Nasdaq Leads, Small Caps Lag; Adobe Systems Finds Support As Earnings Loom | Stock News & Stock Market Analysis

The Nasdaq composite outperformed with a modest gain in late-afternoon trading Wednesday, while small caps lagged again.

Money flowed into bonds Wednesday, sending the 10-year Treasury yield lower by 3 basis points to 2.32%. Meanwhile, U.S. crude oil futures settled at $55.96 a barrel, down 2.9%, after the U.S. Energy Information Administration reported that crude supplies fell 5.6 million barrels last week, more than expected. Oil was also hurt by a larger-than-expected rise in gasoline inventories.

X Oil and gas names lagged, while solar, steel and tobacco stocks outperformed.

The Nasdaq was up 0.3%, while the Dow Jones industrial average and S&P 500 showed gains of around 0.1%. The Russell 2000 small-cap index eased 0.3% to 1,512. It’s getting close to the 50-day moving average around 1,502. Volume on the NYSE and Nasdaq was tracking slightly lower than Tuesday’s levels at the same time of day.

In economic news, the IBD/TIPP Economic Optimism Index dipped in December but marked its 15th straight reading in optimistic territory.

Separately, the ADP report showed private payrolls rising by 190,000 in November, mostly in line with expectations. November nonfarm payrolls, announced Friday, are expected to increase by 190,000.

In the stock market today, RH (RH) reversed higher after a soft open that saw shares trade down to 95.50. Quarterly profit surged 420% from a year ago, in line with expectations. Sales rose 8% to $592.5 million, the second straight quarter of decelerating growth. RH was trading around 107.43, up more than 3%, after touching an all-time high.

Facebook (FB) gained nearly 2% to 176, fueled by positive comments from Evercore ISI, which set a price target of 225.

Adobe Systems (ADBE), meanwhile, is finding support at the 50-day moving average ahead of its Dec. 14 earnings report. Shares jumped 3%. Support comes after a breakout over a 157.99 buy point.

China names in the IBD 50 snapped back after recent selling, with names like TAL Education (TAL), New Oriental Education (EDU), China Lodging (HTHT) and Alibaba (BABA) showing gains of 2% or more.


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Originally posted 2017-12-10 11:04:36.


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