X The bulls had their day in the sun again Thursday as the focus remained on earnings reports as well as comments from Treasury Secretary Steven Mnuchin, who said a Trump tax plan is close.
Outperformers in the Dow Jones industrial average included American Express (AXP) and Caterpillar (CAT). American Express gapped above its 50-day moving average, rising 6%, on an earnings beat. Shares of Caterpillar rose 2%. The maker of construction and mining equipment is trading near its 50-day moving average as it works on a new base.
At the close, the Dow and Nasdaq composite rose 0.9%, and the S&P 500 added 0.8%. Small caps outperformed with the Russell 2000 up 1.2%. Preliminary data showed volume on the NYSE coming in slightly higher than Wednesday. Volume on the Nasdaq fell slightly.
Advancing stocks trounced decliners on the Nasdaq about 3-1. The ratio was slightly lower on the NYSE.
Apple (AAPL) also did well in the Dow, rising around 1.5%, after Stifel raised its iPhone 8 sales estimates. Earnings are due May 2 after the close. Apple is finding support at its 10-week moving average for the first time after a breakout over a 118.12 buy point in January.
In the stock market today, Wall Street definitely liked the look of earnings reports from CSX Corp. (CSX), Steel Dynamics (STLD) and Nucor (NUE).
Shares of CSX soared 6% to 49.58 after earnings and sales handily beat estimates. The company also raised its dividend by 11% to 20 cents per share and said it would buy back up to $1 billion in stock. Despite the powerful gap up in price, CSX is still trying to clear base with a 50.41 buy point.
Steel Dynamics and Nucor rose 7% and 5%, respectively, as both steel producers reported another quarter of accelerating sales growth despite persistent worries about slowing demand from China. Steel stocks also benefited after President Trump met with steel executives and announced a probe of steel imports.
Homebuilders had a tough day despite strong results from D.R. Horton (DHI) before the open. The stock reversed lower, but managed to hold above the 50-day moving average, as shares lost 2.5%. IBD's homebuilder group slumped around 4%.
Inside the IBD 50, LogMeIn (LOGM) is working on a cup-shaped base with a 100.10 buy point. Shares jumped around 3% to 107.60. Earnings are due May 4 after the close.
At the New York Mercantile Exchange, benchmark crude oil for May delivery eased 17 cents, or 0.3%, to settle at $50.27. The 10-year Treasury yield was recently trading around 2.24%, up 2 basis points.
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