By VICTOR REKLAITIS, INVESTOR’S BUSINESS DAILY
Stocks achieved decent gains Wednesday for a second straight session, recovering further from Monday’s broad sell-off.
The S&P 500 rose 0.9%, while the Nasdaq and Dow Jones industrial average both added 0.7%. Volume decreased a little on the NYSE, but increased slightly on the Nasdaq, according to early data.
Nationstar Mortgage Holdings (NSM) jumped 7% in huge volume following a bullish pending-home sales report. The mortgage servicer cleared a 20.46 buy point from a three-weeks-tight pattern. The March IPO has an IBD Composite Rating of 98, near the best-possible grade of 99.
On the downside, O’Reilly Automotive (ORLY) plunged 14% a day after the auto parts retailer cut its same-store sales forecast. It dropped below its 200-day moving average in big trade. O’Reilly is No. 21 in the latest IBD 50 lineup.
Chipotle Mexican Grill (CMG) fell 6% in heavy turnover, closing below its 50-day moving average. A negative analyst note appeared to spur the selling. Investment Technology Group said in a report that Chipotle’s same-store sales appear to be decelerating.
In economic news Wednesday, U.S. pending-home sales rose 5.9% in May to the highest level since April 2010. Analysts expected a 1.2% gain. Stocks had pulled back ahead of the report, but strengthened after its release. Also, orders for durable goods rose much more than expected in May.
On Thursday, the session’s economic news will include an updated estimate for U.S. first-quarter GDP, as well as fresh data on new weekly jobless claims. EU officials also will begin a two-day meeting about their ongoing debt crisis, and the U.S. Supreme Court is expected to hand out its ruling on President Obama’s health care reform.
Family Dollar (FDO), Accenture (ACN) and Nike (NKE) are among the companies expected to report quarterly earnings.