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 5:18 AM
Updated: Oct 26, 2018 5:18 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.

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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.

Minnesota Coronavirus Cases

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Confirmed Cases: 24190

Reported Deaths: 1036
CountyConfirmedDeaths
Hennepin8181606
Ramsey2863122
Stearns201413
Nobles15125
Anoka136370
Dakota126354
Washington61731
Olmsted60810
Kandiyohi4901
Rice4522
Clay42426
Scott4082
Todd3130
Wright3051
Mower3031
Sherburne2372
Carver2062
Benton1753
Steele1590
Blue Earth1380
Martin1295
St. Louis11814
Freeborn1150
Pine890
Nicollet8610
Unassigned8610
Winona7915
Carlton730
Watonwan710
Cottonwood700
Crow Wing682
Goodhue663
Otter Tail640
Chisago611
Polk612
Itasca5410
Dodge520
Chippewa491
Lyon490
Morrison450
Meeker450
Le Sueur441
Douglas410
Becker390
Jackson390
Murray390
McLeod340
Isanti320
Waseca260
Rock220
Mille Lacs191
Faribault180
Swift180
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Sibley160
Brown152
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Cass132
Norman130
Pipestone120
Kanabec111
Wilkin113
Marshall100
Pope90
Wadena90
Aitkin80
Koochiching70
Yellow Medicine60
Mahnomen61
Lincoln50
Renville50
Big Stone40
Grant40
Red Lake40
Redwood40
Clearwater30
Hubbard30
Traverse30
Lac qui Parle30
Roseau30
Houston20
Lake10
Kittson10
Stevens10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 19217

Reported Deaths: 531
CountyConfirmedDeaths
Polk4160125
Woodbury274034
Black Hawk173944
Linn94976
Dallas89220
Marshall89216
Buena Vista7350
Johnson6149
Wapello5589
Muscatine55641
Crawford5142
Tama40227
Scott35810
Dubuque34518
Louisa34311
Jasper26116
Pottawattamie2578
Sioux2190
Washington1888
Wright1670
Plymouth1292
Warren1260
Allamakee1204
Story1091
Mahaska9310
Poweshiek908
Henry711
Bremer696
Des Moines621
Clinton611
Boone610
Taylor540
Clarke530
Guthrie503
Cedar461
Benton411
Webster391
Monroe385
Shelby370
Jones360
Hamilton350
Clayton343
Iowa330
Buchanan330
Osceola330
Marion320
Cerro Gordo281
Cherokee280
Madison282
Fayette270
Lee250
Winneshiek240
Monona240
Jefferson230
Harrison220
Davis210
Lyon210
Dickinson200
Grundy200
Mills190
Floyd191
Sac180
Humboldt170
Lucas170
Hardin160
Hancock160
Delaware150
Keokuk150
Clay150
Appanoose153
Butler151
Emmet140
Ida140
Page130
Greene130
Franklin130
Cass120
Howard120
Audubon121
Jackson120
Winnebago110
Pocahontas110
Chickasaw100
Carroll90
Van Buren90
Adair90
Kossuth90
Union70
Adams70
Montgomery70
Palo Alto60
Unassigned60
Fremont40
Mitchell40
Ringgold40
Worth30
Calhoun20
Wayne10
Decatur10
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