Stock market rebounds: Dow rises 401 points

The Wall Street roller coaster started to climb again.The Dow closed up 401 points, or 1.6%, on Thurs...

Posted: Oct 26, 2018 6:18 AM
Updated: Oct 26, 2018 6:18 AM

The Wall Street roller coaster started to climb again.

The Dow closed up 401 points, or 1.6%, on Thursday. The broader S&P 500 gained 1.9% and the Nasdaq surged 3%, its best day since March. Stocks bounced back after a sharp drop Wednesday that sent the Nasdaq into a correction.

Banking, finance and investments

Business, economy and trade

Economic indicators

Economy and economic indicators

Financial markets and investing

Securities trading

Stock indexes

Stock markets

Wall Street

Company activities and management

Company earnings

Financial performance and reports

Financial results

The market has slumped badly in the past several weeks, but it hasn't fallen in a straight line. Volatility is spiking, and huge sell-offs have been interspersed with big gains, including October 16's 548-point jump for the Dow and October 12's 287-point gain.

Still, the back and forth has been heaviest in one direction: down. The S&P 500 was less than a percentage point drop away from entering a correction Wednesday. Investors had been looking for strong corporate earnings to drag stocks out of the doldrums, but earnings have disappointed this quarter. That gave already nervous investors more anxiety.

"No matter how good the report or how positive the guidance, investors are looking for the exits," said Justin Walters, cofounder of Bespoke Investment Group, in a note to investors Thursday. "Companies that are reporting earnings this season are getting slaughtered."

The average stock has fallen 2% the day after reporting earnings this quarter -- the worst performance of the 21st century, according to Walters.

Concerns about rising rates and the trade war have spooked the markets this month. The S&P 500 has fallen 7% in October. And the Nasdaq is down 9%, on track for its worst month since November 2008. Only 13% of stocks are trading above their 50-day moving averages, evidence that Walters believes suggests stocks have been oversold.

Investors agreed on Thursday at least. They saw a buying opportunity, particularly in tech.

All of the FAANG stocks were up more than 2%. Amazon led the pack, up 7%.

Twitter (TWTR) spiked 16% after reporting higher profit and more engaged customers despite losing users overall. Netflix (NFLX) rebounded after plummeting 9% Wednesday. Microsoft (MSFT) rose about 6% after reporting strong earnings the night before.

Tesla (TSLA) was up 9%. The company reported by far its most profitable quarter in history late Wednesday, lessening concerns of a looming cash crunch that had been weighing on shares.

Tech will be tested again later on Thursday: Alphabet, Amazon (AMZN), Snap (SNAP) and Intel (INTC) all will post their quarterly financial report after the bell.

Southwest (LUV) fell 9% after reporting higher oil prices would pinch profit in the future. But American Airlines (AAL) rose 7% following strong earnings Thursday morning.

The Dow tumbled more than 600 points on Wednesday, and the Nasdaq lost 4%, its worst one-day percentage drop in more than seven years.

Terre Haute
Clear
51° wxIcon
Hi: 70° Lo: 44°
Feels Like: 51°
Robinson
Clear
49° wxIcon
Hi: 70° Lo: 43°
Feels Like: 48°
Indianapolis
Clear
57° wxIcon
Hi: 70° Lo: 47°
Feels Like: 57°
Rockville
Clear
49° wxIcon
Hi: 69° Lo: 44°
Feels Like: 49°
Casey
Clear
57° wxIcon
Hi: 68° Lo: 43°
Feels Like: 57°
Brazil
Clear
51° wxIcon
Hi: 69° Lo: 43°
Feels Like: 51°
Marshall
Clear
51° wxIcon
Hi: 70° Lo: 41°
Feels Like: 51°
Clear, Bright Moon
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Cases: 1671275

Reported Deaths: 27903
CountyCasesDeaths
Cook63319811182
DuPage1078031375
Will910281124
Lake797931082
Kane68211868
Winnebago40918559
Madison40014592
St. Clair36230595
McHenry34584326
Champaign26931196
Peoria26845368
Sangamon25682284
McLean22947217
Tazewell20601330
Rock Island18783360
Kankakee17848248
Kendall16162113
Macon15259250
LaSalle14983285
Vermilion14303199
Adams13097152
DeKalb12114133
Williamson12027174
Whiteside8265183
Jackson808394
Boone790483
Coles7857122
Ogle754587
Grundy735386
Franklin7317115
Knox7244169
Clinton7113102
Macoupin6927104
Marion6907143
Henry661677
Effingham658099
Jefferson6523143
Livingston596098
Stephenson580992
Woodford575292
Randolph553799
Christian531882
Fulton525875
Monroe5243103
Morgan505299
Logan494274
Montgomery489881
Lee478060
Bureau442190
Saline433169
Perry432375
Fayette429564
Iroquois419977
McDonough373460
Shelby345848
Jersey335153
Crawford331330
Lawrence330833
Douglas326237
Union305848
Wayne301762
White279333
Richland279057
Hancock273035
Cass265330
Clark265240
Pike263358
Clay258254
Edgar256749
Bond255625
Warren243665
Ford242859
Carroll236038
Moultrie231433
Johnson225131
Wabash217019
Jo Daviess215129
Massac214148
Mason212752
Washington211628
De Witt204930
Greene204840
Mercer203435
Piatt200914
Cumberland189526
Menard171913
Jasper161021
Marshall141221
Hamilton133622
Schuyler107010
Brown106410
Pulaski103811
Edwards103418
Stark81228
Gallatin7878
Alexander71712
Scott7136
Henderson69814
Calhoun6902
Hardin59816
Putnam5614
Pope5476
Unassigned1632433
Out of IL70

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Cases: 1000163

Reported Deaths: 16309
CountyCasesDeaths
Marion1347632106
Lake660041156
Allen57441793
Hamilton46100461
St. Joseph44109607
Elkhart35696507
Vanderburgh32087477
Tippecanoe27796257
Johnson24902443
Hendricks23738354
Porter22802362
Madison18614404
Clark18424250
Vigo17347301
Monroe15180197
LaPorte15046250
Delaware14984259
Howard14626287
Kosciusko12217147
Hancock11630175
Bartholomew11505179
Warrick11255189
Floyd11013214
Wayne10897250
Grant9964218
Morgan9404176
Boone8863116
Dubois8227130
Dearborn817093
Henry8139151
Noble7984106
Marshall7838134
Cass7499119
Lawrence7403170
Shelby7138114
Jackson694088
Gibson6533113
Harrison644491
Huntington633999
Knox6273106
DeKalb626397
Montgomery6208109
Miami589797
Putnam575377
Clinton570271
Whitley560455
Steuben554675
Wabash5279101
Jasper524475
Jefferson506996
Ripley495685
Adams476073
Daviess4616113
Scott435869
Greene422096
Wells420987
Clay420260
White415962
Decatur4133101
Fayette404286
Jennings385160
Posey375343
LaGrange353978
Washington353249
Randolph341999
Spencer337342
Fountain332558
Sullivan326752
Starke313369
Owen312070
Fulton306567
Orange291762
Jay280445
Perry264752
Franklin264042
Carroll259132
Rush258832
Vermillion255454
Parke230026
Pike227943
Tipton226659
Blackford190540
Pulaski181855
Crawford158623
Newton156048
Benton150217
Brown144547
Martin137419
Switzerland134211
Warren120516
Union106815
Ohio84112
Unassigned0538