Dow Gains 111 Points as It Battles to Avoid a Bear Market
Illustration by Michael Haddad
6:53 a.m. The Dow Jones Industrial Average is trying to bounce back from its worst Christmas Eve losses on record -and it will need to succeed if it wants to avoid a bear market.
S&P 500 futures have gained 0.6%, while Dow Jones Industrial Average futures have risen 111 points, or 0.5%. Nasdaq Composite futures have advanced 0.5%. The Nasdaq is already in a bear market, while the Dow is 1.2 percentage points away, and the S&P 500 is just 0.2 percentage point away.
There is little in the way of financial or economic news to lift the market On Wednesday, however. No earnings. No market-moving data. Little analyst research. Instead, it will have to wrestle with continued headlines about the government shutdown, President Donald Trump's anger with the Federal Reserve, and the possibility of impeachment.
"News flows were mostly quiet over the last 48 hours however President Trump did make supportive comments regarding Secretary Mnuchin after he spooked markets Monday and continued to blame the Fed for the recent selloff," writes the Sevens Report's Tom Essaye. "As a result, investor focus will remain on U.S. politics and global growth as they have been the main reasons for the most recent stock declines."
Let's hope most of that is already priced in.
Write to Ben Levisohn at Ben.Levisohn@barrons.com