Stock market trying to rebound after disastrous Christmas Eve
- Author: Eleanor Harrison Dec 29, 2018,
Dec 29, 2018, 0:53
On Wednesday, stocks rebounded from their recent losses with a dizzying climb that saw the Dow Jones Industrial Average take its biggest leap in history, zooming up nearly 1,100 points. Technology companies and retailers drove much of the market's rally. Amazon slid 4 percent to $1,412.48.
President Trump tried to create his own White House rally on Christmas Day when he suggested that the pullback in US stock markets is a good buying opportunity for investors.
Sales in the 2018 USA holiday shopping season rose 5.1 percent to over $850 billion, the strongest in six years, according to a Mastercard report.
Traders work at the New York Stock Exchange in New York, the United States, Dec. 26, 2018.
Following a troubling performance on Christmas Eve, on December 26, the Dow Jones recorded a 5 percent increase of more than 1000 points, avoiding a bear market. At its lowest, the Dow Jones Industrial Average was down 611 points.
The S&P ended Monday 19.8 percent below its all-time closing high, with roughly three-fourths of its stocks already in a bear market.
THANKS, SANTA: Big retailers were among the gainers.
BUYBACK BOOST: JD.com rose 1.5 percent to $20.02 after the Chinese e-commerce company's board authorized a stock buyback program of up to $1 billion. Microsoft rose 3 percent to $96.89. The swing was indicative of the volatility that has gripped the stock market throughout December.
The plunge in stocks on Monday stateside came after Mnuchin held calls with CEOs of major USA banks last weekend and issued a statement saying, "The banks all confirmed ample liquidity is available for lending to consumer and business markets". The rally in oil prices, and in stocks for that matter, could be due in part to a bounce from oversold conditions, with market participants wanting to buy the dip.
Even with recent gains, the Dow and S&P 500 are down around 9 per cent for the month.
Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt. Nordstrom picked up 4.2 percent to $46.06. The benchmark S&P 500 index also gained 5 percent and the technology heavy Nasdaq rose 5.8 percent. Brent crude, used to price global oils, gained 0.6 percent to $51.10 a barrel in London.
Risk Indicators: The VIX, shown as a bar chart, has come down from recent highs, and Treasury yields, as represented by a purple line showing the 10-year Treasury Index, have risen.
The dollar strengthened to 111.36 yen from 110.41 yen on Monday. Britain's FTSE 100 fell 1.5 percent.
In Europe, the benchmark Euro Stoxx 50 lost 1.1%. He notes that the S&P 500's net advance/decline line over the past 10 days hit minus 2,444, only the fifth time since 1990 it has hit minus 2330 or lower.
Gold edged up 0.6 percent to $1,281.10 an ounce and silver gained 1.2 percent to $15.31 an ounce. Shares fell in Taiwan, Singapore and Indonesia but rose in Thailand.
The Russell 2000 is up 39.73 points, or 3.1 percent.