Oil, Tech Stocks Help S&P Stanch Selloff
21 Novembre 2018 - 5:17PM
Dow Jones News
By Georgi Kantchevand Michael Wursthorn
The Dow Jones Industrial Average rose more than 100 points
Wednesday, halting a selloff that has left investors on edge as to
whether the longest bull market ever can regain its step.
Technology and other fast-growing stocks rebounded to help push
shares higher, with Apple, Amazon.com and Google parent Alphabet
all notching early-morning gains. A recovery in oil prices also
helped, sending shares of Chevron and Exxon Mobil up in recent
trading.
But even with Wednesday's gains, the blue-chip index remains
down 0.5% for the year, while the S&P 500 is off 0.4%, leaving
both indexes at risk for their first annual losses since 2015. The
technology-heavy Nasdaq Composite, which was up 1.2% Wednesday, is
up just 1.3% for the year, on pace for its weakest gain in seven
years.
The Dow was up 135 points, or 0.6%, to 24606 in recent trading,
while the S&P 500 added 0.6%.
"It's been a difficult year," said Ed Campbell, senior portfolio
manager at QMA, of the havoc the selloff has wreaked throughout
investors' portfolios. "All investors have goals and none of those
can be fulfilled with negative returns."
The longest bull market ever remains in jeopardy, analysts and
money managers said, as a crush of concerns threaten to unravel
stocks even further. Signs of slowing economic growth, which have
the potential to crimp profits, have been among investors' biggest
worries as companies from Apple to Kellogg have warned of slowing
sales in the final months of the year.
The continuing trade spat has only exasperated the dismay,
analysts added, since billions of dollars of tariffs could curtail
business activity and raise prices, while investors are
increasingly fearful that the Federal Reserve could commit a
misstep if it proceeds with an aggressive pace of interest-rate
increases.
Some investors, however, see little evidence of a looming
recession and point to still-strong corporate earnings.
"The bull market is still intact and this dip is temporary, due
to some well-known concerns," said Craig Callahan, president of
investment firm Icon Advisers. "A recession is still a few years
away."
"We are not selling. We are riding through this," he said.
UBS Global Wealth Management said in a note to clients that it
has recently increased allocations to global equities in the view
that the markets are already pricing in growth and trade risks.
"We view the selloff as overdone and a bull market correction,
with valuations that have become more compelling," the asset
manager said.
Oil prices rebounded Wednesday after sinking deeper into a bear
market Tuesday on concerns about oversupply. Brent, the
international price gauge, was up 1.9% to $63.70 a barrel, after a
6.4% tumble in the previous session. Data released late Tuesday
indicating a decline in U.S. crude inventories helped
sentiment.
Investors also watched for the latest moves in the trade dispute
between U.S. and China. The focus is now on a meeting between
President Trump and President Xi Jinping, set for the end of
November at the Group of 20 nations summit in Buenos Aires.
Elsewhere, the Stoxx Europe 600 added 0.7%, cutting its losses
for the week to 1.2%. Markets in Asia were mixed, with Hong Kong's
Hang Seng rising 0.5% while Japan's Nikkei Stock Average fell
0.4%.
Write to Georgi Kantchev at georgi.kantchev@wsj.com and Michael
Wursthorn at Michael.Wursthorn@wsj.com
(END) Dow Jones Newswires
November 21, 2018 11:02 ET (16:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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