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Wall Street routed on Friday as the deadly coronavirus, which originated from China, is quickly spreading several parts of the world. Investors’ remained concerned about the economic impact of this virus globally, especially on China. Several economists have forecasted that the economic impact of coronavirus may surpass the impact of SARS, which broke-out on 2002-2003. All three major stock indexes ended in the red.
The Dow Jones Industrial Average (DJI) tumbled 2.1% or 603.41 points to close at 28,256.03. The S&P 500 tanked 1.8% to close at 3,225.52. Meanwhile, the Nasdaq Composite Index closed at 9,150.94, shedding 1.6%. The fear-gauge CBOE Volatility Index (VIX) increased 21.6% to close at 18.84. A total of 9.03 billion shares were traded Friday, higher than the last 20-session average of 7.61 billion. Decliners outnumbered advancers on the NYSE 3.58-to-1 ratio. On Nasdaq, a 3.35-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow closed in negative territory with 26 components of the 30-stock index closing in the red while 4 ended in green. The Nasdaq Composite also ended in the negative territory due to weak performance by large-cap tech stocks. The S&P 500 finished in the red. The Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLE) lost 2.7% and 3.1%, respectively. Notably, ten out of a total 11 sectors of the benchmark index closed in the red.
U.S. Declares Public Health Emergency
On Jan 31, the coronavirus task force of the U.S. government declared a public-health emergency in the country. Accordingly, from Feb 2, all returning U.S. citizens who traveled to Hubei Province of China, over the last 14 days will undergo mandatory quarantine for 14 days. Moreover, the Trump administration will not allow foreign nationals who "pose a risk" at spreading the virus into the United States. Following government decision, several major U.S. airlines stopped flying t China.
The Department of Commerce reported that the U.S. consumer spending grew 0.3% in December, in line with the consensus estimate. However, consumer spending grew 0.4% in November. The PCE inflation index rose 0.3% in December and 1.6% year over year. The core PCE inflation (excluding food and energy items) grew 0.25 in December, in line with the consensus estimate. The core PCE inflation increased 1.6% year over year. Saving rate dipped to 7.7% in December from a revised metric of 7.8% in the previous month.
Weekly Roundup
Last week was a disappointing one for Wall Street. All three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – plunged 2.5%, 2.1% and 1.8%, respectively. The pathetic result was owing tothe severe volatility stemming from the onslaught of the deadly coronavirus in China, which has now spread over 20 countries in the world. Per the government of China, more than 10,000 people are infected in that country of whom 361 have died.
Monthly Roundup
It was a mixed January for Wall Street after a fabulous 2019. The Dow and the S&P 500 lost 1% and 0.2%, respectively, while the Nasdaq Composite gained 2%. The first half of January continued the previous year’s rally supported by the singing of the interim trade deal between the United States and China. However, the second half was dampened by severe volatility due to the outbreak of corona virus. Market participants are divided as to whether the recent downturn is a stock market correction or the beginning of a larger decline.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Image: Shutterstock
Stock Market News for Feb 3, 2020
Wall Street routed on Friday as the deadly coronavirus, which originated from China, is quickly spreading several parts of the world. Investors’ remained concerned about the economic impact of this virus globally, especially on China. Several economists have forecasted that the economic impact of coronavirus may surpass the impact of SARS, which broke-out on 2002-2003. All three major stock indexes ended in the red.
The Dow Jones Industrial Average (DJI) tumbled 2.1% or 603.41 points to close at 28,256.03. The S&P 500 tanked 1.8% to close at 3,225.52. Meanwhile, the Nasdaq Composite Index closed at 9,150.94, shedding 1.6%. The fear-gauge CBOE Volatility Index (VIX) increased 21.6% to close at 18.84. A total of 9.03 billion shares were traded Friday, higher than the last 20-session average of 7.61 billion. Decliners outnumbered advancers on the NYSE 3.58-to-1 ratio. On Nasdaq, a 3.35-to-1 ratio favored declining issues.
How Did The Benchmarks Perform?
The Dow closed in negative territory with 26 components of the 30-stock index closing in the red while 4 ended in green. The Nasdaq Composite also ended in the negative territory due to weak performance by large-cap tech stocks. The S&P 500 finished in the red. The Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLE) lost 2.7% and 3.1%, respectively. Notably, ten out of a total 11 sectors of the benchmark index closed in the red.
U.S. Declares Public Health Emergency
On Jan 31, the coronavirus task force of the U.S. government declared a public-health emergency in the country. Accordingly, from Feb 2, all returning U.S. citizens who traveled to Hubei Province of China, over the last 14 days will undergo mandatory quarantine for 14 days. Moreover, the Trump administration will not allow foreign nationals who "pose a risk" at spreading the virus into the United States. Following government decision, several major U.S. airlines stopped flying t China.
Consequently, shares of United Airlines Holdings Inc. (UAL - Free Report) , American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines Inc. (DAL - Free Report) declined 3.8%, 3.2% and 2.4%, respectively. Delta Air Lines carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
The Department of Commerce reported that the U.S. consumer spending grew 0.3% in December, in line with the consensus estimate. However, consumer spending grew 0.4% in November. The PCE inflation index rose 0.3% in December and 1.6% year over year. The core PCE inflation (excluding food and energy items) grew 0.25 in December, in line with the consensus estimate. The core PCE inflation increased 1.6% year over year. Saving rate dipped to 7.7% in December from a revised metric of 7.8% in the previous month.
Weekly Roundup
Last week was a disappointing one for Wall Street. All three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – plunged 2.5%, 2.1% and 1.8%, respectively. The pathetic result was owing tothe severe volatility stemming from the onslaught of the deadly coronavirus in China, which has now spread over 20 countries in the world. Per the government of China, more than 10,000 people are infected in that country of whom 361 have died.
Monthly Roundup
It was a mixed January for Wall Street after a fabulous 2019. The Dow and the S&P 500 lost 1% and 0.2%, respectively, while the Nasdaq Composite gained 2%. The first half of January continued the previous year’s rally supported by the singing of the interim trade deal between the United States and China. However, the second half was dampened by severe volatility due to the outbreak of corona virus. Market participants are divided as to whether the recent downturn is a stock market correction or the beginning of a larger decline.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>