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Dow Jones Industrials Leads Stocks Up; This Finance Leader Breaks Out Again | Stock News & Stock Market Analysis

Powered by strong gains in construction and mining gear firm Caterpillar (CAT) and diversified manufacturer 3M (MMM), the Dow Jones industrials flexed more strength with a 0.8% gain to lead the stock market higher at lunchtime Tuesday on Wall Street.

XAutoplay: On | OffCaterpillar (up more than 4%) and 3M (up nearly 7%) both gapped up in heavy volume, a sign that institutions are putting even more money to work. Both members of the Dow Jones industrial average are also extended from proper buy points (99.56 for Caterpillar in a 13-week flat base, 214.67 for 3M in a 15-week flat base).

The S&P 500 and the Nasdaq composite lagged the 30-stock Dow Jones industrial average, rising around 0.2%.

Volume zoomed sharply higher vs. the same time Monday on the NYSE but cooled a bit on the Nasdaq.

Meanwhile, TD Ameritrade (AMTD) also showed nice action as shares retook a 47.36 buy point in a nine-week flat base that is part of a long base structure. Shares jumped 2% to 49.04 after the online broker reported its best quarterly results in more than three years.

TD Ameritrade, which has merged with privately held competitor Scottrade, posted a 29% jump in third-quarter profit to 49 cents a share, the biggest year-over-year increase since a 35% increase in Q1 of 2014. Revenue rose 19% to $983 million.

That 19% jump also represents an acceleration in the rate of growth for a fourth quarter in a row. Revenue was flat in Q3 2016, then picked up 5%, 7%, 11% in the next three quarters through Q2 of this year.

TD Ameritrade shares had originally cleared the 47.36 buy point (10 cents above the base’s left-side high) in late September, getting to as high as 50.72 before pulling back. Yet the pullback did not trigger any sell signals.

At the intraday low of 46.66 on Oct. 19, the stock was just 1.5% below the entry. Not a big enough drop to warrant a sell.

The buy zone for TD Ameritrade goes up to 49.73, or 5% above the proper entry. The stock sports an excellent up/down volume ratio of 1.6, as seen in IBD Stock Checkup. Prefer those stocks with a 1.0 or higher when they are attempting breakouts.

In other financial markets, investors continue to trim their holdings in U.S. long-term government bonds. The yield on the benchmark Treasury 10-year note edged up to 2.40%, the highest since May 10. The Street is almost unanimous in predicting a quarter-point rise in the short-term fed funds rate during the Federal Reserve’s final meeting of 2017 in December.

U.S. crude oil futures rose 0.9% to $52.36 a barrel. The U.S. dollar strengthened against the yen (almost at 114 yen vs. the dollar) but lost ground against the euro.

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