Strong earnings results and the House's passage of the tax reform bill helped Wall Street bounce back from its two-day drop. Fred Katayama reports.
Wall Street bounced back Thursday from its two-day drop. Helping boost the indexes: strong earnings results from Wal-Mart and Cisco... and the House's passage of the tax reform bill. Schroders investment strategist Jonathan MacKay: SOUNDBITE: JONATHAN MACKAY, INVESTMENT STRATEGIST, SCHRODERS, (ENGLISH) SAYING: "I think honestly, it's a little bit of investors just waiting for a dip to buy. So the market had been wobbly for about a week to a week-and-a-half. We weren't down that much. We were only down about a percent-and-a-half or so. But literally, I think, investors are waiting for any opening to get back in there." Cisco's quarterly profit climbed, driven by gains from its security business. Shares shot up. Wal-Mart shares surged higher. The world's largest retailer's quarterly sales rose amid higher demand for hurricane-related goods and soaring online sales. And Wal-Mart raised its profit forecast for the full year. Hurricanes had the opposite impact on Best Buy. The consumer electronics retailer's established store sales was also hurt by the late launch of the iPhone X. The drag from hurricane-related disruptions unwound in October as U.S. industrial production recorded its biggest increase in six months. Other data: the number of Americans filing for jobless benefits unexpectedly rose last week. European stocks also bounced back, snapping their losing streak. Tech and healthcare stocks led the way north.