The markets closed higher today though well off their highs. Initially, to start the day investors noticed the strong breadth with an 8 to 1 advance decline reading. As the day progressed, however the markets pulled back, giving back most of the mornings gains. Ultimately the Dow closed higher on the day by 140 after being up over 200. The S&P 500 closed higher by 20 and the Nasdaq added 53 on the day.
Sector News
Oil has enjoyed mostly bullish action this week following the pullback Monday that was bought off technical support. The commodity continues to be in a steady uptrend, trading nicely above the 20 day moving average. Technical support areas of the prior highs have continued to act favorably for the bulls.
Oil related areas like the explorers (NYSE: XOP) have also moved towards highs on the strength of oil. The oil explorers have been underperforming relative to the strength in oil since the start of the year, trading in a wide range. Recently pricing moved back towards the highs of the range leaving the bulls itching for a breakout.
Regional Banks (NYSE: KRE) attempted a rally off lows following the strong selloff last week when the Federal Reserve announced they would leave rates unchanged for the remainder of 2019. Technical traders noted the sector being able to close at the highs of the session showing the bulls now ready to pick at least a temporary bottom.
Stock News
McDonalds (NYSe: MCD) shares moved back towards all time highs as the company announced it is making it's first acquisition in over 20 years. The company will purchase Dynamic Yield, an AI firm for around $300 million which will allow them to revamp their ordering system. Shares are higher by about 7% on the year.
Bed Bath & Beyond (NASDAQ: BBBY) shares were sharply higher today as it was reported that a group of activist investors have joined forces to make an attempt to replace the entire board. The group of investors now has about a 5% stake in the retailer and hopes to restructure the company. Shares hit new highs on the year on today's news.
Nvidia (NASDAQ: NVDA) shares were higher on the day thanks to a positive rating from Piper Jaffray which initiated coverage with an overweight rating. The analyst said the stock looks attractive at these levels and they will overcome current industry headwinds.