US close: Virus fears fuel more heavy losses
By Josh White
Date: Wednesday 26 Feb 2020
(Sharecast News) - US stocks recorded another day of heavy losses on Tuesday, as market participants' hopes for some positive headlines after the previous session saw both the Dow Jones and Nasdaq Composite record their worst trading sessions in two years were dashed.
The Dow Jones Industrial Average was down 3.15% at 27,081.36, the S&P 500 lost 3.03% to 3,128.21, and the Nasdaq Composite was off 2.77% at 8,965.61.
At the open, the Dow was 140.43 points lower on Tuesday after another increase in the number of Wuhan coronavirus cases outside of China fuelled concerns about a potential prolonged global economic slowdown.
With European and Asian markets continuing to head south on Tuesday, AvaTrade's Naeem Aslam said the heavy selloff was an "overreaction".
"Risk off is the name of the trade today," Aslam quipped.
"Investors are tense due to the fear of a prolonged economic slowdown due to the outbreak of Coronavirus.
"In reality, it was nothing more than the market participants overreacting to news of the virus spreading."
Aslam pointed out that "nothing significant" occurred yesterday, which caused both of the indices to surge the way that they did.
Elsewhere, the US 10-year sovereign yield dived below 1.40% - its lowest mark since the 2016 dip.
On the macro front, the housing market picked up steam towards the end of 2019, leading to some improved gains in home values across the US.
In December, home prices rose 3.8% year-on-year, according to the S&P CoreLogic Case-Shiller National Home Price Index, up from the 3.5% gain in November.
The 10-City Composite increased 2.4% annually, up from 2% in the previous month.
Still on data, US consumer confidence ticked up in February to its best level in six months as solid employment and cheap fuel prices have seemingly helped Americans overlook past concerns, including the spread of the coronavirus.
The Conference Board's reading increased to 130.7 from a downwardly revised 130.4 in January.
Lastly, the Richmond Fed manufacturing index came in weaker than expected for February.
The index came to -2, well short of the +10 expected on the Street and the 20 reading in January.
In the corporate space, Home Depot turned lowe by the close, finishing down 0.97%, even after the retailer topped quarterly estimates, while Mastercard shares were 6.76% softer after cutting its revenue outlook as a result of the coronavirus.
United Airlines was flying 6.49% after warning that the virus would likely hurt its top and bottom lines.
Dow Jones - Risers
Dowdupont Inc. (DWDP) $30.52 0.00%
McDonald's Corp. (MCD) $212.14 -0.67%
Johnson & Johnson (JNJ) $144.65 -0.86%
Home Depot Inc. (HD) $237.38 -0.97%
Merck & Co. Inc. (MRK) $80.26 -1.30%
Coca-Cola Co. (KO) $57.82 -1.42%
Verizon Communications Inc. (VZ) $57.13 -1.50%
Procter & Gamble Co. (PG) $121.43 -1.52%
Microsoft Corp. (MSFT) $168.07 -1.65%
Walmart Inc. (WMT) $114.39 -1.66%
Dow Jones - Fallers
American Express Co. (AXP) $120.90 -5.69%
United Technologies Corp. (UTX) $138.81 -5.30%
Visa Inc. (V) $188.40 -5.23%
Unitedhealth Group Inc. (UNH) $263.39 -5.18%
JP Morgan Chase & Co. (JPM) $126.26 -4.46%
Boeing Co. (BA) $304.14 -4.33%
Exxon Mobil Corp. (XOM) $54.20 -3.83%
Chevron Corp. (CVX) $100.71 -3.82%
3M Co. (MMM) $146.85 -3.74%
Walt Disney Co. (DIS) $128.19 -3.62%
S&P 500 - Risers
HP Inc (HPQ) $23.35 5.66%
Xerox Corp. (XRX) $36.47 4.59%
Regeneron Pharmaceuticals Inc. (REGN) $442.35 3.99%
Keysight Technologies Inc. (KEYS) $93.66 3.05%
Perrigo Company plc (PRGO) $60.80 2.69%
American Tower Corp (Reit) (AMT) $246.47 0.42%
Clorox Co. (CLX) $167.85 0.39%
Hormel Foods Corp. (HRL) $44.72 0.34%
Qorvo, Inc. (QRVO) $96.60 0.27%
Anadarko Petroleum Corp. (APC) $72.77 0.00%
S&P 500 - Fallers
Fluor Corp. (FLR) $12.37 -10.23%
American Airlines Group (AAL) $23.12 -9.16%
Occidental Petroleum Corp. (OXY) $36.19 -8.33%
Southwest Airlines Co. (LUV) $49.66 -8.22%
Marriott International - Class A (MAR) $124.08 -7.97%
Cimarex Energy Co (XEC) $36.26 -7.95%
Norwegian Cruise Line Holdings Ltd (NCLH) $39.30 -7.68%
Royal Caribbean Cr (RCL) $89.55 -7.31%
Devon Energy Corp. (DVN) $17.78 -7.30%
Unum Group (UNM) $25.60 -7.21%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $442.35 3.99%
NetEase Inc. Ads (NTES) $337.91 0.87%
Celgene Corp. (CELG) $108.24 0.00%
Shire Plc Ads (SHPG) $179.20 0.00%
Intuit Inc. (INTU) $284.80 -0.57%
Biogen Inc (BIIB) $324.11 -0.57%
Liberty Global plc Series A (LBTYA) $20.56 -0.84%
Sirius XM Holdings Inc (SIRI) $6.98 -0.85%
Workday, Inc. (WDAY) $175.47 -0.92%
Liberty Global plc Series C (LBTYK) $19.54 -0.96%
Nasdaq 100 - Fallers
American Airlines Group (AAL) $23.12 -9.16%
Marriott International - Class A (MAR) $124.08 -7.97%
Mercadolibre Inc. (MELI) $630.00 -6.45%
Western Digital Corp. (WDC) $59.53 -6.34%
DENTSPLY Sirona Inc. (XRAY) $51.50 -5.88%
Paypal Holdings Inc (PYPL) $109.66 -5.82%
Qurate Retail Inc. (QRTEA) $8.55 -5.73%
Micron Technology Inc. (MU) $52.10 -5.29%
Wynn Resorts Ltd. (WYNN) $113.89 -5.23%
Idexx Laboratories Inc. (IDXX) $256.71 -4.86%
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