Wall Street looked past a move by the White House to force a China consulate in Houston to get packing as blue chips paced a decent yet modest gain in stocks today.
While the Dow Jones Industrial Average finished up 0.6% to top the 27,000 level, the Nasdaq cut its early mild losses to close ahead 0.2%. This mild action followed a new distribution day for the Nasdaq composite on Tuesday, when it fell 0.8% after hitting a new all-time high of 10,839. (Please see more details on key daily analysis of the market in the Big Picture column.)
The S&P 500 virtually matched the Dow industrials’ 0.6% rise. Innovator IBD 50 (FFTY) charged 1.1% higher. Volume fell on both the Nasdaq and NYSE exchanges, early data showed.
At 36.64, the growth stock-focused exchange traded fund now stands 6.4% higher for the third quarter; the 500, at 3276, has risen 5.7% over the same time frame.
Following Behind The Dow Jones, But Not Out
Notice on a daily chart how Vertex remains on the north side of its 50-day moving average, a bullish sign. However, the leader in cystic fibrosis treatments has made piecemeal progress since clearing a 295.65 buy point in a flat base.
IBD Live on Wednesday discussed the action in Vertex as well as emerging leaders in the construction, retail and semiconductor sectors, which have shown signs of healthy sector rotation.
Also, please see this recent Sector Leaders column on Vertex and how it plans to fuel future growth in its top and bottom lines.
VRTX ranks No. 7 in IBD Big Cap 20.
Earnings Movers And New Breakouts
Iqvia (IQV) posted a fourth straight advance, rising nearly 5%. Volume raced more than 40% above its 50-day moving average.
The 5% buy zone goes up to 164.14.
Iqvia provides biopharmaceutical development services. The Durham, N.C., firm said Q2 earnings fell 23% to $1.18 a share but that beat views by 11%. Revenue dropped 8% to $2.52 billion. The stock’s relative strength line lurched into new high ground, a good sign for the new breakout.
Railroad firms also grabbed the spotlight.
Canadian Pacific (CP) stretched as much as 3.5% higher before giving back most of that gain. Still, the large cap ($37 billion market value, 136 million shares outstanding) is holding above a 271.73 buy point in a new base.
CSX (CSX), due to report Q2 results after the close, rose more than 1.1% in slightly above-average turnover. The stock has been building a shallow cup within a larger pattern. For now, 77.01 poses as a potential entry.
Analysts surveyed by FactSet see earnings down 41% to 64 cents a share in the quarter vs. a year ago.
After the close, the Jacksonville, Fla., firm reported a 40% drop in earnings to 65 cents a share. Revenue fell 26% to $2.26 billion. The company reduced expenses by 19%. As a result, operating income fell 37%. The operating ratio improved 590 basis points to 63.3%.
Diluted shares outstanding sank 5% to 767 million.
Software Stock Leader, Small Cap
Elsewhere, AudioCodes (AUDC) stood out among companies marking new 52-week or all-time highs.
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