Stocks Open Higher Wednesday 11/21 09:22
Stocks in the U.S. are higher Wednesday morning after two days of steep
losses, and major European indexes are also recovering.
NEW YORK (AP) -- Stocks in the U.S. are higher Wednesday morning after two
days of steep losses, and major European indexes are also recovering. Major
technology companies including Apple and Microsoft are up after they've tumbled
in the last few days. Crude oil prices are up about 2 percent after they sank
to a one-year low a day earlier.
KEEPING SCORE: The S&P 500 index gained 20 points, or 0.8 percent, to 2,663
as of 10 a.m. Eastern time. It's down 2.7 percent so far this week. The Dow
Jones Industrial Average rose 151 points, or 0.6 percent, to 24,625. The Nasdaq
composite added 101 points, or 1.4 percent, to 7,008. The Russell 2000 index of
smaller-company stocks picked up 15 points, or 1.1 percent, to 1,484.
Trading was light. U.S. markets will be closed Thursday for the Thanksgiving
holiday, and will be open for a half-day on Friday.
TECH TURNAROUND: Technology companies recovered a sliver of their recent
losses. Amazon rose 1.7 percent to $1,522 and Facebook picked up 1.9 percent to
$135. Apple inched up 0.2 percent to $177.32.
Apple's market value has dropped by about $250 billion since early October
and Amazon has fallen by $245 billion since early September. The combined loss
of around $495 billion for those two companies is greater than the value of all
but five S&P 500 stocks.
IF THE SHOE FITS: Retailer Foot Locker jumped 15 percent to $53 after its
third-quarter profit and revenue surpassed Wall Street's expectations. The
company added that it expects strong sales over the holidays.
Design software maker Autodesk climbed 10.2 percent to $135.60 after a
strong quarterly report. The company also said it is buying construction
software company PlanGrid for $875 million.
ENERGY: Oil prices rebounded Wednesday as benchmark U.S. crude gained 2.3
percent to $54.66 a barrel in New York. It fell 6.6 percent on Tuesday. Brent
crude, the international standard traded in London, advanced 1.7 percent to
$63.58 a barrel.
Crude prices have plunged since early October on worries of rising supplies
and softening global growth.
BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 3.07
percent from 3.04 percent.
Utilities and other high-dividend stocks also declined. Those companies have
done better than the rest of the market during turbulent trading in October and
November, but when the market makes a broad rebound they usually get left
ECONOMIC CONCERN: A global economic adviser cut its forecast for economic
growth in 2019 and said the world economy faces growing risks, including from
trade disputes and higher interest rates. The Organization for Economic
Co-operation and Development, which advises many of the world's richest
economies, now expects the global economy to grow 3.5 percent instead of 3.7
percent next year. Concerns about slower growth in the global economy have
contributed to the market's recent losses.
CURRENCIES: The dollar rose to 112.98 yen from 112.40 yen. The euro edged up
to $1.1403 from $1.1399.
OVERSEAS: Germany's DAX and Britain's FTSE 100 both rose 1 percent. The CAC
40 in France added 0.6 percent.
Japan's benchmark Nikkei 225 dropped 0.4 percent and the Kospi in South
Korea was down 0.3 percent. Hong Kong's Hang Seng index rose 0.5 percent.