The stock market gained after the Fed released minutes from its policy meeting earlier this month, indicating the Fed saw a greater urgency for tighter monetary policy over the next couple months.
The Nasdaq gained 1.4%. The S&P 500 was up 1%. The Dow Jones Industrial Average gained 0.5%. The small-cap Russell 2000 gained 1.6%.
Wednesday marks the 100th trading day of 2022 for the stock market. The Dow Jones Industrial Average and the S&P 500 are on pace for their worst 100 first days since 1970, according to Dow Jones Market Data. For the Nasdaq composite, which dates back to 1972, it could be the worst first 100 trading days ever.
Volume fell on the Nasdaq and the NYSE compared with the same time on Tuesday.
In the minutes to the policy meeting earlier this month, Federal Reserve officials thought they would need to raise interest rates by a half percentage point at each of their next two meetings.
"At present, participants judged that it was important to move expeditiously to a more neutral monetary policy stance. They also noted that a restrictive stance of policy may well become appropriate," the minutes said.
Market Still Needs This; Twitter Pops Late On Musk Move, Nvidia Falls
Economic News Not Enough To Buoy The Stock Market
Earlier today, the April durable goods orders report said orders rose 0.4%, and 0.3% excluding transportation, modestly below the Econoday consensus estimates. Core capital goods orders rose 0.3%, also a bit below views.
The yield on the benchmark 10-year Treasury note was nearly unchanged at 2.76%.
Financial software maker Intuit jumped 9% after the company reported earnings late Tuesday that barely beat analysts' forecasts for earnings and sales.
Early Wednesday, residential homebuilder Toll Brothers beat analysts' earnings and sales estimates. Toll Brothers reported earnings of $1.85 a share on sales of $2.3 billion. Analysts had expected earnings of $1.63 a share on sales of $2.1 billion. Shares gained 7% on the news.
On Tuesday, Toll Brothers dropped 5% along with other homebuilders after a Census Bureau report said sales of new single-family houses in April 2022 dropped 16.6% from March.
The Consumer Discretionary Select Sector ETF led S&P sectors Wednesday, gaining 2.8%. Tesla led the charge, gaining 5%. Twitter is scheduled to meet with shareholders today on Tesla CEO Elon Musk's buyout offer. Twitter gained more than 3%.
Earnings Reports Are Mostly Positive
Chip equipment maker Photronics jumped 18% Wednesday after it easily beat earnings and sales estimates for its fiscal second quarter of 2022. The shares advanced past its 50-day and 200-day moving averages.
Star Bulk Carriers reported first-quarter results after the close on Tuesday that beat expectations, helped by demand for harder-to-get basic materials. But shares dipped 2.5% anyway. Star Bulk said demand was "still robust with continued strong commodity flows over longer distances due to infrastructure investments and trade dislocations."
Dick's Sporting Goods rebounded from an earlier loss of 12% to a gain of 9% by late afternoon. The retailer slashed its full-year profit forecast. CEO Lauren Hobart said the company is confident about facing "uncertain macroeconomic conditions." Dick's expects earnings of $7.95 to $10.15 a share in the fiscal year ending next January. That's well below the $12.57 consensus FactSet estimate.
The stock had tumbled to the lowest price since February 2021, but could finally be bottoming.
Nordstrom rose 11% following its earnings report late Tuesday. The upscale department store gave a mixed April-quarter report and raised its full-year guidance.
Innovator IBD 50 ETF rose 2.4%. Comstock Resources led the IBD 50 with a 8% gain as the oil and gas producer aims for new highs.
Follow Michael Molinski on Twitter @IMmolinski
