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US-STOCKS-MARKETS
US stocks end higher after choppy session, Dow +1.8%
NEW YORK, Oct 31, 2018 (BSS/AFP) – Wall Street stocks finished solidly
higher, taking a break from the selling action that has dominated October
even as analysts predicted more volatility ahead.
The Dow Jones Industrial Average gained 1.8 percent to close the session
at 24,874.64.
The broad-based S&P 500 advanced 1.6 percent to end at 2,682.63, and the
tech-rich Nasdaq Composite Index also jumped 1.6 percent to 7,161.65.
US stocks were in positive territory virtually the entire session, but the
market experienced a couple of waves of weakness that pushed the Nasdaq into
the red and also significantly cut the gains of the other two major indices.
But Wall Street ended firmly higher, bolstered by a report from the
Conference Board that rated US consumer confidence at a new 18-year high in
October.
“Volatility has returned because investors have a lot of questions,” said
Alan Skrainka, chief investment officer of Cornerstone Wealth Management.
“The market is trying to guess when the economic expansion might end.”
Key unknowns dogging investors include the effect of rising US interest
rates, the fallout from US-China trade tensions, and the impact on corporate
earnings if the economy slows, or is hit with a recession.
“Investors are really trying to build a picture of what this long-term
outlook is,” said Kate Warne, a principal at Edward Jones. “They are not
certain how much they should revised their estimates.”
Big winners in the Dow included Caterpillar, up 3.0 percent, Intel, up 5.2
percent, and Boeing, which surged 4.3 percent, recovering some of the losses
suffered on Monday when trade-war worries weighed on the aerospace giant.
Coca-Cola, another Dow member, climbed 2.5 percent after reporting a 30
percent rise in third-quarter profits to $1.9 billion, due in part to strong
sales in North America.
But General Electric plunged 8.8 percent after cutting most of its
dividend as it reported a $22.8 billion loss in the third-quarter. Executives
also disclosed an expansion of probes by the US Justice Department and the
Securities and Exchange Commission into company accounting.
Athletic apparel and sneaker company Under Armour surged 24.8 percent
after reporting a 39 percent jump in quarterly profits of $75.3 million.
BSS/AFP/HR/0942