Published: Sat, February 10, 2018
Finance | By Cynthia Curry

Dow bounces more than 300 points

Dow bounces more than 300 points

The S&P/TSX composite index was down 105.59 points, or 0.7 per cent, at 14,960.02 after losing 1.7 per cent on Thursday.

The rout marked a stark turnabout in investors' mood from just two weeks ago, when indexes set their latest record highs.

Despite the heavy losses this week, the Dow remains up 36 percent since Trump's election.

'I just think the market has to find new footing here, ' said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

The market began falling in the first few minutes of trading, and the pace of the declines worsened as the day wore on. But this week's market slide has demonstrated that old saying on Wall Street is true - "you buy on the rumor and sell on the news". That's good for the economy, but investors anxious it will hurt corporate profits and that rising wages are a sign of faster inflation.

US stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4.0%, as the Dow notched its biggest intraday decline in history with a almost 1,600-point drop and Wall Street erased its gains for the year.

That's good for the economy, but investors anxious that rising wages will hurt corporate profits and could signal an increase in inflation.

Federal Reserve to accelerate a rise in interest rates. Inflation can also send bond yields higher, which makes it more expensive for individuals, companies and even the USA government to borrow money.

That fed into widespread concerns that market prices were too high following a strong run over the past year that pushed many indexes to record highs.

The S&P 500 lost $2.49-trillion in market value since January 26 through Thursday, according to S&P Dow Jones Indices. However, the Dow still finished the week with a decline of more than 5 per cent, marking its worst week since January 2016. The Nasdaq composite fell 274.82 points, or 3.9 percent, to 6,777.16.

Earlier, Asian markets also saw steep losses as inflation worries gripped financial markets, sending United States stock futures sinking further into the red after Wall Street suffered its biggest decline since 2011.

Among the biggest losers Tuesday was Tokyo's Nikkei 225 stock average, which ended 4.7 percent lower. The housing industry is solid, and manufacturing is rebounding.

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The company was downgraded on Monday, July 17 by Keefe Bruyette & Woods. 2/7/2018-Stifel Nicolaus Reiterated Rating of Buy. Water Island Capital Llc increased Aetna Inc New (AET) stake by 19.87% reported in 2017Q3 SEC filing. (NYSE:AYI).

This could be the worst week for stocks since the financial crisis. "The global economy is growing in a synchronized fashion, corporate balance sheets are strong, and banks are well capitalized". That combination usually carries stocks higher. He added such sell-offs "are particularly unsettling to investors because it is hard for them to point to a familiar culprit relating to economics, geo-politics or the corporate world". If rates rise quickly, that argument becomes much less persuasive. He said investors are now selling because they are afraid of bigger losses if they stand pat.

The boom carried the stock market so high that it was considered "extremely overbought" based on technical factors.

"This is going to take longer to work out than people expect", he said.

The Dow dropped 1,032 points, or 4.1 percent, to 23,860. The British FTSE 100 index fell 1.8 percent.

The Nasdaq is down 28.90 points, or 0.4 percent.

The Russell 2000 is down 27.54 points, or 1.8 per cent.

The dollar fell to 108.84 yen from 109.42 yen.

In other energy futures trading, wholesale gasoline fell 7 cents to $1.70 a gallon.

Wholesale trade inventories increased 0.4% for the month. That also sent the pound higher.

Twitter had a banner day, soaring 12 percent after turning in a profit for the first time. According to CNBC, the Dow has moved 20,000 points up and down over the course of the week, covering a trading range of 2,000 points.

The Standard & Poor's 500 index gave up 77 points, or 2.9 percent, to 2,603. South Korea's Kospi gained 0.5 percent and the Hang Seng of Hong Kong rose 0.4 percent.

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