Markets

Close Update: Stocks Stage Massive Comeback as Bargain Hunters Emerge

Stocks rallied in the final hours of trade on Thursday, turning a 600+ point loss in the Dow Jones Industrial Average into a 260 point gain as bargain hunters poured into risk assets late in the day. Tracking gains in the Dow, the Nasdaq also made an impressive comeback, emerging from correction territory with a 0.38% gain.

After Wednesday's historic rally, Wall Street's major averages were trading sharply lower at today's open, weighed down by slowing industrial profits in China, heightened US/China trade tensions amid Washington's plans to prevent US sales to ZTE and Huawei, and declining consumer confidence. Within the first hour of trade, the Dow had wiped out nearly half of Wednesday's gains. All S&P 500 sectors along with the entirety of the Dow Jones Industrial Average were in the red.

After orbiting the 50% Fibonacci retracement of Wednesday's 1,100+ point range late in the day, buying erupted into the last hour of trade as investors hunted for bargains in the beaten-down retail and energy sectors, lifting all but three S&P 500 sectors into the green and 28 of the 30 Dow stocks back into positive territory.

Thursday's main event was the Conference Board's consumer confidence index which declined to its lowest level since July as a result of stock market volatility, political turmoil and a simmering trade war with China. Additionally, the expectations index fell to a two-year low of 99.1 from November's 112.3.

Today's other data was weekly jobless claims which were down 1,000 to an as-expected 216,000.

As a result of the continued government shutdown, the only data scheduled for Friday is the Chicago purchasing managers index for December (est 62.4 from 66.4 prior), and the pending home sales index (est +1.5%).

US MARKETS

Dow Jones Industrial Average was up 260.37 points (+1.14%)

S&P 500 was up 21.13 points (+0.86%)

Nasdaq Composite Index was up 25.14 points (+0.38%)

GLOBAL SENTIMENT

FTSE 100 was down 1.52%

Nikkei 225 was up 3.88%

Hang Seng Index was down 0.67%

Shanghai China Composite Index was down 0.61%

UPSIDE MOVERS

(+) BTAI (+80.91%) FDA granted fast track designation to acute agitation treatment

(+) WATT (+53.71%) FTC approved Delight PSAP hearing device to be sold in US

(+) TCON (+17.34%) Reported top-line results from phase 1 study of TRC105 and Opdivo combination

(+) RGSE (+16.44%) Received first order for POWERHOUSE solar shingle system

DOWNSIDE MOVERS

(-) PME (-14.40%) Added 12 new fishing vessels

(-) LIVE (-9.14%) FY18 EPS and revenue increased from year ago

(-) SPPI (-6.53%) Submitted biologics license application for ROLONTIS

(-) ESV (-4.81%) Piper Jaffray note suggests shareholders might reject Rowan acquisition

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

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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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