Economy

Dow Gains 775 Points Because Selling Pressure Can Only Last So Long

Dow Gains 775 Points Because Selling Pressure Can Only Last So Long

A day after the Dow Jones Industrial Average ($DJI) posted its largest ever single day points gain, the market appears poised to head in the opposite direction. The Nasdaq slipped 2 points to 6,576.

The Dow gained 260.37 points, or 1.1 percent, to 23,138.82. Among big retailers, Amazon rose 9.4 percent, Kohl's 10.3 percent and Nordstrom 5.8 percent. The S&P 500 has averaged a 10.8% rise over the six months following such a washout, with only the minus 2525 reading in October 2008 resulting in a loss, though of only 5.9%. All 30 Dow members gained, with Nike and Apple rising more than 7 percent. Thursday would make eight out of nine.

China, the counterpart of the USA trade war, has also seen its major stock indexes including the SSE Composite experience a steep decline in the past several weeks, unable to sustain momentum.

The energy sector also rose, with USA crude oil prices soaring more than nine percent after weeks of declines. On the whole, it's been a turbulent month - the market remains on track for its worst December since 1931, during the depths of the Depression, and could finish 2018 with its biggest losses in a decade. Credit card company Visa climbed 7 percent, and Mastercard was up 6.7 percent. Brent crude, used to price worldwide oils, was down 2.5 percent to $53.39 a barrel in London.

Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt.

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The Russell 2000 is up 37.72 points, or 2.9 per cent.

Even with Wednesday's recovery, us stock markets are still on pace for their worst December since 1931, CNN reported, citing S&P Global Indices.

Benchmark U.S. crude climbed 8.7 percent to settle at $46.22 a barrel in NY.

US stocks have been affected since the end of the summer season because of a dire economic growth outlook and on-going US-China tensions over trade disputes.

Bank stocks fell along with Treasury yields, which affect interest rates on mortgages and other loans.

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With the month almost over, just three days had temperatures below normal and even then the overnight low did not drop below zero. In Wadena County, the snow accumulation may range from 5-12 inches with wind gusts as high as 40 miles per hour .

The recovery in oil prices also bodes well for the Toronto Stock Exchange, which resumes trading on Thursday.

CURRENCIES: The dollar strengthened to 110.57 yen from 110.41 yen on Monday.

In Europe, the benchmark Euro Stoxx 50 lost 1.1%.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day.

And the negative sentiment has been global: On Tuesday, the closely watched Nikkei 225 in Japan fell 5 percent. Britain's FTSE 100 fell 1.5 percent. Based on the trend of most US markets, an additional drop in the Dow is highly likely.

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It also could get several inches of snow Wednesday night, as well as up to 7 inches on Thursday, the weather service said. A winter storm warning has been issued for areas along and west of a line from Granite Falls to St.

On Monday, a senior Treasury official, who declined to be named, told CNBC that the goal of the call and putting out the statement, was a "prudent, preemptive measure" following last week's market volatility, which saw the Dow experiencing its worst one-week plunge in a decade.