The U.S. stock market extended its rally Wednesday, after sagging Chinese stocks got a welcomed boost and investors waited for the Fed to make an expected increase in interest rates.
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The Nasdaq led with a 1.9% gain, leaving its weekly gain at nearly 3%. The S&P 500 added 1.2%.
The Dow Jones Industrial Average rose 0.9%. Dow component UnitedHealth Group (UNH) climbed past the 501.03 buy point of a double-bottom base in heavy trading. The stock, which is also in the IBD 50, receded slightly below the entry.
Volume rose on the NYSE and Nasdaq compared with the same time on Tuesday.
Chinese Stock Market Jumps Back To Life
Chinese Vice Premier Liu He and other officials made comments to support the ailing Chinese stock market. Among the remarks, officials promised to roll out market-friendly policies and keep the capital market running smoothly. Other comments suggested China may ease its long crackdown on technology companies.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33853.61 | +309.27 | +0.92 |
| S&P 500 | (0S&P5) | 4315.29 | +52.84 | +1.24 |
| Nasdaq | (0NDQC ) | 13197.28 | +248.66 | +1.92 |
| Russell 2000 | (IWM) | 199.12 | +3.34 | +1.71 |
| IBD 50 | (FFTY) | 37.40 | +0.71 | +1.94 |
| Last Update: 10:14 AM ET 3/16/2022 | ||||
The Hong Kong Hang Seng Index soared 9.1%, its largest one-day gain since Oct. 30, 2008. The Shanghai Composite jumped 3.5% in the biggest rise since July 6, 2020. The Tokyo Nikkei 225 also climbed, closing with a 1.6% increase.
The Hang Seng has been in a bear market that saw the index plummet to the lowest level since June 2012. KraneShares China Internet ETF (KWEB) jumped 21%. The iShares China Big Cap ETF (FXI) rose more than 11%.
Tencent Holding (TCEHY), Alibaba (BABA), Vipshop (VIPS) and Nio (NIO) soared 14% to 20% in early U.S. trading.
At 2 p.m. today, the Federal Reserve will announce its new policy statement, which is widely expected to come with a quarter-point interest rate increase. It would be the first of several more rate hikes investors expect.
The stock market will be watching Fed Chairman Jerome Powell’s comments for indications on the pace of the tightening cycle and the Fed’s plans to unwind its massive balance sheet.
Ukrainian President Volodymyr Zelenskiy, speaking to members of Congress, asked for more U.S. aid in fighting Russia’s invasion. While fighting continued, a path toward a cease-fire was starting to emerge, reports said.
Starbucks, Costco, J.B. Hunt Make Key Moves
Starbucks (SBUX) rallied 7% in big volume after the company said CEO Kevin Johnson will be retiring, and former chief Howard Schultz will be interim chief executive. Starbucks said Johnson’s departure had been discussed for about a year, and Johnson wanted to wait until the pandemic faded. Starbucks stock earlier this week touched an August 2020 low.
Innovator IBD 50 ETF (FFTY) leapt 2% as two stocks in the index rose above buy points.
Costco (COST) broke out from a cup with handle base in heavy trading. The relative strength line also made new highs.
J.B. Hunt (JBHT) rose 3.5% and topped the 208.97 buy point of a flat base. Volume is heavy and the relative strength line is making new highs. But the trucking company’s shares dipped below the buy point after the initial push.
Tricon Residential (TCN) and Commercial Metals (CMC) rose to new highs.
Stock Market Gets Retail Sales Data
In economic news, retail sales rose a sluggish 0.3% in February, slightly below economists’ forecasts. Excluding autos, sales climbed 0.2%, below estimates for a 0.9% increase. But the January increase was revised upward to 4.9% from 3.8%. SPDR S&P Retail ETF (XRT) gapped up 2.6%.
“After bolting out of the gates this year, retail spending took a breather in February, though real consumer spending still looks to advance modestly in the first quarter,” said Sal Guatieri, BMO Capital Markets economist. The modest increase in February largely reflected higher prices rather than volumes.
“Though cooling after January’s splurge, American consumers appear reasonably well positioned to keep spending, supported by recent massive job gains and high household savings,” he added. “This assumes, of course, no further major blows to fuel and food costs, confidence, and financial conditions stemming from the Russia-Ukraine war.”
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