Wall Street rebounded in another turbulent session, as investors rushed back into the market after the Standard & Poor's 500 index tested...
NEW YORK — Wall Street rebounded in another turbulent session, as investors rushed back into the market after the Standard & Poor’s 500 index tested a 2003 low.
The Dow closed up 151.17, or 1.8 percent, to end at 8,424.75.
In the broader market, the Standard & Poor’s 500 index advanced 8.37, or 1 percent, to 859.11, after earlier diving nearly 24 points to 826.84. The Nasdaq composite index added 1.22, or 0.1 percent, to 1,483.27.
Stocks rallied in the final hour of trading in part because fund managers whose portfolios are tied to the S&P 500 had to find a replacement for Anheuser-Busch. The brewer was officially acquired by Belgium’s InBev for $52 billion.
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Stocks have been trading erratically for several weeks as investors try to gauge the direction of the economy. Earlier in the session stocks were down after the government reported that wholesale prices plunged a record amount in October, a drop that could indicate a rising threat of deflation.
Meanwhile, homebuilders’ confidence in a near-term housing recovery sank to a new all-time low this month, according to the National Association of Home Builders/Wells Fargo housing market index. NAHB Chairman Sandy Dunn said the report “shows that we are in a crisis situation.”
There also remains uncertainty in the financial system as Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke were grilled on Capital Hill about their management of a $700 billion financial bailout. Paulson told the House Financial Services Committee that the U.S. has “turned a corner” in averting a financial collapse, but more work needs to be done.
But early in today’s session, investors found some encouragement in an unexpected announcement from Hewlett-Packard that fourth-quarter and 2009 earnings will come in above Wall Street projections. The results signal HP, the world’s largest-maker of personal computers, is weathering the economic crisis that has siphoned off sales at other technology companies.
HP shares gained $4.25, or 14.5 percent, to $33.59 a share.