Dow jumps more than 2% as stocks rebound on strong earnings

Marco Green
October 18, 2018

In healthcare, shares of diversified product company Johnson & Johnson rose 1.9 percent, while insurer UnitedHealth Group gained 4.7 percent following their respective quarterly reports. Alphabet, Google's parent company, rose 2.8 per cent to US$1133.08. Netflix is up 80.5 per cent this year, the fourth-best of any S&P 500 stock.

Investors dumped relatively safe United States government bonds, with yields on the 10- and two-year notes edging higher.

The Dow and S&P 500 spent part of the day in positive territory, as investors questioned whether the market was ready to turn the page after last week's pullback. IBM reported weak revenue in its latest quarter.

Global stock indexes have been struggling this year as investors move money to the USA and out of Europe and Asia in response to faster economic growth in the United States and rising trade tensions. Tilray fell 4.4 per cent to US$158.38 while Canopy Growth shed 6.8 per cent to US$53.01.

Stocks notched their best day since March on Tuesday as strong earnings reports helped lift spirits on Wall Street, following a sell-off that had shaved thousands of points from the major United States indices last week. Hickey valued the Canadian cannabis market at about $3.2 billion in 2019 and said it will climb to $8.1 billion by 2023.

Tilray's market value stands at nearly US$15b, up ninefold since it went public in mid-July.

The huge gains reflect investors' view that that other countries will legalise marijuana in the years to come. The contract gained 0.2 percent to close at $71.92 per barrel in NY.

"We don't expect the Kingdom to be as accommodative to the White House requests for stronger production", he said, adding that the Saudis could cut as much as 500,000 barrels per day of production "as a warning shot should the USA opt to impose any type of sanction in response to the Khashoggi developments".

United States data showed retail sales in September inched higher by 0.1 per cent, well below the 0.6 per cent gain projected by analysts, although there was some good news in the details.

The Dow Jones industrial average rallied 2.17%, 0r almost 550 points, after ending lower four out of the previous five sessions.

In another sign investors were nervous about stocks, gold rose 0.7 per cent to $US1,230.30 an ounce and silver picked up 0.6 per cent to $US14.73 an ounce. Silver lost 0.2 percent to $14.70 an ounce. Copper lost 0.4 per cent to $US2.79 a pound.

CURRENCIES: The dollar strengthened to 112.39 yen from 112.28 yen late Tuesday. The euro fell to $1.1578 from $1.1584.

Japan's benchmark Nikkei 225 jumped 1.3 percent to 22,842.12. Italy's FTSE MIB jumped 2.2 percent after the government avoided last-minute delays in presenting a budget plan.

Facebook rallied 2.7 percent while Amazon and Apple were up 2.3 percent and 1.3 percent, respectively.

The Hang Seng index in Hong Kong has fallen 22 per cent since early January, meeting Wall Street's definition of a "bear market", or a decline of 20 per cent from a recent peak.

Other reports by Click Lancashire

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