Indexes were near session highs at midday Wednesday as Treasury yields slid. A rally in biotechs contributed to the market's vigor.
The S&P 500, Dow Jones Industrial Average and Nasdaq each climbed 0.9%. Small caps outperformed as the Russell 2000 rallied 2.4%.
The S&P is testing its June lows, so investors should watch for a market bounce. Volume rose on the Nasdaq and NYSE compared with the same time on Tuesday.
The yield on the benchmark 10-year Treasury yield topped the 4% mark earlier today but backed off after the Bank of England stepped in to shore up U.K. government debt. The U.S. yield slid to 3.78% at midday. The most commonly quoted yield had been surging on expectations of an even higher Fed funds rate.
Apple sold off more than 3%, sinking to the lowest level since July 14.
Bloomberg reported the company is rolling back plans to boost production of its new iPhone 14 model, after an expected burst of demand failed to materialize. Apple said previously it planned to boost production by as much as 6 million units.
Biotechs Rare Bright Spot
Biotechs rallied in Wednesday's stock market after Crispr Therapeutics said it will seek Food and Drug Administration approval for what could be the first treatment that uses CRISPR gene-editing technology.
CRSP stock jumped 2.6% but is testing resistance at the 200-day moving average.
IBD 50 member Vertex Pharmaceuticals, which is partnering with Crispr Therapeutics, rose more than 2%. It is forming a flat base with a 306.05 buy point.
In another bit of good industry news, Biogen skyrocketed 35% after its experimental Alzheimer's drug, made in partnership with Japan's Eisai, showed promising results. Eisai shares soared 60% to a record high.
Biogen shares are at their highest since November and on pace for the best daily performance since Nov. 4, 2020, when it rose nearly 44%, according to Dow Jones Market Data.
Eli Lilly, which is working on an Alzheimer's drug similar to Biogen's, shot up 9% and broke out of a flat base with a 335.43 buy point. But the stock market remains in poor shape, so any stock purchase is extra risky right now.
The iShares Biotech ETF jumped 3.5% at midday as it tries to break from a slump. The ETF has been trending lower after meeting resistance around its 200-day moving average in August and this month.
IBD 50 Index Outperforms Stock Market
The Innovator IBD 50 ETF climbed nearly 2% in a broad advance for the index.
Refinery and gas station operator HF Sinclair rose 4% and continues to form a cup-with-handle base with a 56.40 entry. Hess also rose more than 4% and is trying to regain the 200-day line. Occidental Petroleum's 3.2% midday rise is not nearly enough to get it back to its 50-day moving average.
Sanmina rose 3.5% and appears to be finding support around 45, where the stock broke out on July 28. The contract manufacturing company erased a 14% gain from the entry, triggering a sell signal.
In economic news, pending home sales fell 0.2% in August. Economists expected a 0.8% decline.
