U.S. stocks turned higher on Wednesday, November 21, 2018, as investors bought back beaten-down technology, internet and energy names after a punishing two-day selloff. The rebound came just ahead of the Thanksgiving holiday, when trading volumes are often lighter.
Technology shares helped drive the move. The S&P technology index rose 1.1 percent after three straight sessions of declines, while internet stocks also recovered. Facebook Inc, Apple Inc, Amazon.com Inc and Alphabet Inc all advanced, although Netflix Inc slipped.
Energy stocks also firmed, with the S&P energy index up 1.9 percent after oil prices steadied following a 6 percent drop the previous day. Retail shares joined the recovery as the S&P retail index moved toward ending an eight-session losing streak.
Foot Locker Inc was among the standout gainers, jumping 14.8 percent after quarterly same-store sales beat expectations and lifted other sports retailers. Dick’s Sporting Goods Inc, Hibbett Sports Inc and Nike Inc, which supplies Foot Locker, also rose. Gap Inc added 5.3 percent after Wall Street firms responded positively to Chief Executive Arthur Peck’s plan to close underperforming stores, a move expected to cut significant losses.
Autodesk Inc climbed 10.3 percent after reporting third-quarter results above analysts’ estimates and announcing an $875 million purchase of cloud software company PlanGrid. The consumer discretionary sector gained 1.2 percent, helped by the moves in Foot Locker and Gap.
Market sentiment had been under pressure in recent months because of worries about slowing global growth and corporate earnings that may have peaked, raising questions about how long the decade-old bull market can continue. Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York, said: “This is not a bad economy,” and added, “The data on the economy should support a higher market going into the end of the year.”
By the close, the Dow Jones Industrial Average had risen 99.38 points, or 0.41 percent, to 24,565.02. The S&P 500 gained 17.49 points, or 0.66 percent, to 2,659.38, while the Nasdaq Composite added 89.75 points, or 1.3 percent, to 6,998.57.
Some traders also pointed to a report from capital markets-focused MNI suggesting the Federal Reserve could pause its rate-hiking cycle as early as spring. On the NYSE, advancing issues outnumbered decliners by 3.34 to 1, while Nasdaq advancers led decliners by 3.17 to 1.
The S&P 500 recorded six new 52-week highs and three new lows. The Nasdaq Composite posted 11 new highs and 75 new lows.
Additional reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur and James Dalgleish.
