U.S. stocks rose Wednesday, with major indexes advancing in a broad rally as shareholders appeared to shake off fears of rising bond yields, assisting equities resume a recent uptrend.
In a notable milestone for the day, an index of small-capitalization stocks jumped to a new record, extending a recent stretch of outperformance by small companies relative to their larger peers.
The Dow Jones Industrial Average rose 62.52 points, or 0.25%, to 24,768.93. The blue-chip average has risen in nine of the past 10 sessions.
The S&P 500 index was up 11.01 points, or 0.41%, to 2,722.46. The day’s gains were broad, with nine of the 11 primary S&P 500 sectors ending higher. Materials were the top performers of the day, closing 1.2% higher, while consumer staples and consumer discretionary stocks both rose 0.8%. The two declining sectors — utilities and real estate — are seen as ones that underperform in periods of rising bond yields, as their higher-than-average dividend yields become less attractive to income-seeking shareholders.
The Nasdaq Composite advanced 46.67 points, or 0.63%, to 7,398.30.
The small-cap benchmark Russell 2000 index hit an all-time high of 1,620.64. The index also closed at a record, ending at 1,616.37, a gain of 16.03 points, or 1%.
Construction on new houses dropped 3.7% in April. The annual rate of new homes being built declined to 1.29 million last month from a revised 1.34 million pace in March that was the strongest since mid-2007.
Industrial production rose 0.7% in April, slightly above Wall expectations of a 0.6% increase. (Source: MarketWatch)
Top Pick for Thursday: International Business Machines Corporation (IBM)
International Business Machines Corporation (NYSE: IBM) has grabbed attention from the analysts when it experienced a change of 0.62% in the last trading session to close at $144.63. A total of 3,167,505 shares exchanged hands during the intra-day trade contrast with its average trading volume of 4.84M shares, while its relative volume stands at 0.65. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name. When stocks are *very* In Play one can see a RVOL of 5 and above. The higher the RVOL the more In Play the stock is.
Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, International Business Machines Corporation (NYSE: IBM) stock is found to be 0.89% volatile for the week, while 1.51% volatility is recorded for the month.
The stock has a market cap of $132.34B and the number of outstanding shares has been calculated 920.68M. Based on a recent bid, its distance from 20 days simple moving average is -0.10%, and its distance from 50 days simple moving average is -4.35% while it has a distance of -4.56% from the 200 days simple moving average. The company’s distance from 52-week high price is -15.49% and the current price is 3.95% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 42.55 together with Average True Range (ATR 14) of 2.52.
Past 5 years growth of IBM observed at -4.00%, and for the next five years the analysts that follow this company is expecting its growth at 2.92%. The stock’s price to sales ratio for trailing twelve months is 1.65 and price to book ratio for the most recent quarter is 7.29, whereas price to cash per share for the most recent quarter are 10.30. Its quick ratio for the most recent quarter is 1.30. Analysts mean recommendation for the stock is 2.60. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
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