By Victor Reklaitis, Investor’s Business Daily
Stocks rallied Tuesday, but ended a little off their best levels after Senate Majority Leader Harry Reid said that a deal to resolve the fiscal cliff will be unlikely before Christmas.
The Nasdaq climbed 1.2% and closed above resistance at its 50-day line. Big-caps Apple (AAPL), Google (GOOG) and Amazon.com (AMZN) helped the tech-heavy index outperform. Meanwhile, the Dow Jones industrial average rose 0.6% and the S&P 500 rose 0.7%. Volume surged across the board.
NeuStar (NSR) rose 2% to an all-time high in more than double its average volume. The stock cleared a 41.41 buy point in a cup base. NeuStar touched the 41.41 trigger Thursday, but did so in lackluster trade. The telecom services firm provides a range of call routing and database services. It has delivered accelerating profit growth in recent quarters.
NetSuite (N) bolted 6% and cleared resistance at its 50-day moving average in double its average volume. The stock is in a consolidation with a 67.12 buy point. NetSuite’s latest pattern corrected 15.5%, which is just a tad too deep for a flat base.
Celgene (CELG) followed through from Monday’s breakout. It added 2% to a new high in volume that was higher than Monday’s breakout. It’s now 3% past an 80.04 buy point. Early Tuesday, the biotech announced positive results from a study of its experimental pomalidomide treatment for multiple myeloma.
Urban Outfitters (URBN) gapped up and gained 4% in massive trade. But shares were up as much as 8% intraday. The owner of Urban Outfitter and Anthropologie chains said in a regulatory filing Monday its fourth-quarter same-store sales rose in the high-single-digits. The stock cleared a low handle in its base.
On the downside, dollar stores got hit as Dollar General (DG) reported Q3 earnings above views, but expressed caution for the rest of the year due to competition. Shares tumbled 8%. Rivals Dollar Tree (DLTR) and Family Dollar Stores (DG) slumped 4% and 8%, respectively.
Data on import and export prices and the Treasury budget will be out Wednesday. The Fed will also conclude a two-day meeting. Economists expect the central bank to announce a new round of bond purchases Wednesday to keep interest rates low and spur demand for homes, autos and other goods to boost economic growth.