Dow Storms Past 23,000 On IBM Outlook, As This Chipmaker Spikes | Stock News & Stock Market Analysis

Investors piled into IBM (IBM),Cree (CREE) and a handful of other names on Wednesday, ignoring a weak reading on September housing data and driving the session to starkly uneven gains.

XAutoplay: On | OffThe Dow broke out of its recent trend of small step advances, jumping 0.7% in its biggest move since Sept. 11. That was enough to easily hurdle the 23,000 mark as IBM soared nearly 10% on a turnaround earnings report. Goldman Sachs (GS) also had its shoulder to the wheel, with Intel (INTC) and Travelers (TRV) also posting gains of better than 1%.

The Nasdaq and S&P 500 held to the recent trend, each ending a fraction above their breakeven lines. That was enough for a new closing high on the S&P 500, while the Nasdaq managed to chalk off another fresh intraday high.

IBM, Cree, Jupai Soar; Goldman, Lam Research Earn Honorable Mention

IBM was the story of the day, vaulting 9.7% to its best session since January 2009.  Analysts immediately begin ratcheting price targets higher after the company reported better-than-forecast earnings and revenue in its third quarter, and guided fourth-quarter expectations toward its first revenue gain in at least four years.

The gain hoisted shares back above the stock’s 40-week moving average and left them 12% below the stock’s February high.

Goldman rose 2.6%, recovering the ground lost on Tuesday following its earnings report.  The stock remains below a 247.17 buy point in a cup-with-handle base.

Chevron (CVX) notched the Dow’s biggest decline, dropping 1.8% as details emerged on another fire damaging teh company’s El Segundo refinery in Southern California. Brokerages BMO Capital and Societe Generale downgraded the stock, while Morgan Stanley maintained its overweight rating.

Shares of Cree snapped 17% higher after the chipmaker and LED lighting leader turned in a just-enough fiscal first quarter performance last Tuesday, including weak guidance. But new chief executive Gregg Lowe’s discussion of turnaround plans with analysts during the conference call sparked a rally that sent shares past a 29.94 buy point in a cup-with-handle base formed deep within a multi-year correction.

On the IBD 50 list, China’s Jupai Holdings (JP) remained unstoppable, soaring more than 6% and giving it a 154% gain following an August breakout.

Another China-based name, Autohome (ATHM), hammered out a 4% gain after Credit Suisse initiated coverage on teh stock with an outperform rating and a 70.80 price target. The stock is attempting to start up the right side of a two-month consolidation.

Lam Research (LRCX) was another winner among IBD plays, climbing nearly 3% after reporting a broad fiscal first-quarter earnings bet and raising its Q2 earnings outlook above consensus targets. Shares were extended going into the session, and ended the day up 17% from a flat base buy point of 170.10.


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Originally posted 2017-10-18 22:19:15.


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