- George Zimmerman will not be charged in domestic dispute
- Russian officials press bilateral U.S. trade deal
- Selfies at Funerals blog creator retires after Obama flub: ‘Our work here is done’
- New Obama adviser Podesta is against Keystone but will steer clear of pipeline deliberations
- 40 Australian adults, children found in ‘one of the worst accounts of incest ever made public’
- Venezuela’s Maduro calls on student ‘price vigilantes’ to hit the streets, report businesses
- Atheists smug as Hindus join Satanists to demand display at Oklahoma Statehouse
- Bow before Valkyrie, NASA’s ‘superhero robot’ entry in DARPA challenge
- 10-year-old Pennsylvania boy suspended for pretend bow-and-arrow shooting
- Tea partyers turn on Capitol Hill budget deal
Stocks briefly drop, recover after fake bomb tweet
Question of the Day
The AP released the following statement at 1:12 p.m. EDT: “The (at)AP twitter account has been hacked. The tweet about an attack at the White House is false. We will advise more as soon as possible.”
The Dow Jones industrial average fell more than 150 points after the fake Twitter posting, then quickly recovered.
Other markets also reacted to the fake posting.
The price of crude oil fell, then rose back up. The yield on the benchmark U.S. government bond, the 10-year Treasury note, briefly dropped as traders shifted money into low-risk investments.
The turmoil lasted for about five minutes. By about 1:13 p.m. EDT, stocks, bonds and crude oil were all trading about where they were before the fake tweet was posted.
The stock market started higher Tuesday following strong earnings across a range of U.S. industries. Makers of handbags, jet planes and chemical products all turned in good results for the first quarter, reviving investors’ confidence after a sharp downturn in the stock market last week.
Coach, Lockheed Martin, DuPont and Travelers were among the winners after they reported results that were better than analysts had expected. The Dow Jones industrial average and the Standard & Poor’s 500 index both rose nearly 1 percent in morning trading, putting them on track for a third straight day of gains.
A resurgence in corporate profits after the Great Recession has been one of the drivers that has pushed both the Dow Jones industrial average and the Standard & Poor’s 500 index to record levels this year. However, investors are starting to question how much further company earnings can improve without the outlook for growth in the global economy improving as well.
Tuesday’s upturn in stocks put both indexes back in the black for April and closer to the record-high closes they reached on April 11. It was a sharp change of tone from last week, when the market had its worst drop since November. That sell-off started after economic growth in China, the world’s second-largest economy, slowed.
So far, about 70 percent of the companies that reported earnings for the first quarter have beaten analysts’ expectations, better than the 10-year average of 62 percent, according to data from S&P Capital IQ. Analysts currently expect earnings to rise by 2.1 percent in the first quarter, compared with 7.7 percent growth in the previous three-month period.
Netflix soared 25 percent to $219 after reporting a big gain in subscribers in the first quarter late yesterday. Coach, which makes luxury handbags and other accessories, soared 11 percent to $56.44. Lockheed rose 2 percent to $97.25. DuPont and Travelers each rose 3 percent, to $51.88 and $86.88, respectively.
The Dow was up 123 points at 14,691 as of 1:45 p.m. EDT. The S&P 500 was 14 points higher at 1,576. Both indexes are 1 percent below their record-high closes nearly two weeks ago.
The Nasdaq composite rose 34 points to 3,267.
Apple, the biggest component in the index, reports earnings after the market closes. Apple has lost 23 percent of its value this year. Investor worry that demand for the iPhone is waning as competitors such as Samsung sell more smartphones. It stock was up 2 percent at $405.
By Donald Lambro
Growth spikes are little more than trend-free anomalies
- Rand Paul: Budget deal 'shameful,' 'huge mistake'
- Teen thugs in D.C. run wild -- even while wearing GPS ankle bracelets
- Biden guarantees victory on immigration reform
- Obama takes 'selfie' at Mandela's funeral service
- Tea partiers turn on Capitol Hill budget deal
- CARSON: Why did the founders give us the Second Amendment?
- American bourbon now better than Scottish whisky: U.K.-born expert
- Leon Panetta named as source of 'Zero Dark Thirty' scriptwriters information
- MILLER: Dick Heller challenges D.C.s gun registration, files for summary judgment in Heller II
- VEGAS RULES: Harry Reid pushed feds to change ruling for casino's big-money foreigners
Independent voices from the The Washington Times Communities
A libertarian look at breaking news and political trends by author Tom Mullen.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow