Dow stages huge comeback after briefly plunging below 24,000

The erratic stock market staged a dramatic recovery on Monday from yet another plunge.The Dow closed ...

Posted: Dec 11, 2018 7:35 AM
Updated: Dec 11, 2018 7:35 AM

The erratic stock market staged a dramatic recovery on Monday from yet another plunge.

The Dow closed 34 points higher, recovering from a 500-point slide that briefly knocked the index below 24,000 for the first time since late June. The S&P 500 gained 0.2%, while the Nasdaq jumped 0.7%.

Banking, finance and investments

Brexit

Business, economy and trade

Continents and regions

Europe

European Union

Financial markets and investing

Government organizations - Intl

Northern Europe

Securities trading

Stock markets

United Kingdom

Apple Inc

Asia

China

Companies

East Asia

Economic indicators

Economy and economic indicators

Stock indexes

Economic conditions

Economic decline

Recession

Business and industry sectors

Consumer electronics

Consumer products

Electronics

Mobile and cellular telephones

Mobile technology

Smartphones

Technology

Apple (AAPL) led the turnaround. The iPhone maker erased a selloff caused by a Chinese court deciding to ban sales of most iPhone models by granting an injunction requested by Qualcomm. Apple announced midday Monday that it would appeal the court's decision, and the company insisted that all models of the iPhone continue to be available to Chinese customers.

"Anytime you get an upside reversal that's a bullish sign, at least in the very near term," said Justin Walters, co-founder at Bespoke Investment Group. "But today's rally doesn't mean we've broken out of any longer-term downtrend."

US stocks hit session lows on Monday morning after Prime Minister Theresa May said she would delay a crucial vote on her Brexit deal. The British pound shed 1.3% against the US dollar.

"Any news that isn't good is immediately treated as terrible," said Mark Luschini, chief investment strategist at Janney Capital.

The Brexit chaos reinforces one of Wall Street's biggest fears: slowing global growth. Germany and Japan are already in economic contraction, while China's economy has suffered from a wave of tariffs. A messy divorce between the UK and European Union is the last thing the global economy needs.

FTSE 100 closed nearly 1% lower. The FTSE 250, which has more companies focused on doing business in the UK, dropped almost 2%.

"The big worry is economic growth," said David Joy, chief market strategist at Ameriprise Financial. "Nobody knows what to make of the trade situation."

The CNN Business Fear & Greed Index, a gauge of market sentiment, is flashing "extreme fear."

The market is "starting to price in a recession-like scenario," JPMorgan Chase chief economist Bruce Kasman wrote in a report published on Friday.

JPMorgan estimates that the odds of a recession, based on a combination of economic data and market variables, has climbed to 36% from 25% at the end of September.

"We do not see as high a risk of recession as financial markets imply," Kasman said.

Concerns about growth and fluctuations in the bond market have slammed bank stocks. The S&P 500 banking sector led the way lower on Monday, building on last week's steep losses. Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) lost more than 2% apiece.

Investors are worried about how an economic slowdown would impact demand for loans. Banks are also hurt by the flattening bond yield, a central fear in recent days. The narrowing gap between long and short term bond yields makes it harder for banks to make money on the difference between what they pay out in interest rates and lend at. A yield curve inversion has been a reliable indicator of recessions in the past.

"The message that financials are sending about growth is more ominous," said Joy. "Banks are a proxy for the outlook for growth. And the outlook is diminishing."

Energy stocks like ConocoPhillips (COP) and Pioneer Natural Resources (PXD) were under pressure from another round of selling in the oil patch. US oil prices plunged 3% to $51 a barrel, reflecting lingering concern about excess supply despite Friday's agreement by OPEC and Russia to cut output.

CNN Business' Charles Riley contributed to this report.

Indiana Coronavirus Cases

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

Confirmed Cases: 34211

Reported Deaths: 2125
CountyConfirmedDeaths
Marion9761576
Lake3573186
Allen160069
Cass15877
St. Joseph126634
Elkhart126228
Hendricks116671
Hamilton115493
Johnson1097108
Madison58659
Porter53428
Bartholomew50834
Clark49741
LaPorte43023
Howard40428
Tippecanoe3933
Delaware38536
Jackson3821
Shelby37122
Hancock33127
Floyd31839
Boone31635
Morgan27824
Vanderburgh2662
Montgomery23817
White2338
Noble22821
Clinton2271
Decatur22431
Grant21022
Dubois1993
Harrison19422
Henry17211
Greene16924
Vigo1688
Dearborn16821
Monroe16712
Warrick16628
Lawrence15924
Miami1401
Putnam1367
Jennings1304
Kosciusko1271
Orange12622
Scott1193
Franklin1108
Ripley1086
Marshall1021
Carroll932
Daviess8516
Steuben832
Wayne785
Fayette777
Newton7710
Wabash772
LaGrange762
Jasper661
Washington521
Clay511
Jay500
Fulton491
Randolph473
Rush462
Pulaski460
Jefferson451
Whitley413
Starke393
DeKalb371
Sullivan351
Owen341
Brown331
Perry320
Wells310
Benton300
Knox280
Huntington272
Tipton251
Blackford252
Crawford240
Fountain212
Switzerland200
Spencer201
Parke170
Adams171
Posey160
Gibson152
Ohio130
Warren121
Martin110
Vermillion100
Union90
Pike60
Unassigned0167

Illinois Coronavirus Cases

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

Confirmed Cases: 118917

Reported Deaths: 5330
CountyConfirmedDeaths
Cook771193603
Lake8238288
DuPage7620368
Kane6259176
Will5510273
Winnebago220955
McHenry153972
St. Clair112180
Kankakee90045
Kendall77819
Rock Island65124
Champaign6277
Madison57259
Boone44117
DeKalb3994
Sangamon34829
Jackson28210
Randolph2694
Peoria2218
McLean21813
Ogle2033
Stephenson2012
Macon19419
Clinton18617
Union15510
LaSalle15013
Whiteside13912
Iroquois1314
Coles12615
Out of IL1181
Warren1150
Jefferson10116
Grundy982
Knox980
Monroe9511
McDonough8711
Lee811
Unassigned800
Cass730
Tazewell725
Henry690
Williamson661
Pulaski560
Marion500
Jasper457
Macoupin452
Adams441
Perry420
Montgomery391
Vermilion391
Morgan361
Christian354
Livingston342
Jo Daviess320
Douglas270
Fayette203
Ford201
Jersey201
Menard200
Woodford192
Mason180
Washington180
Hancock170
Mercer170
Carroll162
Shelby161
Bureau151
Schuyler130
Bond121
Franklin120
Clark110
Crawford110
Fulton110
Moultrie110
Piatt110
Brown100
Cumberland100
Logan100
Wayne91
Alexander80
Henderson80
Johnson80
Effingham71
Massac70
Saline70
Greene50
Marshall50
De Witt40
Lawrence40
Richland30
Stark30
Clay20
Edwards20
Gallatin20
Hamilton20
Wabash20
White20
Calhoun10
Edgar10
Hardin10
Pike10
Pope10
Putnam10
Terre Haute
Clear
65° wxIcon
Hi: 74° Lo: 50°
Feels Like: 65°
Robinson
Clear
66° wxIcon
Hi: 73° Lo: 50°
Feels Like: 66°
Indianapolis
Clear
63° wxIcon
Hi: 71° Lo: 47°
Feels Like: 63°
Rockville
Clear
62° wxIcon
Hi: 72° Lo: 50°
Feels Like: 62°
Casey
Clear
65° wxIcon
Hi: 74° Lo: 52°
Feels Like: 65°
Brazil
Clear
65° wxIcon
Hi: 73° Lo: 50°
Feels Like: 65°
Marshall
Clear
65° wxIcon
Hi: 73° Lo: 50°
Feels Like: 65°
A great Sunday on tap!
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events