Markets

Closing Update: Stocks Crushed by Weak Data, But Stage Late Rebound

Wall Street suffered yet another bruising on Wednesday but finished well off the day's worst levels, with the small cap-focused Russell 2000, the market's laggard this year, pacing Wednesday's rebound. Still, stocks suffered their deepest intraday sell-off in close to three years, after worse-than-expected retail sales data, lingering worries about the global economy, and fears of an Ebola pandemic ignited intense selling in equities. Global economic distrust lured investors to the relative safe haven of government bonds, driving the yield on the 10-year note below 2.00% for the first time in 18 months.

Today's selling kicked off with a 0.3% drop in retail sales and 0.1% contraction in wholesale prices for September, indicating slower growth with anemic price pressures. Global equities were already against the ropes as a result of China's inflation data, weak Japanese production data and a scuttled multi-billion deal between Shire ( SHPG ) and AbbVie ( ABBV ) after the U.S. government squashed tax inversion deals. The result left EU-zone bond yields at historic lows and equities as much as 4% lower.

But as the day wore on, bargain-hunting resurfaced and fueled a rebound that shaved most of today's losses. The Dow Jones Industrial, which was down by as much as 460 points, closed only 153 points lower. But the best performer was the Russell 2000 which closed on the plus side for the third straight day after being down 2%.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was down 173.45 (-1.1%) at 16,141.74

S&P 500 was down 15.21 (-0.8%) at 1,862.49

Nasdaq Composite Index was down 11.85 (-0.3%) at 4,215.32

GLOBAL SENTIMENT

FTSE 100 was down 2.83%

Nikkei 225 was up 0.92%

Hang Seng Index was up 0.40%

Shanghai China Composite Index was up 0.60%

UPSIDE MOVERS

(+) LAKE , APT , VSR Companies involved in the treatment and containment of Ebola gain on second infected Dallas hospital employee continue to advance

(+) PPHM Issued positive update on Ebola treatment Bavituximab

(+) PENX Offer from Ingredion for $340 million

DOWNSIDE MOVERS:

(-) SHPG AbbVie ( ABBV ) reconsidering takeover after U.S. government changes tax laws related to tax inversion

(-) WTSL Pays charge from reduced workforce, expects Q3 loss

(-) KEY Q3 results miss estimates

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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