Stocks Extend Gains After Fed Minutes; Nvidia Jumps, Ulta Drops – Investor’s Business Daily

The stock market extended its gains in afternoon trading following the release of the minutes from the May 2-3 Fed meeting. The Fed strongly indicated that in June it will consider another interest rate increase. The minutes also indicated how the Fed will most likely unwind its $4.5 trillion balance sheet later this year.

The Dow Jones industrial average led the way with a modest 0.3% gain, while the S&P 500 and Nasdaq moved up 0.2% each. Volume edged higher on the NYSE, but fell on the Nasdaq vs. the same time Tuesday.

Among the Dow industrialsMcDonald’s (MCD) and Goldman Sachs (GS) paced the advancers with gains of 1.4% and 1.3%, respectively. Coca Cola (KO) and Visa (V) followed up, rising 1.1% each.

On the downside, General Electric (GE)and Cisco Systems (CSCO) continued their slides, dropping 1.7% and 1.3%, respectively.

Chip leader Nvidia (NVDA) jumped to record highs early Wednesday, but its gains were pared in afternoon trading. At its high, the stock was up 3%; shares were trading up 1.5%. According to a Bloomberg report, Softbank — the Japanese bank — has amassed a 4.9% stake in the graphics chip maker.

Intuit (INTU) was a top performer in the S&P 500, rising 6.8%, after the company topped earnings and sales forecasts late Tuesday. The financial software provider broke out of a cup-with-handle base on Tuesday on volume that was 36% above average.

On the downside, Tiffany (TIF) and Signet Jewelers (SIG) plunged about 8% apiece. Brokerage house T. Rowe Price (TROW) fell almost 4%, while home improvement retailer Lowe’s (LOW) dropped almost 3%. Lowe’s missed both top- and bottom-line quarterly estimates, while guiding its full-year earnings below views.

Retailer Ulta Beauty (ULTA) dropped almost 4% after being downgraded from buy to hold at Edward Jones. The retailer will report its Q1 earnings late Thursday

China stocks continued their recent declines in the stock market today after Moody’s downgraded China’s credit rating. Live video streaming provider Momo (MOMO) took the most heat, falling over 6%, after JPMorgan downgraded shares to neutral from overweight. The stock’s three-day losing streak has seen the price fall almost 17% from its highs.

NetEase (NTES) fell 1.6%, while Weibo (WB) dropped 1.9%. Alibaba (BABA) emerged unscathed, inching down 0.1%.

Action in the IBD 50 was mostly positive in afternoon trading. On the upside, (STMP) continued its advance, rising 4.7%. Shares are just off a 136.10 cup-shaped base entry. Dave & Buster’s (PLAY) moved up 2.5%

On the downside, Dycom (DY) plunged more than 16% after issuing weak guidance for the current quarter.

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