The Dow Jones Industrial Average rose 0.2% in early afternoon trades Tuesday despite renewed talk of interest rate hikes from the Federal Reserve. The closely watched index was headed for its seventh straight session of gains, and the second-longest winning streak thus far this year.
On Tuesday, Fed Gov. Christopher Waller called third-quarter GDP growth a "blowout" number that the Fed was watching closely. Earlier, on Monday, Minneapolis Fed President Neel Kashkari indicated that the rate hike cycle may not be at an end. Kashkari told the Wall Street Journal, that he would err on the side of overtightening monetary policy in order to bring inflation down to 2%.
On Nov. 1, the Fed left rates unchanged at 5.25%-5.5%. Fed Chair Jerome Powell is due to speak Wednesday and Thursday.
The S&P 500 climbed 0.4% in the stock market today while the Nasdaq sailed even higher, rising 1%. All three major indexes are holding above the 50-day moving average.
Meanwhile, if the Dow's gains hold up, its winning streak would beat a six-day rally in June. Dow stocks went on a 13-session tear in July. The index is up 3.3% so far this month and on pace for its best five trading days in a month since December 2021.
Volume on both the New York Stock Exchange and the Nasdaq was higher compared with the same time on Monday. Decliners beat advancers on the NYSE while the opposite was true on the Nasdaq.
The small-cap Russell 2000 index underperformed and fell 0.4%. The Innovator IBD 50 ETF rose 0.3% at the hour.
Meanwhile, West Texas intermediate crude added to signs of economic weakening and fell more than 2% to $78.57 a barrel. And the yield on the benchmark 10-year Treasury note fell 8 basis points to 4.57%.
Dow Jones Stocks
Intel rose after reports said the bellwether chipmaker may be the primary candidate for a multibillion-dollar deal with a U.S. defense facility. A buy point of 40.07 is close at hand as the relative strength line hits a new high.
Also on the Dow, Walt Disney plans to report its fiscal fourth-quarter and full-year results on Wednesday after the market close. Shares are holding above their 50-day moving average heading into earnings.
Stocks Moving Today
Outside the Dow Jones, Uber broke out in afternoon trading Tuesday after releasing its third-quarter results before the bell. Earnings of 10 cents per share topped views, but sales of $9.29 billion were lower than estimates. Uber stock has nearly doubled this year.
Energy drink maker Celsius remained 4% lower after paring some losses. Shares fell even though the company said third-quarter sales more than doubled to $385 million from $185 million in the prior-year quarter. Further, earnings of 89 cents a share marked a reverse from losses over the year-ago period. Shares have sliced below the 50-day line.
Trip Advisors gapped up and reclaimed its 200-day moving average after reporting results. Sales and earnings grew in the third quarter. TRIP shares jumped more than 11% in recent action.
Other earnings movers included Vertex Pharmaceuticals, which reported a 6% increase in sales in its third quarter and raised its full-year revenue outlook to $9.9 billion. Earnings of $4.08 per share were higher by 7 cents from the prior year. The stock fell in early trades but regained some strength and climbed to the top of a buy zone, though shares were down for the session.
In oilfield services, Tidewater gapped down despite sales growth of 56% and an earnings surge of 133%. Shares triggered a sell signal and fell below the 50-day line. Oil transporter International Seaways fell after earnings but pared some of those losses and rose above a proper buy point of 48.40.
Further, homebuilder D.R. Horton rose in a cup base with a buy point of 132.30 after results.
Datadog gapped up 30% after its quarterly results, shooting past its 50- and 200-day lines. Earnings accelerated for the second quarter in a row.
Market Win Streak Continues As This Sector Soars
Outside Dow Jones: Netflix Raises Prices
Netflix was up marginally as it worked to stretch its winning streak to seven straight days Tuesday. The streaming giant is raising prices ahead of the holiday season.
Akamai and Axon report at the market close. Akamai surged into a buy zone Tuesday while Axon slipped just short of one.
AMC, Fair Isaac and Duolingo report on Wednesday, along with Warren Buffett holding Occidental Petroleum. Trade Desk, Wynn Resorts and Li Auto will release quarterly results on Thursday.
Sterling Infrastructure tumbled below its 50-day line and undercut its base after third-quarter results. Air Products & Chemicals also crashed below a converged 50- and 200-day moving average and out of a consolidation. Sales declined for the second quarter in a row.
In medical systems, Shockwave Medical dived below its 50-day line as earnings stayed flat from the prior year.
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