Markets

Close Update: Dow Surrenders Gains But Ends Tumultuous Week Higher

A late day swoon on Wall Street left the Dow Jones Industrial Average and S&P 500 modestly lower as Wall Street's inability to match Thursday's massive rebound, coupled with recent volatility and holiday-thinned conditions encouraged investors to book profits into the final hour of trade. Led by losses in energy and industrial stocks, the Dow reversed a 200+ point gain at the open to close 76 points lower.

After a head-spinning week that saw the Dow tossed in a 1,600 point range, blue chips closed higher for the first time in four weeks with a 2.7% gain. The S&P 500 was up 2.6% while the Nasdaq took the lead with a 4% gain from last Friday's close.

Thursday's massive reversal extended into overseas trading with stocks across Asia and Europe capitalizing on the Dow's 860 point rally into yesterday's close. After a strong open, Wall Street's major averages straddled the flatline for the bulk of the afternoon as participants waited for another late-day assist from pension fund repositioning. When it looked like funds were noticeably absent, investors sold into the close, turning a 240 point gain into a 76 point loss.

The late sell-off in equities underpinned Treasury securities with the 10-year yield dropping 3 basis points. Gold gained ground and closed higher for a second day while silver made the most of the flight-to-safety and was higher for a fourth consecutive day.

Data released this morning included a decline in the Chicago purchasing managers index to 65.4 from 66.4 in November, above the estimated 62.4. Pending home sales fell 0.7% in November, missed expectations for a 1.5% gain. Year-over-year, pending sales were down 7.7%, the biggest drop in four years.

US MARKETS

Dow Jones Industrial Average was down 76.42 points (-0.33%)

S&P 500 was down 3.09 points (-0.12%)

Nasdaq Composite Index was up 5.03 points (+0.08%)

GLOBAL SENTIMENT

FTSE 100 was up 2.27%

Nikkei 225 was down 0.31%

Hang Seng Index was up 0.10%

Shanghai China Composite Index was up 0.44%

UPSIDE MOVERS

(+) VTVT (+120.39%) Exercises right to compel MacAndrews & Forbes Group to buy 0.8 million shares of the company at a price of $1.84 per share

(+) WFT (+25.44%) Offers to exchange up to $600 million of 9.875% senior notes due 2025

(+) OPK (+24.90%) To pay fines to settle SEC action

DOWNSIDE MOVERS

(-) RSLS (-24.06%) Notified of Nasdaq delisting

(-) OBLN (-13.79%) Signs two financing deals totalling $30 million

(-) SIR (-1.71%) Completed distribution of 45 million common shares of Industrial Logistics Properties Trust

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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