Sell-off in the stock market resumed on Thursday with volatility settling in, as the Dow fell sharply lower down over 1,000 points and the S&P 500 having gyrated between a low of 2,600 and 2,685 throughout the day finished down 100 points or close to -4% at close. The three major indexes were at two-month lows.
Today's 1,000 point swing follows Monday's same-point decline as interest rate fears intensify. US 10-Year Treasury yields rose close to four-year highs adding to sell-off pressure. Wednesday's rebound was swiftly reversed in trading today as market turbulence continues, reminding investors of a more normal state of play which is bull markets can swing wildly. The blue-chip index fell 1,032 or 4.15% to 24,860.46 propelling it technically into correction territory where there is a 10% decline from a stock high. The components all turned negative led by American Express down -5.63%, Intel -5.42% and Microsoft dropped -5.13%.
The S&P 500 five-day performance is -8.54%. None of its sectors made gains, among the sectors making the greatest losses were financials and consumer discretionary. Winners on the market-weighted index was Coty up +14.19% and Viacom added +7.21%. Nasdaq fell 274 points or -3.90%. Tesla stock came down to earth with a bump -8.73% after an enervating earnings report with sales meeting forecasts and losses under expectations. Analysts continued to be concerned about its Model 3 production.
- Dow 24,860.46 -4.15%
- S&P 500 2,581.08 -3.75%
- Nasdaq 6,777.16 -3.90%
- Russell 2000 1,472.63 -2.35%
- NYSE Composite 12,338.81 -2.75%
- Gold 1,320.0 +0.41%
- Oil WTI $60.32 -2.38%
Ramped up US production and inventories have added pressure to US crude oil which dropped for a fifth straight day. Gold made gains as investors sought safety from roiled equities.
Twitter stock takes flight after first profit made
Twitter closed up +12% at the close of trading on Thursday after the the social network company announced its first quarter of profitability after 12 years of operation. The company now has 330 million users although its use as a platform for bullying individuals and how involved it may or may not have been in the Russia election meddling scandal keeps it controversial.
Profit was $91m on revenue of $732m an increase of 2% year-over-year. CEO, Jack Dorsey said in a statement: "Q4 was a strong finish to the year."
"We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU growth. I'm proud of the steady progress we made in 2017, and confident in our path ahead," Dorsey added.