Google, IBM and AMD report strong earnings as the tech sector led Wednesday’s advance. 

While the major stock indices enjoyed a modest “relief rally” following the passage of a temporary debt ceiling forbearance bill by the House of Representatives, the tech sector took the lead after Google (NASDAQ:GOOG), IBM (NYSEARCA:IBM) and AMD Micro (NYSEARCA:AMD) reported strong quarterly earnings.

As of 2:54 EST, the Dow Jones Industrial Average advanced 75 points (0.55 percent) to 13,787.  The S&P 500 Index rose 0.21 percent to 1,495 (NYSEARCA:SPY).  As the chart (at left) indicates, the S&P 500 continues to rise above its previous resistance level of 1,470.  Its Relative Strength Index is in the “overbought” range at 72.12 (Chart courtesy of Stockcharts.com).  The Nasdaq Composite advanced 0.44 percent to 3,157 (NASDAQ:QQQ).  The Russell 2000 Index declined 0.15 percent to 897 (NYSEARCA:IWM).  ETFs and Stocks Look to All Time Highs

The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced 1 cent (0.03 percent) to 21.84 as of 2:47 EST.

As of 2:35 EST, the S&P 500 Volatility Index – or VIX – declined 0.24 percent to 12.40 and the VIX Short-Term Futures ETN declined 2.58 percent to 22.70 (NYSEARCA:VXX).

The Euro STOXX 50 Index finished Wednesday’s session with a 0.31 percent decline to 2,708 – staying well above its 50-day moving average of 2,613.  After breaking above its resistance level of 2,700 on Monday, the STOXX 50 is once again struggling at that level, which has been a barrier since the beginning of the new year.  Its Relative Strength Index dipped to 62.74 (NYSEARCA:FEZ).  The FTSE 100 Index rose 0.25 percent to 6,194 (NYSEARCA:EWU).  The German DAX Index advanced 0.15 percent to 7,707 (NYSEARCA:EWG).  France’s CAC 40 Index fell 0.40 percent to 3,726 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index declined 0.28 percent to 8,608 (NYSEARCA:EWP).  Italy’s FTSE MIB Index dropped 0.69 percent to 17,594 (NYSEARCA:EWI).

As of 2:44 EST, the euro declined 0.06 percent against the dollar, trading at $1.3314 (NYSEARCA:FXE).

On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 49 cents (0.44 percent) to $112.91/bbl. (NYSEARCA:BNO, NYSEARCA:USO).

February Gold futures declined by $8.00 (0.47 percent) to $1,685.20 per ounce (NYSEARCA:GLD).

ETF Summary: 

SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  +0.61%  as investors respond enthusiastically to the day’s positive earnings reports and the passage of the temporary debt ceiling forbearance bill by Congress.

SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  -0.48%  following the release of the IMF World Economic Outlook Update, which called for ongoing economic contraction in the Eurozone through most of 2013.

Technology Select Sector SPDR ETF (NYSEARCA:XLK)  +1.19%  following the strong earnings reports from Google, AMD and IBM.  Why Earnings Are the Key for the Tech ETF XLK

iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  -0.04%  as advancing stock prices increase investors’ appetite for risk, making the safe haven of government bonds less attractive.  Learn More About iShares ETFs

SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  +0.19%  as positive earnings reports and the passage of the temporary debt ceiling forbearance bill by Congress enhance investor confidence.

Bottom line:  The tech sector led Wednesday’s relief rally, following Congressional passage of a bill which would delay the debt ceiling deadline, as Google, AMD and IBM reported strong quarterly earnings. 

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About John Nyaradi (http://www.wallstreetsectorselector.com) John Nyaradi is Publisher of Wall Street Sector Selector: Your Home For ETF Investing! John writes a weekly guest column, John Nyaradi’s ETF Edge for MarketWatch.com and his investment articles have appeared in many online publications including Trading Markets, Money Show, Yahoo Finance, Investors Insight, Fidelity, ETF Daily News, iStock Analyst , among many others. His book, Super Sectors: How to Outsmart the Market Using Sector Rotation and ETFs, is published by John Wiley and Sons and included among the Years Top Investment Books in the 2011 Stock Trader’s Almanac.