Stock Market Awaits Key News; Why InMode Is Soaring Today

The stock market improved at midday Tuesday as the IBD 50 outperformed thanks mainly to two soaring stocks.

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Today’s stock market has been quiet as investors wait for key headlines later in the week. The consumer price index and the minutes from the latest Fed meeting come out Wednesday. A series of bank earnings reports also begins Wednesday, with BlackRock (BLK) and JPMorgan Chase (JPM) the first to report.

Citigroup (C), Morgan Stanley (MS), Bank of America (BAC) and Wells Fargo (WFC) announce Thursday.

Indexes, which reversed lower Monday, struggled to regain some of the momentum from last week. But they improved at midday. The S&P 500 and Nasdaq composite rose 0.3%.

Stock Market Indexes Nearly Flat

The Dow Jones Industrial Average rose 0.3% also. Salesforce.com (CRM) rose more than 2% and is back above a 275.32 buy point.

Small caps outperformed, as the Russell 2000 climbed 0.6%.

Volume rose on the Nasdaq and NYSE compared with the same time on Monday.

Innovator IBD 50 ETF (FFTY) also beat the market with a 1.5% gain, and much of that was due to just two stocks.

HubSpot (HUBS) rallied more than 13% and made a new high after finding support at the 10-week moving average.

InMode (INMD) jumped 8% after the company announced preliminary third-quarter results that were well above analysts’ expectations.

It forecast revenue of $93.5 million to $94 million, and full-year revenue of $343 million to $347 million. It also sees earnings of 53-54 cents a share, adjusted for the Sept. 30 2-for-1 stock split. Analysts expected Q3 sales of $74.9 million and EPS of 36 cents, according to FactSet.

The company will release full results on Oct. 26. The stock has been wild but has held above its 50-day moving average.

Solar Stocks Lead Stock Market

Energy stocks rose again after the price of U.S. crude backtracked and was nearly flat at $80.47 a barrel. U.S. crude oil topped $80 a barrel this week and is at a seven-year high.

Energy Select Sector SPDR (XLE) rose 0.3% and remains near the 56.75 buy point of a cup base.

Solar stocks, which act as a substitute when oil prices are high, are today’s No. 1 industry group, up nearly 5%. Enphase Energy (ENPH) climbed above its converged 50- and 200-day moving averages as it forms a base.

First Solar (FSLR) topped the Sept. 14 high after rising 4% in heavy trading. SolarEdge Technologies (SEDG) is trying to break out from a double bottom with a 299.31 entry.

Mining stocks were mainly higher, notably lithium and uranium plays. Lithium prices are on the rise thanks to demand for electric vehicles and as companies race to secure supplies. Some acquisitions are taking place in the industry,…