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.

West Lafayette
Clear
69° wxIcon
Hi: 89° Lo: 66°
Feels Like: 69°
Kokomo
Clear
69° wxIcon
Hi: 86° Lo: 64°
Feels Like: 69°
Rensselaer
Clear
70° wxIcon
Hi: 85° Lo: 63°
Feels Like: 70°
Fowler
Clear
70° wxIcon
Hi: 86° Lo: 64°
Feels Like: 70°
Williamsport
Clear
72° wxIcon
Hi: 88° Lo: 66°
Feels Like: 72°
Crawfordsville
Clear
69° wxIcon
Hi: 88° Lo: 66°
Feels Like: 69°
Frankfort
Scattered Clouds
73° wxIcon
Hi: 88° Lo: 65°
Feels Like: 73°
Delphi
Clear
71° wxIcon
Hi: 87° Lo: 64°
Feels Like: 71°
Monticello
Clear
71° wxIcon
Hi: 86° Lo: 64°
Feels Like: 71°
Logansport
Clear
72° wxIcon
Hi: 86° Lo: 63°
Feels Like: 72°
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 50300

Reported Deaths: 2748
CountyConfirmedDeaths
Marion11920692
Lake5432248
Elkhart347058
Allen2902133
St. Joseph205169
Hamilton1665101
Cass16449
Hendricks1446100
Johnson1325118
Porter80238
Tippecanoe7599
Clark68144
Vanderburgh6816
Madison67264
LaPorte60527
Howard59458
Bartholomew59345
Kosciusko5704
Marshall5308
Noble50128
LaGrange4829
Jackson4783
Boone47444
Delaware46952
Hancock46036
Shelby43525
Floyd40444
Morgan33631
Monroe32928
Grant30926
Dubois2976
Henry29717
Montgomery29720
Clinton2893
White26810
Decatur25532
Dearborn25423
Lawrence25225
Vigo2478
Warrick24329
Harrison21722
Greene19332
Miami1922
Jennings17912
Putnam1728
DeKalb1674
Scott1639
Wayne1536
Daviess15017
Perry1459
Orange13723
Steuben1362
Jasper1332
Franklin1278
Ripley1277
Wabash1152
Carroll1132
Gibson1132
Fayette1057
Whitley1045
Newton10010
Starke983
Huntington932
Randolph794
Wells791
Jefferson782
Fulton731
Jay680
Washington681
Knox670
Clay665
Pulaski661
Rush613
Posey550
Owen521
Benton510
Spencer501
Adams491
Sullivan471
Brown431
Blackford402
Fountain352
Crawford330
Tipton321
Switzerland300
Martin240
Parke230
Ohio220
Vermillion200
Warren151
Union130
Pike110
Unassigned0193

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events