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Dow roars back late in the day to finish 260 points higher

The Dow staged a late day comeback on Thursday, ending 260 points higher to close another volatile day on Wa...

Posted: Dec 28, 2018 9:58 AM
Updated: Dec 28, 2018 9:58 AM

The Dow staged a late day comeback on Thursday, ending 260 points higher to close another volatile day on Wall Street.

The Nasdaq closed narrowly higher, up 0.4% and the S&P 500 was up 0.8%.

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Thursday's action came a day after the Dow surged 1,086 points in its biggest daily point gain ever. The Dow was down as much as 611 points earlier in the day, but rallied in the final hour of trading for a swing of nearly 900 points.

The market has been gripped by those kind of wild swings this month. Investors are balancing an economy that is still strong by many measures, including record-low unemployment, with concerns about a slowing economy in China and other parts of the world, trade policy that's in flux, and recent moves by the Federal Reserve.

The see-saw trading session came after huge gains on Wednesday for a market having its worst December since the Great Depression. The Dow had its best point gain ever, and the S&P 500 and Nasdaq posted their best performances since March 2009.

The gains continued into a second day. But anyone watching stocks this month knows that sentiment can turn on a dime. The Dow has either gained or lost more than 250 points in eight of the past nine trading sessions.

"Human nature is very consistent — pain is the ultimate motivator for change, and a 20% market swoon in under three months has most tactical and historical indicators suggesting extreme pain," said Tony Dwyer, market analysts at Canaccord Genuity, in a note to analysts.

The firm said investors should expect more volatility and attributed the unease to "chaos in Washington," as well as the Federal Reserve's decision to stick to plans for gradual interest rate increases despite the recent stock turmoil. President Donald Trump, after ripping up trade policies aimed at stitching global economies together, has further unsettled markets by signaling he wanted to fire Federal Reserve Chairman Jerome Powell. Trump appointed Powell to the post last year but has since turned on him for raising rates.

The American economy remains strong, and most economists expect solid, if slower, growth in 2019. That's why some market analysts believe stocks are oversold. The S&P 500 is 8% lower this year, while unemployment is near a 50-year low and GDP grew at 3.4% in the third quarter.

But fear has taken over the stock market. Movements lower have precipitated another big selloff. "Obviously, oversold can become more oversold in a panic-based market environment," said Dwyer.

Markets that fall around 20% when the economy is strong typically bounce back. That's what happened in 1987 after Black Monday, 1998 after the Russian debt crisis and 2011 following the American credit rating downgrade. In 1987, the market soared 50% in the following two years. Stocks bounced back 20% within four months of their lows in 1998 and 2011.

Stocks could roar back to new highs next year as they did this summer. Or this could be a recession warning sign and a signal of worse news to come.

Stocks do a reversal, global stocks caught in the tumult

On Thursday, some of the market's big winners the prior day lost ground.

Tech, which led yesterday's rally, finished the day mixed. Amazon (AMZN) and Apple (AAPL) fell slightly, while Facebook (FB), Alphabet (GOOGL), and Netflix (NFLX) ticked up.

All nine sectors on the Dow finished in positive territory. 3M (MMM) and IBM (IBM) were the top performers on the Dow.

GE (GE) had its fifth-best day of the year Wednesday, but dropped 1.6% Thursday.

European markets fell sharply on their first day of trading since Monday. The FTSE was down 1.5% and Germany's DAX fell 2.4%.

The Hang Seng in Hong Kong and the Shanghai Composite both shed more than 0.6% after weak Chinese industrial data highlighted the difficulties facing the world's second largest economy.

But Japan's Nikkei jumped nearly 4% on Thursday, pulling the index out of the bear market it had entered just two days ago. Stocks also climbed more than 1% in Australia and Singapore.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 454989

Reported Deaths: 6163
CountyCasesDeaths
Hennepin943781502
Ramsey40624748
Dakota33540354
Anoka31357368
Washington20533237
Stearns18091190
St. Louis13970250
Scott1217799
Wright11791107
Olmsted1078075
Sherburne829669
Carver704439
Clay658884
Rice624274
Kandiyohi558072
Blue Earth548033
Crow Wing490478
Otter Tail464268
Chisago459538
Benton423688
Winona394548
Douglas379366
Nobles374647
Mower373729
Goodhue356863
Polk330760
McLeod328147
Beltrami315748
Morrison314545
Lyon305539
Becker288939
Itasca287343
Isanti285643
Carlton284043
Steele278910
Pine270315
Freeborn254123
Todd233730
Nicollet229438
Brown218034
Mille Lacs215645
Le Sueur214216
Cass210724
Meeker201333
Waseca193216
Wabasha17463
Martin171926
Roseau166417
Hubbard150738
Redwood141127
Houston140014
Dodge13934
Renville138440
Chippewa133032
Cottonwood129018
Fillmore12698
Wadena120818
Rock112012
Aitkin111433
Sibley10997
Faribault109416
Watonwan10688
Pennington101016
Kanabec99618
Pipestone96823
Yellow Medicine94916
Murray9117
Jackson87310
Swift84518
Pope7475
Stevens7078
Marshall70315
Clearwater68814
Lake66315
Lac qui Parle66116
Wilkin6339
Koochiching60610
Lincoln4912
Unassigned47369
Big Stone4693
Grant4388
Norman4258
Mahnomen4167
Kittson37420
Red Lake3204
Traverse2613
Lake of the Woods1961
Cook1160

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 311430

Reported Deaths: 4433
CountyCasesDeaths
Polk46841465
Linn18065279
Scott15872172
Black Hawk14090243
Woodbury13129181
Johnson1230052
Dubuque11625159
Pottawattamie9166115
Dallas908972
Story881038
Cerro Gordo473572
Webster472477
Sioux459757
Warren459339
Clinton458168
Marshall431162
Buena Vista396330
Muscatine396178
Des Moines395143
Plymouth353270
Wapello350798
Jasper332859
Lee324632
Marion309353
Jones274950
Henry267131
Carroll258434
Bremer250148
Crawford234724
Boone222917
Washington222933
Benton213650
Mahaska197937
Jackson195032
Tama190259
Dickinson188829
Kossuth180644
Delaware176236
Clay172521
Wright167124
Fayette166024
Hamilton162330
Buchanan162224
Winneshiek160820
Harrison158562
Hardin157931
Cedar155619
Clayton153849
Butler151724
Page147115
Floyd141636
Cherokee140127
Mills138517
Lyon137533
Poweshiek135224
Hancock131924
Allamakee130930
Iowa127722
Madison123910
Calhoun12349
Grundy122628
Winnebago122229
Jefferson122125
Mitchell116837
Louisa116230
Cass115243
Chickasaw113712
Appanoose112640
Sac112215
Union111623
Emmet111332
Humboldt106819
Shelby105527
Guthrie104424
Franklin103618
Unassigned10160
Palo Alto92411
Montgomery89124
Keokuk86326
Howard85919
Monroe82220
Clarke8129
Pocahontas78211
Ida76030
Davis70321
Greene6977
Adair69620
Monona68518
Lucas66710
Osceola64711
Worth6194
Taylor5999
Fremont5246
Van Buren50215
Decatur4974
Ringgold45111
Audubon4228
Wayne42021
Adams3003
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