Major indexes closed near the day's highs Wednesday. The Dow Jones Industrial Average rose 0.7%, or 220 points, after Fed Chair Jerome Powell and the rest of the Fed maintained the target federal funds rate at 5.25%-5.5%.
During the news conference, the Fed chair also hinted that elevated inflation and an expanding economy were concerns and that the committee awaited persistent signs of tighter financial conditions. He also noted other risks such as the Middle East crisis and the chance of a government shutdown.
Stocks climbed as Powell answered questions. Investors came away thinking another rate hike is doubtful.
The S&P 500 rose 1.1% while the Nasdaq rose 1.7% in the stock market today.
Volume on the NYSE and on the Nasdaq rose from Tuesday's totals, according to unconfirmed data.
Small caps reversed late and lifted the Russell 2000 by 0.3%. The Innovator IBD 50 shone with a 1.6% gain.
Crude oil fell slightly to $80.79 a barrel.
The yield on the benchmark 10-year Treasury note fell 8 basis points to 4.78% in a busy day for the bond market.
Multiple economic reports crowded Wednesday's calendar besides the Fed meeting. ADP's payroll report showed 113,000 jobs were added in October, below consensus of 145,000, according to Econoday. Meanwhile the Labor Department's JOLTS report showed 9.553 million job openings in September, above consensus of 9.375 million. But August's results were revised down to 9.497 million.
Dow Jones Stocks
Apple rose almost 2% and continued to hold the 200-day moving average. Earnings are due Thursday after market close.
Caterpillar reversed course and gained 2.5% after selling off on its earnings report Tuesday.
Other tech leaders rose in the Dow. Microsoft is topping a handle entry of 346.20 and is the latest addition to IBD Leaderboard. Intel rose for a fourth straight day. The relative strength line was at a new high.
Stocks Moving Today
Advanced Micro Devices rose after both sales and earnings beat consensus estimates. Though the sales outlook for the fourth quarter missed expectations, AMD expects $2 billion in 2024 sales from its new AI chip, set to launch in December.
Paycom Software plunged 38.5% after sales missed views. The software giant also gave a dim sales growth outlook of 10%-12%, half the consensus Street estimate, for the year.
In solar, First Solar was up less than 0.2% in volatile trading Wednesday after its earnings report. Sales rose 27% while earnings surged to $2.50 per share and reversed a loss in the prior year quarter. The maker of solar modules maintained its full year sales views and raised its midpoint EPS guidance for 2023 to $7.55 per share.
Outside the Dow Jones, security software provider Parsons, also an IBD 50 stock, shot past a buy zone after Q3 earnings. Revenue rose 25% while earnings grew 44%. The company also raised its revenue estimates for the full year. Also on the IBD 50, Wingstop rebounded off its converged 50- and 200-day lines after results were announced.
Warren Buffett-backed EV maker BYD posted monthly sales that topped 300,000 for the first time. BYDDF gave up its early gains and closed 1.2% lower.
BYD rival Tesla climbed 2.4% but remained below the 200-day line.
Six Flags Entertainment rose over 5% on news of a potential merger with Cedar Fair. FUN rose 5.7% and retook the 50-day line before closing just below it.
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