The Dow Jones industrials rose 0.5% in late-afternoon trading and look poised for a fifth straight advance in six sessions Tuesday, even as U.S. interest rates climbed sharply. Superregional banks took the lead, rising 1.8% as a group.
X But certain medical names also flexed strength; stocks in IBD’s Medical-Research Equipment/Services and Medical-Diversified industry groups also romped higher with similar-sized gains.
But the top industry group performance belongs to oil and gas royalty trusts (up 2.3%) and Canadian oil explorers (up 2.1%) with roughly an hour to go in the regular session. U.S. crude oil prices continue to swing back up after a sell-off on Jan. 5, with near-term futures up 1.4% to $62.60 a barrel, the highest level since 2015.
The Nasdaq composite lagged, rising 0.2%; the S&P 500 gained 0.3% despite another harsh sell-off in certain utility stocks, particularly in water supply and diversified utilities.
The Dow utility average dropped 0.9%; the Dow transports rallied 0.3%, stretching its year-to-date gain to 3.9%.
Despite the mild gains, breadth was slightly negative on the NYSE, as losing stocks edged winners by more than 200 issues. On the Nasdaq, winners and losers were roughly equal. Volume is running mildly higher vs. the same time on both main exchanges.
SVB Financial entered Leaderboard on Nov. 30, trading around 227 at the time. The stock is now extended after clearing a narrow pullback that offered an extra entry point at 223.92.
The ideal buy point was triggered on Oct. 26, when the stock lifted past a 191.48 entry in a saucer with handle. The next day, shares soared more than 12% in vigorous volume on an excellent third quarter (earnings up 32% to $2.79 a share, revenue up 22% to $544 million).
Target (TGT), up nearly 3% to 69.48 in fast turnover, has formed a bottoming base and could create a new buy point if resistance remains near 70.
The discount retailing titan, which reported upbeat same-store sales growth of 3.4% for November and December combined, offered aggressive buy points at both 63.20 and 63.72 within its bottoming base, a bullish pattern after a near-cataclysmic decline.
PayPal (PYPL) broke out of a narrow flat base at 79.48 but is stalling. The digital payments expert got as high as 80.39 intraday before gains melted to just 0.4%. But the stock gave follow-on entry points in December as it rebounded back above the 50-day moving average.
Meanwhile, Bitcoin-related ETFs traded rather calmly.
The Bitcoin Investment Trust (GBTC) lost just 1.5% to 2,172.60. Quiet price moves in low volume are ideal right now for the hot alternative currency-tracking vehicle. The 50-day moving average continues to rise and play catch-up.
Money continued to flow out of U.S. government bonds. The fresh cash may find its way into other asset classes, including equities and commodities such as industrial metals and crude oil.
The yield on the benchmark 10-year U.S. Treasury note jumped to 2.54%, its highest so far in 2018 and now just 8 basis points below the March 2017 peak of 2.62%.
The yield curve continues to be positive, which encourages lending and economic growth.