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Stock Market Closes Higher As Tesla Adds Drama In Final Hours

The stock market closed higher Tuesday, as big news on Tesla (TSLA) gave the market some suspense in the afternoon.

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The Nasdaq climbed 0.3% to make it six straight gains. The S&P 500 added 0.3% also for its fourth straight win. The Dow Jones industrial average not only led with a 0.5% increase, but the industrials made the highest close since Feb. 26.

Small caps kept up as the Russell 2000 rose 0.3%. The index added some more room above its 50-day moving average, where the Russell 2000 went through a period of hesitation the past couple of weeks.

Volume rose on the NYSE and fell on the Nasdaq from Monday’s levels, according to unconfirmed data.

Tesla stood out in afternoon trading, when shares of the electric-car maker were halted starting around 2 p.m. ET for a news release. The company issued a statement at 3:30 p.m. confirming that CEO Elon Musk is considering taking the company private but a final decision has not been made. Earlier, Must tweeted that he was considering taking the company private at $420 a share.

Tesla shares broke out of a cup-type base after trading resumed at 3:45 p.m., clearing a 373.83 buy point. The stock rose more than 7% before trading was halted and closed 11% higher.

Fragmented Leadership

Just like on Monday, market leadership was fragmented. Machinery, leisure and metals posted some of the best gains. Biotechs and pharmaceuticals also outperformed the broad indexes.

Earnings reports continued to spark big moves, including some breakouts.

Renewable Energy (REGI) flew past a flat base after the company beat Q2 earnings expectation. The stock gapped past the 18.55 buy point in heavy trading. The company specializes in alternative fuels, namely bio-fuels made from greases, oils or sugars.

Five9 (FIVN) gapped to a new high, clearing a flat base. The cloud-based customer management software firm breezed past profit estimates. The stock is extended from the 39.65 buy point.  Volume was more than five times its average and the relative strength line made a new high as well. Those are traits that reinforce the breakout.

Etsy (ETSY) surged 15% at the open on a mixed earnings report, and rose above the 45.98 buy point of a flat base. But shares erased most of the gain, closing only 3% higher. The online arts and crafts marketplace is on IBD Leaderboard.

Zebra Technologies (ZBRA) beat sales and earnings expectation for Q2 and raised guidance for the September quarter. The merchandise-tracking systems maker broke out of double-bottom base with a 150.76 buy point. Volume was about four times more than normal.

But Weight Watchers (WTW) gapped sharply below its 50-day line in big volume after the company beat Q2 expectations, but revenue fell short as subscriber growth slowed. The sell-off was a blow for an industry group that had climbed to the top five of 197 groups.

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