Dow stages huge comeback after briefly plunging below 24,000

The erratic stock market staged a dramatic recovery on Monday from yet another plunge.The Dow closed ...

Posted: Dec 11, 2018 6:35 AM
Updated: Dec 11, 2018 6:35 AM

The erratic stock market staged a dramatic recovery on Monday from yet another plunge.

The Dow closed 34 points higher, recovering from a 500-point slide that briefly knocked the index below 24,000 for the first time since late June. The S&P 500 gained 0.2%, while the Nasdaq jumped 0.7%.

Banking, finance and investments

Brexit

Business, economy and trade

Continents and regions

Europe

European Union

Financial markets and investing

Government organizations - Intl

Northern Europe

Securities trading

Stock markets

United Kingdom

Apple Inc

Asia

China

Companies

East Asia

Economic indicators

Economy and economic indicators

Stock indexes

Economic conditions

Economic decline

Recession

Business and industry sectors

Consumer electronics

Consumer products

Electronics

Mobile and cellular telephones

Mobile technology

Smartphones

Technology

Apple (AAPL) led the turnaround. The iPhone maker erased a selloff caused by a Chinese court deciding to ban sales of most iPhone models by granting an injunction requested by Qualcomm. Apple announced midday Monday that it would appeal the court's decision, and the company insisted that all models of the iPhone continue to be available to Chinese customers.

"Anytime you get an upside reversal that's a bullish sign, at least in the very near term," said Justin Walters, co-founder at Bespoke Investment Group. "But today's rally doesn't mean we've broken out of any longer-term downtrend."

US stocks hit session lows on Monday morning after Prime Minister Theresa May said she would delay a crucial vote on her Brexit deal. The British pound shed 1.3% against the US dollar.

"Any news that isn't good is immediately treated as terrible," said Mark Luschini, chief investment strategist at Janney Capital.

The Brexit chaos reinforces one of Wall Street's biggest fears: slowing global growth. Germany and Japan are already in economic contraction, while China's economy has suffered from a wave of tariffs. A messy divorce between the UK and European Union is the last thing the global economy needs.

FTSE 100 closed nearly 1% lower. The FTSE 250, which has more companies focused on doing business in the UK, dropped almost 2%.

"The big worry is economic growth," said David Joy, chief market strategist at Ameriprise Financial. "Nobody knows what to make of the trade situation."

The CNN Business Fear & Greed Index, a gauge of market sentiment, is flashing "extreme fear."

The market is "starting to price in a recession-like scenario," JPMorgan Chase chief economist Bruce Kasman wrote in a report published on Friday.

JPMorgan estimates that the odds of a recession, based on a combination of economic data and market variables, has climbed to 36% from 25% at the end of September.

"We do not see as high a risk of recession as financial markets imply," Kasman said.

Concerns about growth and fluctuations in the bond market have slammed bank stocks. The S&P 500 banking sector led the way lower on Monday, building on last week's steep losses. Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) lost more than 2% apiece.

Investors are worried about how an economic slowdown would impact demand for loans. Banks are also hurt by the flattening bond yield, a central fear in recent days. The narrowing gap between long and short term bond yields makes it harder for banks to make money on the difference between what they pay out in interest rates and lend at. A yield curve inversion has been a reliable indicator of recessions in the past.

"The message that financials are sending about growth is more ominous," said Joy. "Banks are a proxy for the outlook for growth. And the outlook is diminishing."

Energy stocks like ConocoPhillips (COP) and Pioneer Natural Resources (PXD) were under pressure from another round of selling in the oil patch. US oil prices plunged 3% to $51 a barrel, reflecting lingering concern about excess supply despite Friday's agreement by OPEC and Russia to cut output.

CNN Business' Charles Riley contributed to this report.

Huntsville/Redstone
Mostly Cloudy
52° wxIcon
Hi: 67° Lo: 49°
Feels Like: 52°
Muscle Shoals
Partly Cloudy
54° wxIcon
Hi: 65° Lo: 48°
Feels Like: 54°
Huntsville/Madison
Mostly Cloudy
50° wxIcon
Hi: 65° Lo: 47°
Feels Like: 50°
Decatur
Cloudy
52° wxIcon
Hi: 66° Lo: 50°
Feels Like: 52°
Fort Payne
Mostly Cloudy
47° wxIcon
Hi: 70° Lo: 49°
Feels Like: 45°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Cases: 490220

Reported Deaths: 9744
CountyCasesDeaths
Jefferson704661342
Mobile35810721
Madison32203443
Tuscaloosa23961409
Montgomery22417489
Shelby21773211
Baldwin19635272
Lee14883147
Morgan13571248
Etowah13118312
Calhoun13090283
Marshall11212203
Houston10036257
Limestone9321133
Elmore9313179
Cullman8864177
St. Clair8771220
Lauderdale8570210
DeKalb8419173
Talladega7450162
Walker6492249
Jackson6466102
Autauga617285
Blount6072125
Colbert5978118
Coffee5229100
Dale4614106
Russell401431
Franklin397675
Covington3948105
Chilton383196
Escambia376670
Tallapoosa3559139
Clarke342749
Dallas3396140
Chambers3393103
Pike292771
Lawrence281284
Marion280793
Winston245665
Bibb243759
Marengo238554
Geneva238468
Pickens223554
Barbour209550
Hale208464
Fayette199356
Butler195165
Henry182341
Cherokee176338
Monroe165638
Randolph162740
Washington156233
Crenshaw143353
Clay143254
Macon140543
Cleburne136539
Lamar131632
Lowndes130148
Wilcox120825
Bullock116534
Conecuh106523
Perry105327
Sumter98231
Coosa86823
Greene86732
Choctaw54723
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Cases: 768946

Reported Deaths: 11266
CountyCasesDeaths
Shelby866001472
Davidson80790841
Knox45241571
Hamilton39979454
Rutherford37906375
Williamson25011202
Sumner21166312
Montgomery17207207
Out of TN1667091
Wilson16194209
Unassigned15662125
Sullivan14169273
Blount13929178
Bradley12734138
Washington12671231
Maury12141159
Sevier11889161
Putnam10537168
Madison10049226
Robertson8886118
Hamblen7958161
Anderson7893155
Greene7258144
Tipton6896101
Coffee6264114
Gibson6168140
Dickson6148103
Cumberland6072117
Carter5926152
McMinn586289
Roane581795
Bedford5756117
Loudon563164
Jefferson5580116
Lawrence554681
Warren529875
Monroe526389
Dyer5222101
Hawkins518793
Franklin470684
Fayette463771
Obion435794
Rhea411773
Lincoln410561
Cocke396192
Marshall388354
Cheatham385743
Campbell378158
Weakley377559
Giles371095
Henderson361173
Carroll346881
Hardeman337663
Macon335073
White333965
Hardin329762
Lauderdale309342
Henry298975
Marion290244
Wayne286430
Scott285042
Overton283757
Claiborne273666
McNairy265051
Haywood264359
Hickman262840
DeKalb261548
Smith253336
Grainger240746
Trousdale237922
Morgan228537
Fentress228344
Johnson215038
Chester200647
Bledsoe198210
Crockett196946
Unicoi179347
Cannon173628
Polk173621
Union168930
Lake167326
Grundy166330
Sequatchie153927
Decatur153137
Humphreys151321
Benton149939
Lewis145724
Meigs125421
Jackson124834
Stewart123124
Clay106230
Perry102527
Houston102330
Moore93616
Van Buren79120
Pickett74723
Hancock49312

Community Events