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Stocks recover big losses from last week; trading is light
Diamond Offshore rose $1, or 5 percent, to $21.30.
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Dow Jones Industrial Average tumbled 621 points in two days before the rebound.
The S&P 500 ended 0.8% higher, and the Dow Jones Industrial Average leapt about 123 points.
US stocks posted moderate gains, recovering a small portion of the big losses recorded late last week.
Wall Street’s rally slowed through Monday afternoon as crude oil prices continued be a drag investor enthusiasm, but then accelerated again at the close. The Standard & Poor’s 500 index rose 15 points, or 0.8 percent, to 2,036 and the Nasdaq composite was up 19 points, or 0.4 percent, to 4,988. It remains 1 percent lower for 2015 after hitting an all-time high in May and then plummeting in August over trouble in China’s stock market. The S&P 500 and the Nasdaq Composite also climbed 0.3%.
The pan-European FTSEurofirst 300 index, which had fallen 1.2 percent on Monday, rose 0.3 percent, while the euro zone’s blue-chip Euro STOXX 50 index was up 0.1 percent.
Trading volumes are expected to be light for the rest of the week, with USA stock markets operating a shortened session on Thursday and closing on Friday for Christmas. Newfield Exploration dropped 4 percent and ConocoPhillips fell 2 percent. Investors have already had plenty of time to digest this month’s major decisions by the Federal Reserve to raise rates and by the European Central Bank to increase its stimulus efforts.
Shares in Apple (NASDAQ:AAPL) rose 0.6% to US$106.62 after it announced a settlement with Ericsson (ADR) (NASDAQ:ERIC) in a mobile phone patent dispute.
Earlier on Tuesday the US Commerce Department trimmed third-quarter economic growth to a 2 percent annual pace from the 2.1 percent estimated earlier.
At this point, many fund managers and traders have closed their books for 2015.
CURRENCIES: The dollar was up slightly against the yen at 121.02 from 121.01 in the previous day’s trading.
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“Today’s calendar is relatively light, and with liquidity getting thinner over the course of the week, the potential for exaggerated moves is very real”, said Chris Beauchamp, senior market analyst at IG.