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US-STOCKS-MARKETS
US stocks gain for 2nd day, trimming October losses
NEW YORK, Nov 1, 2018 (BSS/AFP) – Wall Street stocks rose solidly for the
second straight session Wednesday, easing the losses from a bruising month
following good employment data and mostly solid earnings.
The Dow Jones Industrial Average ended up one percent at 25,115.76.
The broad-based S&P 500 gained 1.1 percent to 2,711.73, while the tech-
rich Nasdaq Composite Index won 2.0 percent to close at 7,305.90.
The rally lifted most industrial sectors, especially financials and
technology companies. But it did not significantly dent earlier losses from
the month, leaving the S&P 500 off nearly seven percent for October.
“For believers in equity market seasonality, October did not disappoint
with equities experiencing one of their worst drawdowns since the global
financial crisis,” Nathan Thooft, senior managing director at Manulife Asset
Management, told AFP.
“The month was full of tricks and nightmares but seems to be ending with a
treat.”
Stocks have been under pressure due to a variety of factors, including
worries over higher US interest rates, trade war fallout and, most recently,
a potential Democratic takeover in Congress in next week’s midterm elections.
But the pullback throughout the month also created conditions for bargain
hunting, with stocks “oversold” following the rout, analysts said.
Facebook was a big winner, gaining four percent after reporting a nine
percent jump in quarterly profits to $5.1 billion following much higher
revenues.
Other large technology companies also advanced, including Amazon, up 4.4
percent, Apple, up 2.6 percent, and Google parent Alphabet, up 3.9 percent.
Apple will report earnings of its own on Thursday.
General Motors surged 9.1 percent after reporting third-quarter profits of
$2.5 billion in results that bested analyst expectations by a wide margin
thanks to strong operating profits in North America and China.
But Kellogg dived 8.9 percent after cutting its profit outlook due to
higher spending on investments.
BSS/AFP/HR/0932