The Dow Jones Industrial Average rebounded in today’s stock market and led the major equity indexes on the upside. Small caps did even better. The Nasdaq and S&P 500 also held decent gains.
Stock Market Today
The Nasdaq composite rose 0.8%. The Dow Jones traded up more than 1%, while the S&P 500 gained over 0.8%. The Russell 2000 index advanced 1.8%. Data showed lower volume on the NYSE and higher volume on the Nasdaq vs. the same time on Tuesday.
Stocks cooled slightly from their intraday highs after the Federal Reserve’s meeting announcement at 2 p.m. ET. The Fed signaled it could hike rates six to seven times by the end of 2024. This shows the central bank’s optimism over the future of the pandemic recovery, as well as the Fed’s plan to possibly tighten its easy money policies in a few years.
The Federal Open Market Committee still held interest rates at near-zero in its updated statement. However, it noted progress in its discussions on paring back the asset purchase program.
Growth stocks continued their strong rebound on Wednesday. The Innovator IBD 50 ETF (FFTY) gained 1.4% after Tuesday’s 0.5% rise amid weakness in other sectors on Wall Street. Shares are now back above a 50.06 buy point in a long consolidation pattern.
Shares of IBD 50 stock and auto retailer AutoNation (AN) broke out from a 125.21 buy point of a cup base.
Shares rose over 4% and maintain a strong RS Rating of 95 and a perfect 99 Composite Rating. AutoNation, which was IBD’s Stock Of The Day on Tuesday, owns and operates over 300 dealerships across the U.S. as of June 30. It sells and leases new and used cars as well as auto products.
U.S. Stock Market Today Overview
Last Update: 3:02 PM ET 9/22/2021
Dow Jones Today
Inside the Dow Jones, bank and oil stocks were among top gainers.
Additionally, Boeing (BA) rallied nearly 4%. The airplane maker released its outlook for the European aviation market, signaling 3.1% growth for annual air passenger traffic in Europe through 2040. The report also estimates that European airlines will acquire at least 8,705 new jets worth roughly $1.5 trillion over the next 20 years.
Shares remain stuck below the 50-day and 200-day lines and the stock is still not near a proper buy point.
Elsewhere, Chevron (CVX) raced 3.4% higher. The stock is also trading below its 50-day and 200-day lines. Oil stocks got a boost as light sweet crude prices rose over 2% to $72 a barrel.
Meanwhile, Nike (NKE) also traded higher with a rise of roughly 1.2%. Shares are trading near the lower edge of a new flat base with a 174.48 buy point and are 12% below this proper entry. The stock also dropped below its key 50-day and 200-day lines in August, a bearish sign.
Nike plans to release its fiscal first-quarter 2022 results on Thursday. According to IBD data, the athletic shoe and apparel giant is expected to show year-over-year earnings growth of 18% to $1.12 per share. Sales are seen rising 18% to $12.46 billion.
Stocks Breaking Out
Both stocks got analyzed in Wednesday’s IBD Live show.
Boot Barn broke out into a buy zone after passing a stage-three flat base with a buy point of 93.35. The relative strength line was bending upward, a good sign. The cowboy boot retailer traded inside the buy area after rising over 3.4%. The firm maintains excellent IBD Ratings, with perfect EPS and Composite Ratings of 99 alongside a stellar 97 RS Rating.
Semtech also broke out above a 79.54 cup-with-handle entry. Shares rose 3.2% in early afternoon trading and remain inside the buy area.
With the market uptrend under pressure, however, it’s risky to buy any stocks.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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