Stocks Post Modest Gains in Mixed Trade, Midcaps Outpace Market

Strategic Insights -

The Dow Jones industrial average, Nasdaq, and S&P 500 all climbed 0.9% in mixed trade on Wednesday, building on Tuesday's big gains. The midcap S&P 400 emerged as a standout performer, advancing 1.2% as retailers and select big-cap stocks drove the market higher. Despite a decline in gold prices, which weighed on mining stocks, other sectors benefited from encouraging analyst comments and corporate developments.

Key Takeaways:

  • The Dow Jones industrial average, Nasdaq, and S&P 500 all rose 0.9% in mixed trade on Wednesday, capitalizing on Tuesday's gains.
  • The midcap S&P 400 outpaced the general market with a 1.2% gain, led by retailers and select big-cap stocks.
  • Retailers Deckers Outdoor and Fossil led the midcap index with gains of 5% and 3%, respectively.
  • Bank of America rebounded 9% in heavy volume after analyst comments, while pharmacy chain CVS Caremark climbed 3% following a $4 billion share buyback announcement.
  • Avago Technologies gapped up 12% in heavy volume after reporting fiscal third-quarter earnings above expectations.
  • Steve Madden added 3% to its 9% gain from Tuesday, building on a possible base formation.
  • Gold mining stocks took a hit, with Yamana Gold, Eldorado Gold, Iamgold, and Silver Wheaton all declining by 2-3% in heavy trade.

Statistics:

  • The Dow Jones industrial average, Nasdaq, and S&P 500 all increased by 0.9% in mixed trade.
  • The midcap S&P 400 rose 1.2%, outpacing the general market.
  • Retailers Deckers Outdoor and Fossil gained 5% and 3% respectively.
  • Bank of America rebounded 9% in heavy volume.
  • CVS Caremark announced a $4 billion share buyback program and climbed 3%.
  • Avago Technologies gapped up 12% in heavy volume after reporting fiscal third-quarter earnings.
  • Gold mining stocks declined, with Yamana Gold dropping 3.1%, Eldorado Gold falling 3.4%, Iamgold dropping 2.1%, and Silver Wheaton declining 2.3%.

Sources:

  • Investors' Business Daily, "Stocks post modest gains in mixed trade, midcaps outpace market" (2011).