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S&P 500 and Nasdaq eke out gains as WHO eases virus worries
23-Jan-20 16:15 ET
Dow -26.18 at 29160.00, Nasdaq +18.71 at 9402.50, S&P +3.79 at 3325.54

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 lost as much as 0.6% on Thursday amid concerns about growth and valuation, but an intraday rebound gathered steam after the World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus. The benchmark index finished the session up 0.1%.

The Nasdaq Composite (+0.2%) closed at a record high, and the Russell 2000 (+0.03%) eked out a slim gain. The Dow Jones Industrial Average (-0.1%) edged lower amid negative reactions to earnings reports from Travelers (TRV 134.19, -7.15, -5.1%) and Procter & Gamble (PG 124.99, -0.57, -0.5%).

China unnerved the market after it locked down several cities to contain the spreading of the coronavirus ahead of the Lunar New Year festivities. The swift decision rekindled concerns that economic activity would slow down and possibly affect the earnings prospects that current stock valuations are based on.

These growth concerns were manifested in the continued depreciation of oil ($55.61, -1.07, -1.9%) and the flattening activity in the U.S. Treasury yield curve, although the steady advance in the S&P 500 industrials sector (+1.1%) somewhat undermined the slower growth narrative. The real estate (+1.0%) and utilities (+0.9%) sectors benefited from lower yields.

The industrial sector outperformed amid gains in Union Pacific (UNP 187.19, +6.26, +3.5%), which released a well-received earnings report, and General Electric (GE 11.77, +0.40, +3.5%), which was upgraded to Overweight from Equal-Weight at Morgan Stanley. A rebound in Boeing (BA 317.79, +8.79, +2.8%) also helped.

Sectors steadily cut losses throughout the afternoon, partly due to the idea that the coronavirus is not yet something to fear and that actions are being taken to mitigate its effects. Ironically, the health care sector (-0.5%) was today's laggard.

Separately, Comcast (CMCSA 45.65, -1.79, -3.8%) beat earnings estimates, but shares still finished lower. Comcast said it expects video subscriber losses to increase in 2020, which contributed to the 7% rebound in shares of Netflix (NFLX 349.60, +23.60, +7.2%).

As previously stated, the U.S. Treasury market experienced some curve-flattening activity. The 2-yr yield increased one basis point to 1.52%, while the 10-yr yield declined three basis points to 1.74%. The U.S. Dollar Index increased 0.2% to 97.68.

Reviewing Thursday's economic data:

Initial claims for the week ending January 18 increased by 6,000 to 211,000 (Briefing.com consensus 215,000). Continuing claims for the week ending January 11 decreased by 37,000 to 1.731 million.
The key takeaway from the report is that it covered the period in which the survey for the January employment report is conducted. The low level of initial claims, then, should forge expectations for another decent gain in nonfarm payrolls.
The Conference Board's Leading Economic Index (LEI) declined 0.3% m/m in December (Briefing.com consensus -0.2%) following an upwardly revised 0.1% increase (from 0.0%) in November. December was the fourth time in the last five months that the LEI declined.
The key takeaway from the report is the Conference Board's indication that weaknesses among the leading indicators have become slightly more widespread than the strengths.

Investors will not receive any notable economic data on Friday.

Nasdaq Composite +4.8% YTD
S&P 500 +2.9% YTD
Dow Jones Industrial Average +2.2% YTD
Russell 2000 +1.0% YTD

Market Snapshot
Dow 29160.00 -26.18 (-0.09%)
Nasdaq 9402.50 +18.71 (0.20%)
SP 500 3325.54 +3.79 (0.11%)
10-yr Note +26/32 1.730
NYSE Adv 1425 Dec 1402 Vol 948.5 mln
Nasdaq Adv 1415 Dec 1760 Vol 2.5 bln

Industry Watch
Strong: Industrials, Utilities, Real Estate
Weak: Health Care, Energy

Moving the Market

-- Stocks cut intraday losses, Nasdaq closes at record high

-- World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus

-- Relative strength in the industrials sector

-- Oil prices continued to fall amid weaker expectations for demand

WTI crude falls 2% on demand concerns
23-Jan-20 15:25 ET
Dow -20.22 at 29165.96, Nasdaq -18.48 at 9365.31, S&P +2.89 at 3324.64

[BRIEFING.COM] The S&P 500 currently trades higher by 0.1%, while the Dow trades lower by 0.1%.

One last look inside the S&P 500 sectors shows industrials (+1.0%), real estate (+0.8%), and utilities (+0.7%) outperforming, while health care (-0.7%) and communication services (-0.3%) underperform.

WTI crude fell $1.07 (-1.9%) to $55.61/bbl, although this settlement price was well above its intraday 3.4% decline.