Wall Street rebounds on earnings

By Dow Jones newswires

Also helping boost appetite for stocks has been a relatively strong second quarter earnings season and low interest rates. "Corporate earnings are continuing to come in strong," Doug Cote, chief market strategist at Voya Investment Management, said. "At the end of the day, we are still in a bull market.

He said that Tuesday's dive was likely a result of investors making those types of bets, since the steepest losses were in large cap stocks, which are typically easier to trade than small-cap stocks and high-yield debt, which have both been under pressure recently. European markets fell.

The wireless carrier decided Tuesday to abandon its pursuit of T-Mobile US and replace its chief executive. 21st Century Fox withdrew its bid to buy Time Warner, pushing shares up 5 per cent.

Investors are also worried about tensions along the Russia-Ukraine border. "Geopolitical headlines can always trigger the perception of increased risk," Gordon Charlop, a managing director at Rosenblatt Securities, said. "We're returning to the level where yesterday's selloff is going to be countered with bargain hunters.

Groupon shares declined 15 per cent after posting a loss that widened in the second quarter and issued disappointing guidance for the current quarter, helping weigh on shares.

Read more here: Business Spectator

    

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