The stock market bolstered gains Wednesday afternoon after the Federal Reserve confirmed it is tapering asset purchases. Small caps led.
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Indexes were volatile after the Fed announced it will start cutting back its bond purchases by $15 billion this month and plans to end all purchases by June. The Fed continued to say inflation is due to “transitory” factors.
The Fed had been telegraphing the move for months. Investors also sought details on when the Fed may start raising interest rates from near zero, but the central bank did not offer guidance on that front.
The yield on the 10-year Treasury note was 1.57% before the Fed news, and rose past 1.6% before descending a bit Wednesday afternoon. For the day, the yield was up 5 basis points.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36131.34 | +78.71 | +0.22 |
| S&P 500 | (0S&P5) | 4654.16 | +23.51 | +0.51 |
| Nasdaq | (0NDQC ) | 15781.13 | +131.53 | +0.84 |
| Russell 2000 | (IWM) | 239.61 | +5.16 | +2.20 |
| IBD 50 | (FFTY) | 50.75 | -0.14 | -0.28 |
Last Update: 2:58 PM ET 11/3/2021 |
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Around 3 p.m. ET, the main indexes held gains and traded near session highs. Volume rose on the NYSE and Nasdaq compared with the same time on Tuesday.
The Nasdaq climbed 0.8% and the S&P 500 added 0.5%. Both made record highs again.
The Dow Jones Industrial Average rose 0.2%. Goldman Sachs (GS) fell back below its 420.86 buy point after clearing that level Tuesday.
Small Caps, Consumer Shares Lead Stock Market
Small caps have been leading the market all day, and in afternoon trading the Russell 2000 was up 2.2%. Much of the small-cap strength rested on health care, consumer discretionary and financials (mainly regional banks).
Consumer stocks led the market as Consumer Discretionary Select Sector SPDR (XLY) climbed 1.3%. The sector ETF roared 12.1% in October and is up more than 2% this week.
Academy Sports & Outdoor (ASO) broke out of a cup with handle base, according to MarketSmith pattern recognition. Volume was heavy, a good indicator for the breakout. From the 45.53 buy point, the buy zone goes to 47.81. Academy’s move came after Nike (NKE) and Dick’s Sporting Goods (DKS) announced they will combine their membership programs.
Syneos Health (SYNH) rose past the 97.57 buy point of a cup without handle base in active trading. The provider of clinical trial services for pharmaceutical companies beat profit expectations earlier today and updated its full-year guidance.
IBD 50 Lags Stock Market
Innovator IBD 50 ETF (FFTY), however, was off 0.4%. Most of the damage could be blamed on Digital Turbine (APPS), which plummeted almost 19% in heavy trading. The stock is now below the 90.59 buy point of a handle in a large double-bottom base, which is a sell signal.
Late Tuesday, Digital Turbine beat earnings expectations, but its guidance appeared to disappoint investors. The software company connects wireless service providers, smartphone makers, and publishers with app developers and…
Read More: Stock Market Strengthens After Fed Starts Taper; Small Caps Lead, But