Stock Market Adds To Gains As Bullish Earnings Lift Stocks

The stock market continued to roll Wednesday morning, led by bullish earnings reports that lifted the broad market.

Stock market indexes are rising above short-term trends. The Nasdaq composite rallied 1.4% and rose above a four-day ceiling around 14,200. The S&P 500 rose 1.1% and is now above its 21-day exponential moving average around 4525.

The Dow Jones Industrial Average added 0.8% and is back above the 50-day moving average.

Small caps continued to outperform this week, as the Russell 2000 jumped 1.4%.

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

U.S. Stock Market Today OverviewIndexSymbolPriceGain/Loss% ChangeDow Jones(0DJIA)35715.10+252.32+0.71S&P 500(0S&P5)4569.26+47.72+1.06Nasdaq(0NDQC )14391.93+197.47+1.39Russell 2000 (IWM)205.60+2.84+1.40IBD 50 (FFTY)39.03+0.64+1.67Last Update: 11:58 AM ET 2/9/2022Stocks Gain As Bullish Earnings Flood In

Grain processor Bunge (BG) topped earnings and sales targets, but after rising almost 1% in early morning trade shares fell 1% by noon ET. Bunge shares are in a buy range past a 97.09 cup-base entry after recovering from a post-breakout decline.

Meanwhile, several travel stocks posted sharp gains on Wednesday. Expedia (EXPE) stock broke out on Tuesday and added another 1.8% Wednesday, with earnings due Thursday. Shares of the online travel site hit new highs after clearing a 190.88 buy point.

CME Group (CME) climbed to new highs and is now extended from its buy range, which it formed when it passed a buy point of 232.74 off a flat base. Shares gained 4.5% Wednesday at midday after the company released earnings that beat analyst forecasts.

CME reported net income attributable to the company of $625.2 million, compared with $424 million in the prior year. Earnings were $1.71 a share, compared with $1.18 a share in the year-ago period. Adjusted earnings were $1.66 a share. Analysts polled by FactSet were expecting $1.64 a share.

Chicago-based CME runs four derivatives and futures marketplaces that trade commodities and other financial products.

In the Dow, UnitedHealth Group (UNH) rose 1% and is forming a flat base with a 509.33 buy point.

Market Rally Right At Key Levels With Inflation Data Due; What To Do Now

Yields Drop, Lifting Tech Stocks

The yield on the 10-year Treasury note fell to 1.92% after rising to the highest point since July 2019.

Tech stocks, which tend to be sensitive to interest rates, rallied. Microsoft (MSFT) climbed nearly 1.2%. Alphabet (GOOGL) is trying to climb back above the 50-day moving average.

Nvidia (NVDA) added nearly 4.6%, putting it on pace for its eighth gain in the past nine sessions. The stock has been bouncing off the 200-day moving average.

CVS Health (CVS) fell more than 5% after the drugstore and health care company reported adjusted fourth-quarter earnings of $1.98 a share, an increase of 52%. Results topped estimates, but its forecast disappointed. Revenue rose 10% to $76.6 billion as same-store sales ballooned 13.4% on Covid vaccines and tests administered. The stock came off a nearly record high.

The Innovator IBD 50 ETF (FFTY) climbed 1.3%.

Follow Michael Molinski on Twitter @IMmolinski