The major stock market indexes managed to maintain afternoon gains with a bounce in the final hour of trading. The Dow Jones Industrial Average was up 1.1% and over 300 points, and held above its 21-day exponential moving average.
The S&P 500 also added 1.1%, while the Russell 2000 small-cap index held was in line, up 1.2%, also above its 21-day line. The Nasdaq composite added 0.9% and finding resistance at its 21-day line. The Nasdaq climbed nearly 3% in early trading today as indexes closed well off session highs.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF added 0.8%.
The NYSE and the Nasdaq posted higher volume than at the same time on Monday.
Crude oil shed 2.5% to $82.46 per barrel on recession fears. Yet, the SPDR Select Energy ETF rose 0.9%. The 10-year Treasury note yield dipped to 3.99%, down two basis points. Bitcoin pulled back 1.4% to $19,245.
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September month-over-month industrial production increased 0.4% vs. the consensus expectation of 0.1%. Manufacturing output edged up 0.4% vs. the 0.2% projected. The capacity utilization rate was 80.3% vs. the 80.0% expected.
The October Housing Market Index came in at 38 vs. the 44 consensus estimate. The lower number marks the 10th consecutive decline. A number below 50 shows negative sentiment by builders for present and future sales and buyer traffic in the next six months.
Stock Market: Defense, Financials Pop On Earnings
Lockheed Martin was up about 8.8% in heavy volume after reporting a better than expected Q3 EPS number.
Dow Jones component Goldman Sachs was up 2.3% after reporting a beat on Q3 sales and EPS. Its $8.25 EPS is the first quarterly increase after three decelerating quarters. The company confirmed a reorganization plan to break its business into three segments: Asset & Wealth Management, Global Banking & Markets and Platform Solutions.
GS shares rose above the 21-day exponential moving average. The company has a suboptimal 61 Relative Strength Rating and a low 55 Composite Rating. It pays a 3.3% annualized dividend yield to shareholders.
Stock Market Movers: Crypto-Related Bank Tanks, Drug Stock Is S&P Loser
Cryptocurrency-focused financial services group Silvergate plummeted 22.7% after missing Q3 EPS and sales numbers. The company cited Q3 customer withdrawals higher than expected, as cryptocurrencies fell out of favor.
Moderna lost 3.7%, and was the S&P worst performer after Morgan Stanley cut its price target to 175, but maintained its equal weight rating.
Oncology-focused biotech Aveo Pharmaceuticals soared over 42% on news it agreed to be acquired by South Korea's LG Chem for $15 a share in cash. The stock has traded mostly below 10 a share since 2019. Aveo is in the highly-ranked Medical-Biomed/Biotech industry group. The group holds the fifth spot of the 197 IBD groups.
Target gained 5.5% after a Jefferies analyst upgraded its rating to buy from hold, with a higher 185 price target.
Manufacturer, Coal Stocks Hit Buy Points
Contract manufacturer Sanmina was up 2.3% and broke out of a cup base after hitting the 52.24 buy point. It is in the 5% buy zone on the MarketSmith chart, although market risk remains high. Its relative strength line hit a new high on the weekly chart as indicated by the blue dot on the MarketSmith chart. Sanmina was featured in Wednesday's IBD 50 Screen of the Day.
Eastern Bankshares rose above a 21.55 buy point, up 0.1%. Its relative strength line hit a new high on the weekly chart. The company has had accelerating quarterly sales growth in the last three quarters. Analysts project 46% annual EPS growth in 2022 and 26% in 2023.
Coal miner Consol Energy broke out of a cup-with handle base hitting the 73.20 buy point, but has given back earlier gains, down 1.3%. Consol's relative strength line hit a new high on the weekly chart.
Property and casualty insurance provider Kinsale rose 1.6% and is trying to break out of a cup base with a 285.36 buy point. Its relative strength line hit a new high on the weekly chart. Kinsale holds a best-possible 99 EPS Rating, a 99 Composite Rating and a 97 Relative Strength Rating. Kinsale was a featured in IBD Stock Analysis earlier in the month.
IBD 50: Defense IT Stock Breaks Out; Health Care Stocks Lead
The Innovator IBD 50 ETF gained 1.2%, in line with the major stock market indexes.
Defense IT stock Booz Allen Hamilton was up 4.6% and broke out of a flat base in heavy volume, hitting the 99.41 buy point. The company is third in the consulting services group, which is ranked 18th.
Medical staffing provider Cross Country Healthcare gained 4.8% and extended from the 20%-25% profit zone of a 27.87 buy point. The company holds a 99 EPS Rating and 98 Composite and Relative Strength Ratings.
Darling Ingredients dropped 3.9% after announcing a deal to buy collagen producer Gelnex for $1.2 billion in cash. Darling is still forming a base.
