stock Market Today: Good Breadth
Advancers led decliners on the Nasdaq throughout of the most session, and by day's end advancers prevailed by about 11 to 6. On the New York Stock Exchange, gainers outdistanced losers by a 5-2 ratio. Volume rose on the NYSE and Nasdaq, early data showed.
Wednesday's positive action in the stock market today comes ahead of an important inflation report on U.S. consumer prices Thursday before the open. The CPI headline index is expected to rise 3.1% year over year in June, decelerating from a 3.3% increase in May.
The stock market today continues to reinforce a confirmed uptrend that initiated with a follow-through day on Nov. 1 last year. IBD's current outlook for stocks maintains a suggested exposure level of 80%-100% in stocks.
Elsewhere, crude oil rallied more than 1.3% to a session high of $82.66 a barrel. Gasoline futures held steady at $2.52 a gallon, virtually unchanged. Copper futures backtracked to a 0.3% gain at $4.59 per pound. However, the shiny metal with a so-called PhD in economics continues to remain in step with the S&P 500 on a year-to-date basis; both are up around 18%.
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Stock Market Today: Fed Chair Comments Soothe Concerns
During a session with the House of Representatives' financial services committee, Federal Reserve Chair Jerome Powell noted that the labor market is no longer overheated. Such a comment hints that the central bank is closer to taking a first step toward easing the monetary supply. According to IBD's MarketDiem newsletter, bond traders are "pricing in 75% odds of a Fed rate cut at the Sept. 18 meeting as of Wednesday morning. Investors are also betting on 76% odds of two quarter-point rate cuts before the end of 2024." By day's end, those probabilities changed minimally.
"The bulls rejoiced," Louis Navellier, veteran mutual fund manager, wrote in a comment emailed to clients. "The 2% inflation target is tunnel vision."
The next meeting takes place on July 31, where the chance of the Fed trimming the fed funds rate from its current target range of 5.25%-5.5% is merely 4.7%.
The yield on the key U.S. Treasury 10-year bond eased one basis point to 4.28%, well down from a year-to-date high of 4.73%.
Futures: Inflation Report Due; Market Flashes Biggest Warning In A Year
Updated as of 1:54 p.m. ET
Gold Shines Brighter Than Silver
Gold stocks rallied sharply on the stock market today as gold futures added nearly 1%, climbing as high as $2,393 per ounce before gains faded.
Agnico Eagle Mines, a new position in IBD's Leaderboard, rose more than 3%. It surpassed a 71.50 buy point. The 5% buy zone goes from 71.50 to 75.08. Wall Street sees the Canadian miner growing earnings 50% to $3.35 a share this year and boosting the bottom line 13% in 2025. Sales over the trailing four quarters topped $6.8 billion.
Despite a long period of decent sales gains, earnings had dropped five quarters in a row from the third quarter of 2022 through Q3 of last year. But profits jumped 50% to 57 cents a share in the fourth quarter of 2023 and 33% to 76 cents in Q1 this year, creating a pleasant turnaround. Analysts expect earnings to jump 32% and 99% in Q2 and Q3 vs. year-ago levels, respectively.
Agnico peer Alamos Gold backed off from morning highs, yet still rose 1.6%, on track for its fifth advance in six sessions. The midcap miner is close to moving past a 17.29 entry in its cup without handle.
Silver futures initially rose 1.2% to a session high of $31.44 an ounce, but then reversed for a 0.4% loss to $30.92. That said, Gatos Silver jumped 22% in active trading and cleared a narrow consolidation that offers a 13.30 aggressive buy point. Gatos, which is thinly traded but does have an average daily trading volume of 529,000 shares, has cruised 98% past a low-priced double-bottom base at 6.90.
Updated at 12:28 p.m. ET
Growth Stocks Take A Hit
Some leading growth stocks got punched lower, however. They included RxSight and Chipotle Mexican Grill, which recently executed an enormous 50-for-1 stock split. RxSight provides innovative customized lenses for patients having cataract surgery.
Also, some shoe stocks have gotten throttled by sellers, namely group leaders Deckers Outdoor, the maker of Ugg boots and Hoka running shoes, as well as Skechers USA and Crocs.
All three of the shoe companies have now gotten stomped below their 50-day moving averages.
Updated at 10:58 a.m. ET
The Walmart Edge As Economy Moderates
Walmart has surprised numerous fund managers. After busting out of a shallow double bottom at 60.89 in May, the stock has rolled over short sellers. On Wednesday, the Dow Jones blue chip slipped 0.2%. But Walmart's gain has reached 15% from the breakout point.
At this point, Walmart stock is extended, too far up in price to buy. But a potential test of the rising 10-week line could provide a follow-on buy opportunity.
The big move got spurred by solid fiscal first-quarter results. Earnings for the May-ended period jumped 22% to 60 cents a share on a 6% rise in sales. The discount retailing giant may be strategically positioned to gain more bargain-seeking customers as the U.S. economy continues to show signs of moderating.
Among large banks, Goldman Sachs, which reports second-quarter results on July 15, edged higher on the stock market today. It's trading above a flat-base entry at 471.48. Watch for big moves by its peers on Friday, when a host of Wall Street firms report results before the open.
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Stock Market: On The Downside
RxSight, an innovator in lenses to treat patients who have had cataract surgery, plunged 16% in volume that jumped five times its average pace. The stock had been forming a base-on-base pattern with a 66.54 entry. But the further drop below the 50-day moving average is an ominous sign.
RxSight, recently featured in IBD's New America column, almost doubled after clearing a prior base with a 33.77 buy point.
Chipotle tried to stem the recent bleeding. After falling nearly 9% in the prior two sessions, the leader in the restaurant industry edged slightly higher. But the stock had already delivered a defensive sell signal for recent buyers when it cleaved the 50-day moving average at the end of June.
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