A big comeback on Wall Street Wednesday. The Dow rebounded from a nearly 600 point deficit to close flat and the S&P 500 eked out a gain. But investors fearful of recession sought safety in government bonds, and that capped the gains for stocks.
Payne Capital Management president Ryan Payne:
SOUNDBITE: PAYNE CAPITAL MANAGEMENT PRESIDENT RYAN PAYNE (ENGLISH) SAYING:
"We're still seeing a lot of money going into the bond market. Even though you're seeing a little bit of a recovery here, it could be a dead-cat-bounce as well, I would say that the fear guage is still pretty high. Investors are still pretty negative on stocks which ironically is actually a pretty bullish sign."
The sliding bond yields pushed interest-rate sensitive bank stocks lower. JPMorgan Chase and Bank of America were among the S&P 500's top decliners.
Disney depressed the Dow. The Mouse House's quarterly profit slid much more than Wall Street expected as it poured money into its streaming video business.
CVS shares jumped. The drugstore chain's profit topped estimates as it reaped strong sales in the Aetna health insurance business it bought last year.