Stocks Post Solid Gains, But Finish Off Session Highs

The major stock indexes, including the S&P 500, Dow Jones industrial average, and Nasdaq, closed with solid gains on Wednesday, but ultimately gave up their session highs. The NYSE fared the best, recording a 1.4% increase in volume. The gains were seen as a positive sign, despite the fact that the session highs were not maintained.

Key Takeaways:

• Baxter International ([STOCK[BAX]]) experienced significant turnover as the stock fell 3%, bucking the overall positive trend. The decline was attributed to negative reports from analysts at UBS and Bank of America Merrill Lynch.
• The stock dropped below its 50-day moving average but closed just above it, leaving it vulnerable to further declines.
• Baxter continues to work on a new base and remains about 12% off its recent high, with an IBD Composite Rating of 93 out of 99.
• The Federal Reserve's latest meeting minutes revealed that policymakers considered a third round of bond purchases, with two officials advocating for this stronger step.
• The market appeared to respond positively to hopes for plans to recapitalize euro zone banks.
• Economic data scheduled for release on Thursday includes fresh figures on weekly jobless claims and the U.S. international trade gap.
• Google ([STOCK[GOOG]]) and JPMorgan Chase ([STOCK[JPM]]) are among the companies set to report quarterly results.

Statistics:

• The S&P 500 rose 1% on the day.
• The Dow Jones industrial average gained 0.9%.
• The Nasdaq increased 0.8%.
• The NYSE recorded a 1.4% increase in volume.
• Baxter International ([STOCK[BAX]]) fell 3% on significant turnover.
• The stock's IBD Composite Rating is 93 out of 99.
• The Federal Reserve's meeting minutes revealed that two policymakers advocated for a third round of bond purchases.

Sources:

• Investor's Business Daily, Copyright 2011 Investor's Business Daily, Inc.