The Dow Jones Industrial Average powered higher as yields plunged. A Cathie Wood buy surged as Biogen (BIIB) exploded higher. Coinbase (COIN) and Riot Blockchain (RIOT) jumped as Bitcoin rose. Apple (AAPL) dived on iPhone 14 demand worries.
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Meanwhile, some noteworthy leaders made bullish moves. Vertex Pharmaceuticals (VRTX) and Cardinal Health (CAH) passed aggressive buy points, while Eli Lilly (LLY) attempted a breakout.
Volume was mixed, rising on the Nasdaq but dipping on the New York Stock Exchange according to early data.
The yield on the benchmark 10-year Treasury note plunged 24 basis points to 3.73%. West Texas Intermediate crude oil rose 4.5% to trade at just over $82 per barrel.
Bank Of England Move Slaps Yields Lower
U.S. stocks rebounded off 2022 lows after the Bank of England stepped in amid the ongoing fallout from the latest British government spending plans.
It announced a 65-billion-pound bond-buying program that aims to calm the crisis, which has gripped government debt markets. It also postponed the start of its bond-selling program to tighten financial conditions in the country.
The pound moved higher vs. the dollar. It had plunged to a record low after the U.K. government unveiled a program of stimulative tax cuts.
“U.S. stocks are rallying after the BOE’s intervention tentatively halted the bond market sell-off,” Oanda senior market analyst Edward Moya said in a note to clients. “Some traders are growing confident that we are close to seeing the end of the Fed’s tightening cycle, but that is still too early to say.”
Nasdaq Jumps, Small Caps Soar
The Nasdaq fared best out of the major indexes as it powered 2.1% higher. The S&P 500 was not far behind with a 2% gain, snapping a six-session losing streak in the process.
The S&P 500 sectors were all positive, with energy and communication services the best performers. Technology made the slimmest gain.
Small caps gave the bears a black eye, with the Russell 2000 soaring 3.6%.
The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, fared even better as it gained 3.7%.
Dow Jones Today: Index Pops As Apple Stock Drops
The Dow Jones Industrial Average closed up 549 points as it snapped a six-session losing streak of its own. This translates to a 1.9% gain.
Apple stock stood out for all the wrong reasons: It was the only Dow loser on a day when the index was awash with green ink. It finished well off session lows but still gave up 1.3%.
Apple took a dive on increasing worries over iPhone 14 demand. A Bloomberg report stated that the firm will no longer try to increase output by 6 million units in the second half of 2022. Instead it will aim to produce 90 million units, the same as the prior year.
AAPL stock also lost ground on an aggressive trendline entry and a handle entry of 176.25.
Home Depot (HD) and Boeing (BA) fared best on the Dow Jones today, rising 5% and 4.7% respectively.
New Cathie Wood Buy Rockets Amid This
A new acquisition by ARK Invest portfolio manager Cathie Wood paid off immediately as the stock sprinted higher.
Ginkgo Bioworks (DNA) made an eye-catching move as it surged 19.7%. But the stock is valued too low to meet CAN SLIM standards. Investors should aim to buy stocks trading for more than 10 a share.
The famed investor’s ARK Innovation ETF (ARKK) snapped up 106,000 shares on Tuesday, bringing the fund’s total holding of the stock up to 81,392,155.
DNA stock surged past its 50-day line but remains shy of the declining 200-day moving average.
Biotech stocks in general were doing well, with the iShares Biotech (IBB) ETF closing the session up 3.9%.
One reason they were gaining was the exceptional performance of Biogen. BIIB stock rose 39.9% Wednesday on positive results from a study of its experimental Alzheimer’s drug, lecanemab. The stock was given a slew of analyst upgrades as a result.
Coinbase Stock, RIOT Surge As Bitcoin Falls
Coinbase was surging as riskier stocks climbed. It was finished the day up 6.8%, though lower volume was a flaw.
The crypto trading platform, which slashed its full-year forecast last month, remains rooted below its moving averages after a spell of prolonged pressure. COIN shares are down more than 73% since the start of 2022.
COIN stock was given a boost as Bitcoin rallied. The most famous cryptocurrency is closing in on the $20,000 mark after popping 2.4%.
Other digital currency plays also jumped. The Grayscale Bitcoin Trust (GBTC) rose 2.7%; Bitcoin mining play Riot Blockchain soared 7.5%.
Outside Dow Jones: These 3 Stocks Test Entries
Making new buys is still risky, but a trio of stocks impressed amid Wednesday’s bullish action.
Vertex Pharmaceuticals cleared a trendline entry near 292. It has also bullishly reclaimed its 50-day moving average. It is continuing to form a flat base with a buy point of 306.05, according to MarketSmith analysis.
The Boston-based biotech specializes in treatments for cystic fibrosis and has a perfect EPS Rating of 99. It finished the day up 2.7%.
Cardinal Health is also actionable as it rebounds off its 10-week moving average. It rose 4.6%. The generic-drug maker is in the top 4% of stocks in terms of price performance over the past 12 months.
Both names have just been added to the IBD Leaderboard list of top stocks.
Eli Lilly, which is also working on an Alzheimer’s treatment, attempted a breakout. The stock’s relative strength line is at a new high, but shares have slipped back under a flat-base entry of 335.43. LLY rose 7.5% in massive volume. It also has a good Accumulation-Distribution Rating of B-.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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