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Dow Jones Rises, Hits New High After Fed Chairman Powell’s Comments; This Chip Stock Breaks Out

The Dow Jones Industrial Average traded higher in today’s stock market as the blue chip index led the major indexes on the upside. Over the past hour of trading, the major indexes continued trading near their highs of the day. Meanwhile, the Dow hit a new all-time high.




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Stock Market Today

At the close of the day, the small-cap Russell 2000 index was up 2.4%. Meanwhile, the Dow Jones closed up 1.35%, after hitting a new high of 32,009.64. The S&P 500 rose 1.1% while the Nasdaq composite advanced 1%. Volume was lower on the Nasdaq and on the NYSE compared with the close on Tuesday, according to preliminary data.

For the second day in a row, Federal Reserve Chairman Jerome Powell spoke on his intention to maintain interest rates and an easy money policy to help stabilize the economy in the wake of the coronavirus pandemic. Stocks again opened lower before reversing to close higher.

All the sectors of the S&P were having a strong day. Energy and industrials were among the best performers on Wednesday.

The Innovator IBD 50 ETF (FFTY) gained 0.9%, recovering some of its losses from the day prior. The growth-focused index was hit hard on Tuesday as growth stocks took a hit in favor of less risky assets. Stocks leading the upside in the growth-focused ETF were MaxLinear (MXL) and MarineMax (HZO), with gains of over 7% a piece.

Dow Jones Today

The Dow Jones held a solid gain, as Boeing (BA) and Chevron (CVX) led the upside with respective gains of 8.1% and 3.7%.

Shares of Boeing are currently building out the right side of a 12-week consolidation, according to MarketSmith analysis. The stock remains just 6% away from its proper buy point of 244.18. But investors should note that the stock holds a very low IBD Composite Rating of 4 on a scale of 1 to 99. Also, its EPS Rating rating maintains a ranking of 1 out of a best possible 99.

Chevron stock is now extended from a recent 5% buy zone. Share of the oil and gas company rose beyond the buy area of a 95.92 flat-base buy point on Wednesday. This comes after the stock triggered a sell signal from that buy zone by falling into the 7%-8% sell zone.

Shares remain 8% extended from the proper buy point.

Elsewhere in the Dow, shares of Johnson & Johnson (JNJ) traded back inside a key 5% buy zone after becoming extended from this area. The stock is currently finding solid support at its 50-day line, a bullish sign. Shares of Johnson & Johnson held a gain of 1.3% on Wednesday.

Stocks leading on the downside included Home Depot (HD) and Walmart (WMT), with losses of 2.7% and 1.7%, respectively.

Home Depot stock fell as much as 4% on Tuesday as shares gapped down below its 50-day moving average. Shares sold off despite the home improvement retailer reporting better-than-expected Q4 earnings and sales before the market opened.

Stocks Breaking Out

Shares of Ichor Holdings (ICHR) broke out on Wednesday from a rare ascending base with 46.84 buy point, according to MarketSmith analysis. The stock maintains excellent IBD Ratings with a 98 Composite and an 82 RS Rating.

The chip equipment maker designs, engineers, and manufactures critical fluid delivery subsystems for semiconductor capital equipment. Shares advanced a solid 2.5% on Wednesday.

Follow Rachel Fox on Twitter at @foxonstocks for more market insight and Dow Jones commentary. 

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