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Stock Market News for Jan 22, 2020

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Benchmarks closed in the red on Tuesday after the first case for coronavirus within the United States was reported by the Centers for Disease Control.

The Dow Jones Industrial Average (DJI) fell 152.06 points or 0.5%, to close at 29,196.04and the S&P 500 dropped 8.83 points or 0.3% to close at of 3,320.79. While, the Nasdaq Composite Index closed at 9,370.81, sliding 18.14 points or 0.2%. The fear-gauge CBOE Volatility Index (VIX) increase 6.2% to close at 12.85. Declining issues outnumbered advancing one for a 1.56-to-1 ratio on the NYSE and a 1.59-to-1 ratio on the Nasdaq favored decliners.

How Did the Benchmarks Perform?

The Dow’s decline was weighed heavily by The Boeing Company’s (BA - Free Report) drop of 3.3% as the company reported that 737 MAX might not win approval to return to service until June or July. The blue-chip index declined for the first time in six sessions. On the other hand, 7 out of 11 major sectors of the S&P 500 ended in the red. .

Overall, the S&P 500 index recorded 89 new 52-week highs whereas two new lows. And the Nasdaq recorded 140 new highs and 37 new lows.

Coronavirus Reaches America, One Infected

The outbreak of Coronavirus in China just before the Chinese lunar new year has hit travel-related stocks the most. The virus that originated in the Wuhan region of China has killed six people so far and affected around 300 people according to reports from Chinese state media and health officials.

However, Wall Street was hit hard after the U.S. Centers for Disease Control and Prevention announced the first case of the coronavirus in Seattle. Additionally, the World Health Organization is considering declaring an international public health emergency over the coronavirus, quite similar to what it did for swine flu and Ebola.

With the Chinese lunar new year right around the corner many are expected to travel in and out of China to different parts of the world. Shares of leisure and travel companies like Las Vegas Sands Corp. LVS and Wynn Resorts, Limited WYNN dropped 5.4% and 6.1% respectively. Both the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Airlines were also hit hard as evident from United Airlines Holdings, Inc. UAL drop of 4.4% along with American Airlines Group Inc.’s AAL shares sliding 4.2%.

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