Dow Surges 1,000 Points as Markets Recover From Christmas Eve Disaster

Dow Surges 1,000 Points as Markets Recover From Christmas Eve Disaster

Troy Powers
December 29, 2018

All but one member of the S&P 500 finished in the green, the Dow Jones Industrial Average jumped more than 1,050 points for its biggest-ever point gain and the Nasdaq 100 rallied 6 per cent in a surge last seen in March 2009.

US markets rebounded sharply on Wednesday after a Christmas Day off that followed the worst Christmas Eve sell-off in memory.

The Dow rose 258 points, or 1.1 percent, adding to Wednesday's record gain of 1,086 points. The S&P 500 also soared 5%, and the Nasdaq was up 5.8%, pulling out of bear market territory.

The S&P ended Monday 19.8 percent below its all-time closing high, with roughly three-fourths of its stocks already in a bear market.

Sales in the 2018 US holiday shopping season rose 5.1 percent to over $850 billion, the strongest in six years, according to a Mastercard report.

To say that USA stocks trading has been odd this week seems like an understatement.

USA 2018 holiday sales rose 5.1 percent from a year ago to over $850 billion, the strongest gain in six years, according to a Mastercard report.

The S&P.SPX was up 24.41 points, or 1.04 percent, at 2,375.51, at 11:37 a.m. ET, a day after the Christmas holiday.

Stocks are down sharply Thursday, making the prior day's strong performance seem like an aberration, as Wall Street stumbles toward what could be its worst December since the Great Depression. The major averages posted huge recoveries Wednesday, after being closed for the holiday Tuesday and posting steep declines on Christmas Eve.

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TECH RALLY: Technology stocks accounted for much of Monday's early bounce. Adobe rose 6.1 percent to $217.71.

As investors desperately hope for any good news - whether from the administration or the Federal Reserve - to stop the stocks from their free fall, there is still value in the market to profit from.

Advancing issues outnumbered declining ones on the NYSE by a 4.84-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favoured advancers. Eastern Time. The Dow slid 295 points, or 1.3 per cent, to 22,582.

Futures of both the Dow Jones Industrial Average and the S&P 500, which were recently flirting with bear territory, plunged at least 1.4% in early morning NY trading on Thursday. The S&P 500 rose 1.1% and Nasdaq was up about 1.7%. "Main Street are happy with their jobs, enjoying their best wage increases in a decade", said Craig Johnson, president of Customer Growth Partners, a retail research and consulting firm.

The call did more to rattle markets than to assure them and all three major USA stock indexes ended down more than 2 percent on the day. Retailers also were big gainers, after a holiday shopping season marked by robust spending. Brent crude, used to price worldwide oils, gained 7.9 percent to $54.47 a barrel in London. Goldman Sachs declined 1.9 per cent to $159.82 as the yield on the 10-year Treasury fell to 2.76 per cent from 2.79 per cent late Wednesday.

The Russell 2000 is up 39.73 points, or 3.1 percent.

BUYBACK BOOST: rose 1.5 percent to $20.02 after the Chinese e-commerce company's board authorized a stock buyback program of up to $1 billion.

Gold edged up 0.6 percent to $1,281.10 an ounce and silver gained 1.2 percent to $15.31 an ounce.