Stocks bounce back after two-day rout; bonds drop
BNN Bloomberg
Stocks rebounded after the worst two-day selloff since October 2020 as dip buyers scooped up some of the hardest-hit shares. Treasuries fell.
Stocks rebounded after the worst two-day selloff since October 2020 as dip buyers scooped up some of the hardest-hit shares. Treasuries fell.
Companies that stand to benefit the most from a rebound in economic growth led gains on Thursday, with small caps and travel stocks surging. Boeing Co. led gains in the Dow Jones Industrial Average, with China on the cusp of lifting an almost three-year grounding of the company’s 737 Max airplane. Tech underperformed after Bloomberg News reported that Apple told its component suppliers demand for the iPhone 13 lineup
Pfizer Inc. expects its COVID-19 shot to hold up against the omicron variant, an executive said, with a handful of infections discovered in countries including the U.S., Norway, Ireland, South Korea and Brazil. Germany imposed stringent nationwide restrictions on people who aren’t vaccinated and limited attendance at soccer games and other public events to check a brutal surge in infections.
Applications for U.S. state unemployment benefits rose by less than forecast last week after a punge tied to seasonal adjustments in the prior period. The smaller-than-expected rise in claims suggests additional progress in the job market. The figures come a day before the government’s monthly employment report, which is projected to show payrolls increased by 546,000 in November.
The swoon in the S&P 500 in the last two days has depressed one measure of its breadth to a level that in the past coincided with bargain hunting and a recovery in the gauge. The measure is the proportion of stocks trading above the 50-day simple moving average.
