Benchmarks closed mixed on Monday as investors’ sentiment were clouded with coronavirus’ impact weighing on corporate earnings.
The Dow Jones Industrial Average (DJI) dropped 328.60 points, or 1.4%, to close at 23,390.77 and the S&P 500 lost 28.19 points, or 1% to close at of 2,761.63. While, the Nasdaq Composite Index closed at 8,192.42, adding 38.85 points, or 0.5%. The fear-gauge CBOE Volatility Index (VIX) decreased 0.9%, to close at 40.30. Decliners issues outnumbered advancing ones for more than 3-to-1 ratio on the NYSE and a 2-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
The S&P 500 and the Dow sighed away from the consecutive winning streak in the last week as impact of coronavirus pandemic on corporate earnings dampened investors’ sentiments. However, the Nasdaq saw a northward movement as Netflix, Inc. (NFLX - Free Report) hit a 52-week high jumping 7%, closely followed by Amazon.com, Inc.’s (AMZN - Free Report) 6.2% gain. Netflix sportsa Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Out of the 11 major sectors of the S&P 500, financials and real estate led the broader index lower, as both the sectors fell nearly 3.5%. The Dow was weighed heavily by Caterpillar Inc.’s (CAT - Free Report) 8.7% drop. Overall, the S&P index recorded three new 52-week highs and no new low. Meanwhile, Nasdaq recorded 11 new highs and nine new lows.
Coronavirus to Weigh on Corporate Earnings
According to Johns Hopkins University reports, the United States has total more than 560,000 confirmed coronavirus cases. As fatalities reach more than 22,000, investors closely watch the impact of the virus on the economy. With fear of COVID-19 widespread still looming, major cities remain under lockdown and businesses stay shut.
Several companies have removed or lowered their earnings guidance and many have slashed their profit forecasts, citing the coronavirus outbreak as major issue. However, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, reported on Sunday that the outbreak was slowing down in America, giving optimism to the citizens. And also said that parts of the country may start to reopen in May.
For the first quarter as a whole, total earnings for S&P 500 companies are expected to drop 9% from the same period last year. Revenues, in the meanwhile, are likely to rise only 1.6% (Read more: What to Expect from Big Bank Earnings Amid the Coronavirus?).
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Benchmarks closed mixed on Monday as investors’ sentiment were clouded with coronavirus’ impact weighing on corporate earnings.
The Dow Jones Industrial Average (DJI) dropped 328.60 points, or 1.4%, to close at 23,390.77 and the S&P 500 lost 28.19 points, or 1% to close at of 2,761.63. While, the Nasdaq Composite Index closed at 8,192.42, adding 38.85 points, or 0.5%. The fear-gauge CBOE Volatility Index (VIX) decreased 0.9%, to close at 40.30. Decliners issues outnumbered advancing ones for more than 3-to-1 ratio on the NYSE and a 2-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
The S&P 500 and the Dow sighed away from the consecutive winning streak in the last week as impact of coronavirus pandemic on corporate earnings dampened investors’ sentiments. However, the Nasdaq saw a northward movement as Netflix, Inc. (NFLX - Free Report) hit a 52-week high jumping 7%, closely followed by Amazon.com, Inc.’s (AMZN - Free Report) 6.2% gain. Netflix sportsa Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Out of the 11 major sectors of the S&P 500, financials and real estate led the broader index lower, as both the sectors fell nearly 3.5%. The Dow was weighed heavily by Caterpillar Inc.’s (CAT - Free Report) 8.7% drop. Overall, the S&P index recorded three new 52-week highs and no new low. Meanwhile, Nasdaq recorded 11 new highs and nine new lows.
Coronavirus to Weigh on Corporate Earnings
According to Johns Hopkins University reports, the United States has total more than 560,000 confirmed coronavirus cases. As fatalities reach more than 22,000, investors closely watch the impact of the virus on the economy. With fear of COVID-19 widespread still looming, major cities remain under lockdown and businesses stay shut.
Several companies have removed or lowered their earnings guidance and many have slashed their profit forecasts, citing the coronavirus outbreak as major issue. However, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, reported on Sunday that the outbreak was slowing down in America, giving optimism to the citizens. And also said that parts of the country may start to reopen in May.
For the first quarter as a whole, total earnings for S&P 500 companies are expected to drop 9% from the same period last year. Revenues, in the meanwhile, are likely to rise only 1.6% (Read more: What to Expect from Big Bank Earnings Amid the Coronavirus?).
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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