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Dow Retakes 26K Level As Volume Softens; Bitcoin Slammed While Apple Rallies | Stock News & Stock Market Analysis

The stock market recovered nicely Wednesday in tepid volume after a bearish session Tuesday that saw major stock indexes reverse in higher volume.

Tuesday’s weakness amounted to a distribution day for the Nasdaq and S&P 500, but solid gains Wednesday showed the bulls aren’t ready to give up the fight yet.

X At the close, the Dow Jones industrial average jumped 1.2%, the Nasdaq composite added 1% and the S&P 500 rallied 0.9%. Preliminary data showed volume on the NYSE and Nasdaq coming in lower than Tuesday’s levels, a bit disappointing for a bull camp that would’ve preferred to see the gains come in higher volume.

Apple (AAPL) did well in the Dow, rising nearly 2%  to 179.10, after the company announce plans repatriate billions in cash held overseas, contributing $350 billion to the U.S. economy over the next five years. Apple continues to hold support at the 50-day moving average although a breakout over a 176.34 buy point has been slow to take shape.

Bitcoin pierced below the $10,000 level and came close to $9,000 before recovering a bit. The digital currency has been on a downtrend for most of January. After a lukewarm test of the 50-day moving average Tuesday, Bitcoin Investment Trust (GBTC) gave up  the support level Wednesday, falling nearly 7% to 1,619.

The IBD 50 turned in another stellar performance, with nearly 20 names in the index up 2% or more. IBD 50 component Coherent (COHR) shot up 5% to 321.91, good enough for a breakout over a 320.83 buy point. After rising 35% in 2017, the IBD 50 is up 6.1% year-to-date through Tuesday, above the S&P 500’s 3.8% gain.

Strong earnings from ASML Holding (ASML) and bullish guidance from Ichor (ICHR) fueled another rally in chip-equipment names, one day after positive analyst chatter fueled a 0.9% gain for the group Tuesday and a 3% gain Wednesday. Shares of ASML jumped nearly 7% to 199.18 after a solid showing Tuesday that saw shares jump 3%. It has quickly become extended from a 186.47 entry.

Small-cap Ichor, meanwhile, gapped above the 50-day moving average, soaring 20%, after preannouncing strong preliminary Q4 results and offering up a bullish outlook for Q1. It’s still 15% off its high.

Meanwhile, financials were in the spotlight again on earnings, including two online brokers. Interactive Brokers (IBKR) reversed higher after a soft start, rising 0.3% to 62.61. The stock continues to hold near highs after rising more than 60% in 2017. Charles Schwab (SCHW), another strong price performer, extended its winning streak to 11 sessions, rising 1% to 56.10. It’s extended in price now, or too late to buy, after a recent breakout from a flat base with a 46.31 buy point.

Goldman Sachs (GS) paid a visit to the 50-day moving average, falling 2% to 253.38. It’s still holding above a prior buy point of 247.17, although big sellers were in the stock Wednesday despite an earnings beat. Bank of America (BAC) recovered for a close near its intraday high, but shares still lost 0.2% to 31.18.

U.S. crude oil futures edged higher to $63.88 a barrel, while the 10-year Treasury yield added 3 basis points to 2.57%.

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