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: 161516

Reported Deaths: 3916
CountyCasesDeaths
DeSoto10708104
Hinds10519205
Harrison7555113
Jackson6708128
Rankin6130112
Lee547697
Madison5202110
Forrest400187
Jones382189
Lauderdale3727147
Lafayette344057
Washington3367108
Lamar307550
Lowndes261167
Oktibbeha259962
Bolivar250185
Panola240253
Neshoba2311122
Marshall227151
Leflore213991
Monroe212278
Pontotoc211231
Lincoln200867
Sunflower195555
Warren184958
Tate184051
Union176826
Copiah172540
Pike168360
Pearl River163870
Yazoo162940
Scott162730
Itawamba162637
Alcorn160428
Coahoma157844
Prentiss156732
Simpson155153
Adams148352
Grenada147145
Leake143344
Holmes135761
Covington135541
Tippah132530
George131725
Winston131726
Hancock130942
Wayne124924
Attala124735
Marion124248
Tishomingo114844
Chickasaw112132
Newton112129
Tallahatchie100727
Clay97127
Clarke95653
Jasper88523
Stone83115
Calhoun81513
Walthall79930
Montgomery78826
Carroll76315
Smith75716
Lawrence75214
Yalobusha74428
Noxubee74217
Perry69326
Tunica63519
Greene63022
Jefferson Davis60217
Amite59315
Claiborne59316
Humphreys55719
Quitman5117
Benton50518
Kemper49318
Webster47914
Wilkinson41322
Jefferson38712
Franklin3726
Choctaw3697
Sharkey33117
Issaquena1234
Unassigned00

Alabama Coronavirus Cases

Cases: 260359

Reported Deaths: 3776
CountyCasesDeaths
Jefferson34716513
Mobile20452370
Madison14215153
Tuscaloosa13755173
Montgomery12731243
Shelby1110278
Baldwin9341137
Lee801566
Morgan722855
Etowah692170
Calhoun6809121
Marshall675058
Houston552739
DeKalb512940
Cullman480246
St. Clair460357
Limestone455046
Lauderdale443357
Elmore432567
Walker3861112
Talladega381157
Jackson361623
Colbert341546
Blount315845
Autauga289342
Franklin262634
Coffee257717
Dale244454
Dallas234932
Chilton233641
Covington232434
Russell23153
Escambia206932
Tallapoosa190291
Chambers187551
Clarke164120
Pike163814
Marion148236
Winston144725
Lawrence137336
Pickens129720
Geneva12818
Marengo126724
Bibb125238
Barbour121429
Butler120042
Randolph107022
Cherokee106724
Hale101432
Fayette99916
Clay94825
Washington93921
Henry8996
Monroe84611
Lowndes82629
Cleburne80714
Macon77122
Crenshaw73330
Conecuh72914
Lamar7258
Bullock70919
Perry6987
Wilcox65518
Sumter59522
Greene44518
Choctaw43519
Coosa3824
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