The declining US stocks on Wednesday raised global concern over the health of the world economy and the problem that it would affect US.
The benchmark S&P index witnessed drop in six of the past eight sessions and is at a low percentage of 8.2 from a record closing high Sept. 18.
The Dow Jones industrial average fell 195.34 points, or 1.2 per cent, to 16,119.85, the S&P 500 lost 21.94 points, or 1.17 per cent, to 1,855.76 and the Nasdaq Composite dropped 41.28 points, or 0.98 per cent, to 4,185.90.
But Wall Street stocks were seen bouncing back on Thursday giving a comparatively positive outlook of the U.S. economy, as the number of people seeking U.S. unemployment aid fall down to a lowest level in 14 years last week. The drop also came on worries over the spread of Ebola and the affect it would have on the industry.
“It’s not just what the Fed speakers are saying, it is who is saying it. Looking at folks who had been previously been portrayed or perceived as being perhaps a little bit more hawkish, now having a much more conciliatory tone is giving a little bit of ease to investor concerns,” said Eric Wiegand, senior portfolio manager at the Private Client Reserve of U.S. Bank in New York.
“Couple that with data that isn’t continuing to be indicative of slowing in the U.S. – the good jobless claims number, industrial production – what a relief there.”
An umpteen number of Fed speakers have been scheduled for today, including Kansas City Fed President Esther George, Philadelphia Fed President Charles Plosser, St Louis Fed President James Bullard, Atlanta Fed President Dennis Lockhart and Minneapolis Fed President Narayana Kocherlakota.
The Dow Jones industrial average .DJI saw a drop of 0.07% (12.05 points), to 16,129.69.
The S&P 500 .SPX managed a raise of 0.09% i.e. 1.59 points to 1,864.08 and the Nasdaq Composite .IXIC dropped to 4,212.88 a loss of 2.44 points, or 0.06%.
UnitedHealth(NYSE:UNH): Shares up 4.6 percent to $85.94 and served as the major upsurge for the Dow and S&P 500. The largest U.S. managed care company’s third-quarter earnings topped expectations.
Netflix shares (NFLX.O) dived 21.3 percent to $353 as the biggest haul on both the S&P 500 and Nasdaq 100 .NDX following the release of its third quarter results and announcement of signing up fewer video-streaming subscribers than forecast for the quarter.
It is expected that the earnings of S&P 500 companies will boost to 6.9% after the third quarter begins.
Chesapeake Energy (CHK.N), with a rise of 15.8 percent was the highest gainer of percentage on S&P 500, after the natural gas producer said it will sell some of its shale assets to Southwestern Energy (NYSE:SWN) in a $5.4 billion deal.
The biggest percentage decliner on S&P 500 was Netflix.
The largest percentage gainer on the Nasdaq 100 had was Micron Tech (MU.O), as the largest percentage gainer had a rise of 4.4 percent, and yet again the largest percentage decliner was Netflix.
No latest 52-week highs were noticed on the benchmark S&P 500 index and 15 new lows.
The Nasdaq Composite had 9 new highs and 73 new lows.