Markets Right Now: Wall Street is rocked by more selling

Markets Right Now: Wall Street is rocked by more selling

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Other major companies also fell sharply.

The Dow and S&P 500 both moved back in positive territory for the year. The index is now off about 9.4 percent from its September 20 peak.

Some encouraging economic news helped stabilise markets.

Major equity indexes in the US started the day on the back foot and extended their slide before staging an unimpressive recovery in the second half of the session.

"What makes the latest volatility more troubling is that it's been hard to identify one specific cause", Kerry Craig, global markets strategist at JPMorgan Asset Management, told Bloomberg.

Wednesday's market rout was triggered by concern over tariffs, China's slowdown on corporate profits, rising costs, bond yields, Italy's budget, and the upcoming US mid-term elections. Heating oil jumped 1.1 per cent to $2.30 a gallon and natural gas fell 0.5 per cent to $3.19 per 1,000 cubic feet.

High-flying technology companies took the biggest hits after posting disappointing earnings. The Nasdaq surged 209.93 points, or 3 per cent, to 7318.34 after its biggest drop in seven years. Shares of the tech giant jumped 5.8 percent to $108.30. "I think tech is just caught up in it today".

United Parcel Service slid 5.5 percent to $107.93 after the shipping company reported weak global revenue, while the strong dollar and high fuel prices also hurt its results. She expects that to change when the dust settles. S&P 500 companies delivered second-quarter earnings growth of 25.2 percent, well ahead of forecasts.

For market favorites like technology and consumer-focused companies it's been even worse.

Google-parent Alphabet Inc sank 3.3 percent after its revenue missed estimates, fanning concerns that investments in new businesses, rising regulatory scrutiny and competition are producing slow returns.

US President Donald Trump calls Khashoggi killing a 'total fiasco'
Riyadh has maintained that neither bin Salman nor his father, King Salman, knew of the operation to target Khashoggi. Turkish officials suspect Khashoggi was killed and dismembered inside the consulate by Saudi agents on Octpober 2.

About 24 percent of the companies in the S&P 500 had reported third-quarter results as of Wednesday. Amazon is the second-most valuable USA stock and Alphabet is fourth.

While the US economy continues to grow, despite trade wars, the same can not be said of USA corporate profit growth, with a slew of disappointing forecasts this earnings season showing how tariffs, rising wages and borrowing costs, as well as jitters over geopolitical events are hitting companies.

The S&P 500 index rose 43 points, or 1.6 percent, to 2,699. It's fallen 14 percent since the end of August and is down 2.3 percent so far this year.

Trading has turned volatile on Wall Street this month following an unusually placid summer.

Boeing was one of the few gainers Wednesday.

Gold rose 0.1 percent to $1,232.40 an ounce.

The Dow fell 474 points, or 1.9 percent, to 24,494. USA -traded shares of WPP fell 17.5 percent to $57.75.

Reacting after hours, Netflix dipped 3 percent and Facebook, which reports results on October 30, lost 2.3 percent. Hong Kong's Hang Seng sank 1.1 per cent. Bond prices rose, sending yields lower, as investors sought out less risky assets.

Bond prices rose. The yield on the 10-year Treasury note fell to 3.13 percent. Copper dipped 0.1 percent to $2.75 a pound.

ENERGY: Benchmark U.S. crude edged up 0.6 percent to settle at $66.82 a barrel in NY. Brent crude, the benchmark for worldwide oil prices, rose 0.9 percent to $76.89 a barrel.

CURRENCIES: The dollar fell to 111.99 yen from 112.61 yen on Thursday.

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