Leading retailers mostly fell following mixed earnings reports, with Target dropping 10.5%, Lowe's 5.7% and Kohl's 9.2%. Investors have been wrestling with whether the recent selloff was the beginning of the end for the yearslong bull market or a temporary pullback. Crude is on track for its biggest loss in three years. "On good days they're not the leaders, and on bad days they're the laggards". The Russell 2000 index of smaller-company stocks shed 21 points, or 1.5 per cent, to 1,474. Eastern time. The Dow Jones Industrial Average sank 428 points, or 1.7 percent, to 24,984. It was down as much as 596 earlier.
The Nasdaq Composite Index was up 96.19 points, or 1.39 per cent, to 7,005.02.
Stocks in the US are higher Wednesday morning after two days of steep losses, and major European indexes are also recovering. Those hopes faded after the two countries clashed at a Pacific Rim summit over the weekend. Nokia, a big supplier of telecom networks, saw its shares drop 4 percent, while its Swedish rival Ericsson was down 3.5 percent.
Target stocks fell 10.5 percent after a reporting lesser earnings than expected for the third quarter as major retailers prepare for Black Friday and the holiday shopping season at large.
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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.
For the first time in nearly 30 years, leaders at the summit could not agree on a joint declaration on world trade.
Latest economic data showed new orders for key US -made capital goods were unexpectedly unchanged in October and shipments rebounded modestly, which could temper expectations of an acceleration in business spending on equipment early in the fourth quarter. Shares of Amazon.com Inc, Alphabet Inc and Facebook Inc rose more than 2 percent, while shares of Apple Inc edged up 0.6 percent.
Lethal force can be used at Mexico border, Trump says
US Defense Secretary Jim Mattis on Wednesday was asked by reporters whether he thought Trump should visit troops in war zones. Trump also said he had given the military the authorization to use lethal force if necessary on the border with Mexico .
The Nasdaq closed at its lowest level in over seven months on Tuesday, while the S&P 500 and the blue-chip Dow erased all their gains for the year.
NISSAN: Nissan said Chairman Carlos Ghosn, who engineered a turnaround at the automaker, was arrested and will be fired on charges he underreported his income and misused company funds.
The biggest drag on the Dow was Boeing with a loss of 5.4 percent. Software maker Autodesk climbed 8.7 percent.
The frenzied selling followed big losses Monday, when the Dow shed almost 400 points.
Apple sank another 3.8 percent in early trading Tuesday and Microsoft gave up 2.5 percent.
Benchmark US crude lost 6.6 percent to $53.43 a barrel in NY. USA crude prices have dropped six weeks in a row and are trading around their lowest level in about nine months.
The price of crude oil fell 1.7 percent.
Wholesale gasoline added 0.4 percent to $1.58 a gallon.