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S&P 500, Dow Notch All-Time Highs; Dave & Buster's Soars 19%

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The stock market extended its gains into the close Wednesday. In the stock market today, the S&P 500 and Dow Jones industrial average blasted into new highs, up 1.2% and 1.4%, respectively, while the Nasdaq was up 1%. Tuesday's top performer, the Russell 2000, followed up with a 0.9% gain.

Volume was higher across the board.

Starbucks (SBUX) rose about 2% after departing CEO Howard Schultz outlined his vision for the coffee company over the next five years. In response to slowing sales, Schultz proposed 20 to 30 Roastery locations around the world, a series of Reserve stores, and more of a retail footprint for the "Reserve Bar." Starbucks Reserve is the company's new high-end retail location that serves and sells exotic coffees.

On the downside, biotechs and miners fell in heavy volume. IBD 50 stock Celgene (CELG) fell further under its 118 cup buy point following President-elect Donald Trump's comments that drug prices were too expensive and that he would like to lower their costs. Freeport-McMoRan (FCX), a Leaderboard member, fell 3% but still remains 12% above its 13.69 cup-base entry point.


IBD'S TAKE: Apple and big internet stocks rallied on Wednesday, but most have been market laggards since the presidential election. Are Apple and FANG stocks ready to join the Trump rally?


Among other leading growth stocks, Arista Networks (ANET) rose 4% as the stock continued to gain momentum from its flat-base breakout. The stock is now up 12% from its 87.72 pivot.

Dave & Buster's Soars, HealthEquity Rebounds

Dave & Buster's (PLAY) gapped up 19% following Tuesday's quarterly earnings release. In addition to surpassing both top- and bottom-line estimates, the company raised its full-year guidance, prompting analysts to raise their price targets for the company. The stock initially broke out of a double-bottom base in mid-November.

HealthEquity (HQY) initially fell 4% Wednesday morning before rebounding to positive territory after the Q3 earnings announcement after the close Tuesday. Both earnings and sales exceeded analyst expectations. Shares were up 2% at the close.

Oil Doubts Remain, U.S. Dollar Falls

Crude prices continued to decline Wednesday, falling 2% following bearish oil inventory data. Doubts persist that production cuts by OPEC and Russia would be sufficient to end the supply overhang. The U.S. dollar fell 0.3% after Tuesday's rebound.

Looking Ahead

Two notable earnings reports are out after the close today: Broadcom (AVGO)  and Finisar (FNSR). Broadcom, a chip designer, has struggled to gain traction in the current market and its Relative Price Strength Rating has suffered, resulting in a mediocre rating of 51. Estimates are for $3.38 earnings per share on revenues of $4.12 billion.

Finisar, a fiber-optic company, has been holding above its most recent flat-base entry point at 31.52. Analysts expect EPS of 46 cents on $362 million in sales.

The European Central Bank is set to to meet Thursday. Investors expect the ECB to extend its EUR80 billion monthly bond-buying program.

On the data front, weekly jobless claims are due out at 8:30 am ET. The new consensus estimate is 255,000.

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