Mar. 17, 2009 (Investor's Business Daily) -- Markets ended softly higher Tuesday, a welcome change at first glance from Monday's tumble on rising volume.
The advance broadened throughout the day, spreading from fewer than 50% of industry groups posting advances in morning trading to nearly 95% of the 197 groups tracked by IBD posting gains by the close.
A kick up in oil prices helped spread the joy, pulling stocks like Layne Christensen (LAYN), T-3 Energy Services (TTES) and Cal Dive International (DVR) to better-than 10% gains.
But leading stocks showed little verve, making the day an iffy sign coming on the heels of a distribution day. The market needs up days on higher volume, down days on soft volume, if the rally is to survive.
In after hours action, Darden Restaurants (DRI) jumped 6%, adding to a 4% gain during the regular session. The operator of the Red Lobster and Olive Garden chains is scheduled to release it Q4 earnings after the close, but had not reported as this update went to press.
MGM Mirage (MGM) spiked 7% in extended trading, reversing a 6%, regular session loss.
On the downside, Guess (GES) dove 2%, erasing its 3% gain in regular session trading. After hours fourth quarter reports from MGM and Guess were also pending.
Wednesday sports a busy economic calendar. The consumer price index is due from the Labor Department prior to the market open. The Energy Information Administration reports weekly crude oil inventories after 10:30 a.m. EDT, and the Federal Open Market Committee is scheduled to deliver a decision on interest rates near 2:15 p.m. EDT.
Wednesday's earnings calendar includes a report from General Mills (GIS) before the market opens, and Excel Maritime (EXM), IHS (IHS) and Oracle (ORCL) after the closing bell.
4:15 p.m. Update: Indexes Close At Session Highs
BY JUAN CARLOS ARANCIBIA
The market closed at session highs as it rebounded from Monday's sell-off.
The Nasdaq's 4.1% surge led the market. The S&P 500 jumped 3.2%, the NYSE composite 2.9%, the Dow 2.5%.
Preliminary readings showed lower volume. If confirmed, that would put a damper on an otherwise strong advance.
Advancing stocks led decliners by 7-to-2 on the Nasdaq and 11-to-3 on the NYSE.
Technology stocks led on bullish analyst comments about Cisco Systems (CSCO). Internet stocks were among the day's other winners.
3:15 p.m. Update: Indexes Hold Near Highs Amid Broad Gains
BY ALAN R. ELLIOTT
Indexes pushed to new highs as the session's gains spread to an increasing number of sectors.
The Nasdaq stepped up 2.4%. The S&P 500 and the NYSE composite posted gains of 1.7% and 1.6%, respectively. The Dow was up 1.2%.
Cable and satellite services operator Liberty Media (LBTYA) continued to lead the Nasdaq 100's price percentage gainers. Amazon.com (AMZN) and Yahoo (YHOO) both posted better-than-4% advances, but in weak volume.
Market volume picked up some, but held about 20% lower on the NYSE and 7% slower on the Nasdaq. Nearly 90% of IBD's 197 industry groups were up so far in the session, up from about 50% in morning trading.
Five industry groups held better-than 4% advances: office supplies, mobile homes, commercial schools and paper products.
DeVry (DV) popped 6% higher in above-average trade, rebounding from 5% drop Monday. Shares have fallen sharply since January, and are 29% below their late-January high.
FactSet Research Systems (FDS) gapped up to add 6% in powerful trading. The financial data researcher reported fiscal Q2 earnings of 71 cents a share, beating expectations. The company guided fiscal Q3 forecasts above prior expectations. The move put the stock back above its 10-week moving average, but shares remain deep below August's high.
2:15 p.m. Update: Indexes Gain, But Quality Stocks And Volume Are Missing
BY PATRICK CAIN
Despite indexes making gains, few quality stocks are moving on high volume.
The Nasdaq led with a 2.1% gain while the Dow trailed the pack with a 1.3% uptick. The S&P 500 rose 1.8% and the NYSE composite added 1.7%.
Volume was down on both exchanges.
Big-name tech companies made gains. Intel (INTC) and Microsoft (MSFT) were both up 3%, but in light trade.
