Stocks Rumble Ahead; Nasdaq Retakes 50-Day Line


Stocks pounded higher in rising volume as the Nasdaq climbed above its 50-day moving average.

The Nasdaq gained 1.2%, while the S&P 500 and the Dow Jones industrial average each rose 1%.

Volume rose on both major exchanges, according to preliminary calculations.

Among the Dow components, Caterpillar (CAT) popped 2.5%, ending five sessions of losses. The former market leader remains under its 200-day and 50-day lines and is 27% off its February high. All five stocks that trade above 15 a share in the construction and mining machinery industry group rose Tuesday.

In the apparel sector, which was No. 3 of 33 sectors Tuesday, all 18 stocks that trade above 15 a share were up. Michael Kors (KORS) scored the biggest percentage gain as it jumped more than 5% in volume that was 27% above average.

RV and bus maker Thor Industries (THO) notched a 52-week closing high as it rose 2% in 59% heavier-than-usual volume. The gain was the fourth straight for the small-cap stock. The RV and manufactured housing industry group was No. 8 of 197 groups as of Tuesday’s IBD.

Economic news Tuesday was a mix of data that beat, missed and matched expectations, according to Econoday.

Industrial production for September climbed 0.4%, easily topping the consensus view for 0.2%.

The consumer price index for September provided a miss and a beat. The index rose 0.6% — more than the expected 0.5% as the cost of gasoline surged. But the core index, which excludes food and energy, grew 0.1% — less than the expected 0.2%.

The National Association of Home Builders said its sentiment index was 41 this month, matching the Street’s estimate.

The second presidential debate Tuesday night could give the market something else to chew on.

The first debate on Oct. 3 generally was regarded as a victory for Mitt Romney. While the indexes haven’t changed much since then, several industry groups regarded as potentially benefiting from stances by one candidate or the other did change rather sharply.

The oil drilling group, which would be expected to have a clearer go-ahead from Romney, has jumped 7% since the night of the first debate. Shares of hospitals, which would have fewer uninsured patients under ObamaCare, have dropped 13%.

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