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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 315026

Reported Deaths: 7257
CountyCasesDeaths
DeSoto21684260
Hinds20385416
Harrison17973309
Rankin13650278
Jackson13456246
Madison10130217
Lee9988174
Jones8388163
Forrest7701152
Lauderdale7198240
Lowndes6411148
Lamar624686
Lafayette6210119
Washington5342134
Bolivar4804132
Oktibbeha463298
Panola4601107
Pearl River4524146
Marshall4454103
Warren4397121
Pontotoc421172
Monroe4120133
Union411276
Neshoba4033176
Lincoln3972110
Hancock380287
Leflore3500125
Sunflower336490
Tate335484
Pike3330105
Scott316773
Alcorn313670
Yazoo311870
Itawamba300877
Copiah297865
Coahoma295979
Simpson295388
Tippah289068
Adams288682
Prentiss280360
Marion269680
Leake268673
Wayne262941
Grenada261987
Covington260381
George249448
Newton246963
Winston227881
Tishomingo227567
Jasper221148
Attala214473
Chickasaw208457
Holmes189174
Clay185654
Stone183033
Tallahatchie179041
Clarke178180
Calhoun170932
Yalobusha164838
Smith162734
Walthall134345
Greene130633
Lawrence129324
Montgomery127242
Noxubee126734
Perry126338
Amite123142
Carroll121929
Webster114532
Jefferson Davis107233
Tunica105726
Claiborne102530
Benton100125
Humphreys96733
Kemper95828
Franklin83923
Quitman81116
Choctaw76418
Wilkinson67631
Jefferson65728
Sharkey50217
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 540267

Reported Deaths: 11038
CountyCasesDeaths
Jefferson798791529
Mobile41295809
Madison35175506
Tuscaloosa25932455
Shelby25309249
Montgomery24736593
Baldwin21422310
Lee15997172
Calhoun14577319
Morgan14431280
Etowah13927353
Marshall12280225
Houston10650282
Elmore10158206
Limestone10075151
St. Clair9955245
Cullman9773194
Lauderdale9465243
DeKalb8866188
Talladega8344176
Walker7261278
Autauga7010108
Jackson6840112
Blount6776139
Colbert6322135
Coffee5583118
Dale4878113
Russell445938
Chilton4383113
Franklin426382
Covington4138118
Tallapoosa4044153
Escambia395177
Chambers3598123
Dallas3569153
Clarke351561
Marion3140101
Pike312077
Lawrence303698
Winston275873
Bibb264864
Geneva254178
Marengo249865
Pickens234862
Barbour232056
Hale224078
Butler219069
Fayette213162
Henry190043
Cherokee184845
Randolph182542
Monroe178241
Washington167839
Macon161350
Clay157257
Crenshaw153657
Cleburne149641
Lamar143336
Lowndes140753
Wilcox127430
Bullock123342
Conecuh110829
Coosa109228
Perry107826
Sumter105032
Greene92634
Choctaw61024
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Columbus
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Oxford
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Your Tuesday comes with more clouds and rain chances, though a few areas of sunshine and warmth are possible at times in the afternoon. Though all areas could see some rain today, the majority of this rainfall will be found in our western counties.
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