A lit­tle bounce into Novem­ber

The Washington Post Sunday - - MARKETS -

Stocks ended a volatile trad­ing week in the green, re­bound­ing from Oc­to­ber’s sell-off as in­vestors weighed the lat­est batch of cor­po­rate earn­ings re­ports and as­sessed the prospects for a letup in the U.S.-China trade war.

The Stan­dard & Poor’s 500-stock index rose 2.4 per­cent in the five days through Fri­day, its big­gest weekly gain since March. The tech-heavy Nas­daq 100 rose 1.7 per­cent, de­spite a post-earn­ings plunge Fri­day in Ap­ple that was its worst since Jan­uary 2014. The Dow Jones in­dus­trial av­er­age in­creased 2.4 per­cent.

The bounce back from a tor­rid Oc­to­ber that pushed the S&P 500 to the cusp of a cor­rec­tion came as in­vestors took so­lace in pos­i­tive U.S. eco­nomic in­di­ca­tors, an earn­ings sea­son that has seen more than 80 per­cent of the large com­pa­nies that have so far re­ported beat­ing Wall Street’s profit es­ti­mates, and signs that the U.S. and China may be get­ting closer to re­solv­ing their trade dis­pute.

It’s also brought some of the widest price swings since the mar­ket strug­gled to re­cover from a dou­ble-dip cor­rec­tion last sum­mer. The S&P 500’s his­tor­i­cal 30-day volatil­ity stands at al­most 21 per­cent, up from about 6 per­cent at the be­gin­ning of Oc­to­ber.

The U.S. Trea­sury will sell $45 bil­lion of three-month bills and $39 bil­lion of six­month bills Mon­day. They yielded 2.36 per­cent and 2.52 per­cent in when-is­sued trad­ing.

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