Published: Sat, October 27, 2018
Markets | By Otis Pena

Wall Street rebounds after rout, Nasdaq +3.0%

Wall Street rebounds after rout, Nasdaq +3.0%

Thursday's opening tumble follows a fall by U.S. stocks overnight, which confirmed a correction for the Nasdaq and erased the Dow and S&P 500's gains for the year amid disappointing earnings, economic growth concerns, a spat between Italy and the European Union and the killing of a Saudi journalist.

The benchmark S&P/ASX200 index dropped 111.4 points, or 1.91 per cent, to 5717.6 at 1030 AEDT at the start of likely the fifth session of losses, with the market having already hit a new six-month low on Wednesday on plunging energy and materials stocks. Bond prices continued to rise, sending yields lower.

The S&P 500 index fell 43 points, or 1.6 percent, to 2,661.

The latest selling came as investors grew unsettled over slowing economic growth in China and increased signs that President Donald Trump's aggressive trade policies are beginning to weigh on corporate earnings.

But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.6 per cent and 4.2 per cent, respectively.

"That's the story, it's not the current quarter results, but the commentary going forward, the impact of tariffs and what that means in terms of costs", said Willie Delwiche, an investment strategist at Baird.

Just 57 percent of S&P 500 companies have topped revenue forecasts in the third quarter, down from 72 percent in the second quarter.

In the month of October alone, the Dow has fallen by 7.1 percent, S&P by 8.9 percent and Nasdaq by 11.7 percent.

The Nasdaq rose 3 percent, a day after it confirmed a correction and registered its biggest decline since 2011.

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Although the exact cause of the blaze is under investigation, firefighters believe the blowtorch was to blame. More than two dozen firefighters responded and put out the fire - which damaged the second-story attic.

The Russell 2000 index gained 30 points, or 2.1 percent, to 1,499.

Stocks are falling sharply on Wall Street again, erasing most of their big gains from the day before.

The S&P 500 had index plunged 9.2 per cent since October 3 as investors anxious about climbing interest rates and the effects of the US-China trade dispute.

About 24 percent of the companies in the S&P 500 had reported third-quarter results as of Wednesday.

The share price declines also came after data on United States home sales fell to their slowest pace in almost two years, and a Federal Reserve report showed firms nationwide are anxious about the rising hit from tariffs and widespread labor shortages. Wholesale gasoline slipped 0.8 percent to $1.82 a gallon.

Gold rose 0.1 percent to $1,232.40 an ounce. Brent crude, the benchmark for worldwide oil prices, rose 0.5 percent to $76.56 a barrel in London.

CURRENCIES: The dollar fell to 112.17 yen from 112.43 yen.

The Dow was up 471 points, or 1.9 percent, to 25,050. The euro rose to $1.1467 from $1.1466. The plan expands its targeted deficit to 2.4 percent of GDP next year, three times more than promised by the previous government. Britain's FTSE 100 inched up 0.1 percent.

In Asia, Japan's Nikkei 225 index gave up 2.7 percent and the Kospi in South Korea tumbled 2.6 percent.

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