Dow has single biggest one day gain, soars 1000+ points

CNN's Alison Kosik reports.

Posted: Dec 28, 2018 6:30 AM
Updated: Dec 28, 2018 6:30 AM

Stock markets staged a miraculous comeback Wednesday following their worst-ever Christmas Eve. The Dow posted its biggest daily point gain ever.

The Dow rose 1,086 points, gaining 5%. The S&P 500 also soared 5%, and the Nasdaq was up 5.8%, pulling out of bear market territory.

The day marked the biggest percentage gain for all three indices since March 2009.

"Investors went bargain shopping the day after Christmas, where stocks just got too cheap relative to earnings, future earnings, any reasonable assessment of earnings," said Chris Rupkey, managing director of MUFG. "The coast is clear, back up the truck, investors are saying enough already, the world is not ending."

Stocks rose higher despite virtually no news — which may have been a catalyst in its own right. Thin trading and a lack of big news often send stocks higher in the last week of December.

President Donald Trump did not tweet until late in market hours Wednesday. Shortly after 2 pm ET, the White House announced Trump and the first lady traveled to Iraq on Wednesday. Recently, Trump has unsettled markets by signaling the potential firing of Federal Reserve Chairman Jerome Powell and a trade war escalation.

All but one stock in the S&P 500 rose Wednesday. Newmont Mining Corp (NEM), which fell 0.1%, was the sole loser. Newmont was the S&P 500's biggest gainer on Monday after gold prices rose.

Tech stocks led the rally. Amazon soared 9.5%, Facebook (FB), Netflix (NFLX) rose 8%, Apple (AAPL) jumped 7% and Alphabet (GOOGL) was up 6%.

Energy stocks were close behind, led by Marathon Oil (MRO), which surged 11.9% Wednesday. Hess (HES) was up 11%.

Consumer product stocks also rose sharply. Kohl's (KSS) was up 10.3% and Nike (NKE) rose 7.2%. Mastercard reported that the American retail industry had its best holiday season sales in six years. Amazon (AMZN) reported that it had a robust holiday period. That suggests rising wages and lower gas prices are helping boost consumer spending — the biggest contributor in America's GDP.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day. And Ford (F) stock, which hit a nine-year low earlier in the day, ended slightly higher.

One good day isn't a trend

Wednesday was a respite from a very rough month for investors.

Even after Wednesday's rally, the S&P 500 remains close to entering a bear market, which would end the longest bull market in history. This month is still on pace for the worst December since 1931, according to S&P Global Indices.

A partial government shutdown, Treasury Secretary Steven Mnuchin's questions about banks' health and signals that President Donald Trump could fire Federal Reserve Chairman Jerome Powell upset markets on Monday, sending the Dow down 653 points.

After markets tanked on Christmas Eve, Trump said Tuesday that he remains confident in Mnuchin, but he renewed his criticism of the Fed, accusing it of hiking rates too fast.

Those doubts come of top of worries about how sharply the US economy might lose steam next year.

The only certain thing about the market this month is uncertainty. The slightest bit of bad news can turn a rally into a rout.

Asian stocks rattled

European markets were closed Wednesday. In Asia, Japan's Nikkei swung between gains and losses before closing nearly 1% higher. The shaky trading followed a 5% plunge on Christmas Day that dragged the Japanese index into a bear market. In China, the Shanghai Composite shed 0.3% on Wednesday.

Markets have been rattled in recent days by fears of slowing economic growth, exacerbated by some unsettling moves from Washington.

The turmoil in Washington is making traders in other countries fret about the stewardship of the world's biggest economy.

Global investors have a laundry list of worries, including China's slowing economy, the Trump administration's trade war with China and the unpredictability surrounding Brexit.

"There's a lot of uncertainty, and that's one of the biggest things that the market doesn't like," Andrew Sullivan, a Hong Kong-based market economist, told CNN.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 448268

Reported Deaths: 6013
CountyCasesDeaths
Hennepin931011480
Ramsey40016739
Dakota33072340
Anoka30999364
Washington20164228
Stearns17871187
St. Louis13690241
Scott1195496
Wright11614104
Olmsted1048475
Sherburne821365
Carver694836
Clay653280
Rice606868
Kandiyohi554371
Blue Earth541033
Crow Wing482774
Otter Tail457167
Chisago452732
Benton420186
Winona389646
Douglas374166
Nobles370846
Mower365529
Goodhue347958
Polk328658
McLeod325345
Morrison311744
Beltrami310347
Lyon302236
Becker284939
Itasca284543
Isanti282841
Carlton280043
Steele27379
Pine266713
Freeborn245321
Todd231730
Nicollet224636
Brown215134
Mille Lacs214246
Le Sueur210015
Cass207623
Meeker199733
Waseca189316
Wabasha17083
Martin170026
Roseau165416
Hubbard149338
Redwood139727
Renville137539
Houston135913
Dodge13474
Chippewa131332
Cottonwood127218
Fillmore12355
Wadena120116
Rock110212
Sibley10857
Aitkin108433
Watonwan10668
Faribault105916
Pennington99215
Kanabec97818
Pipestone94423
Yellow Medicine93714
Murray8815
Jackson85610
Swift83418
Pope7385
Marshall70215
Stevens7018
Clearwater68514
Lac qui Parle65716
Lake63715
Wilkin6259
Koochiching59610
Lincoln4841
Big Stone4573
Unassigned43768
Grant4298
Norman4248
Mahnomen4107
Kittson37219
Red Lake3174
Traverse2503
Lake of the Woods1951
Cook1140

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 305606

Reported Deaths: 4278
CountyCasesDeaths
Polk45754449
Linn17795275
Scott15444163
Black Hawk13773236
Woodbury13016175
Johnson1211749
Dubuque11387150
Pottawattamie8992112
Dallas888671
Story869434
Webster469771
Cerro Gordo466768
Sioux455157
Clinton450361
Warren443938
Marshall427761
Buena Vista393429
Muscatine390477
Des Moines381841
Plymouth350368
Wapello344198
Jasper321959
Lee317130
Marion304952
Jones271349
Henry264330
Carroll255434
Bremer245048
Crawford231022
Boone218417
Washington217632
Benton209444
Mahaska193136
Jackson192031
Tama187757
Dickinson186026
Delaware173736
Kossuth173644
Clay168820
Wright164824
Fayette162322
Hamilton160029
Buchanan159923
Winneshiek155719
Harrison155162
Hardin154729
Cedar153219
Clayton151448
Butler148224
Page144715
Floyd139636
Cherokee139027
Mills136416
Lyon135332
Poweshiek132724
Hancock130224
Allamakee127928
Iowa125422
Calhoun12279
Grundy121226
Jefferson120724
Madison12039
Winnebago119429
Mitchell116234
Louisa115030
Cass113341
Chickasaw111612
Sac111215
Emmet110831
Appanoose110538
Union108822
Humboldt105519
Guthrie103024
Shelby102926
Franklin102418
Unassigned9310
Palo Alto9079
Montgomery85622
Keokuk85026
Howard84219
Monroe81218
Clarke7957
Pocahontas77611
Ida74630
Greene6927
Davis69121
Adair68820
Lucas6508
Monona64016
Osceola6409
Worth6113
Taylor5949
Fremont5126
Van Buren49712
Decatur4894
Ringgold4389
Audubon4158
Wayne41421
Adams2963
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