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Stocks retreat on renewed coronavirus concerns
24-Jan-20 16:10 ET

Dow -170.36 at 28989.64, Nasdaq -87.57 at 9314.93, S&P -30.07 at 3295.47

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

[BRIEFING.COM] The S&P 500 lost 0.9% on Friday in a steady decline from opening levels, as risk sentiment was dampened by the CDC confirming the second case of coronavirus in the U.S. The Nasdaq Composite lost 0.9%, the Dow Jones Industrial Average lost 0.6%, and the Russell 2000 lost 1.4%.

The day started in positive territory, with the Nasdaq even setting a new intraday high, after Intel (INTC 68.47, +5.15, +8.1%) and American Express (AXP 135.11, +3.74, +2.9%) impressed investors with earnings and guidance. The early lead dissipated amid a view that the coronavirus could impinge discretionary spending and earnings growth.

The orderly retreat throughout the day, however, suggested that the news was a good excuse to withdraw, or take profits, from an overbought market. The S&P 500 health care (-1.7%), financials (-1.4%), and consumer discretionary (-1.3%) sectors led the decline, while the utilities sector (+0.3%) was the lone holdout, as increased demand for Treasuries drove yields lower.

The 2-yr yield declined four basis points to 1.48%, and the 10-yr yield declined six basis points to 1.68%. The U.S. Dollar Index increased 0.2% to 97.86. WTI crude dropped 2.5% (-$1.40) to $54.21/bbl, as expectations for oil demand continued to weaken amid the spread of the coronavirus.

Shares of Boeing (BA 323.05, +5.26, +1.7%) were volatile following another series of headlines. Shares initially fell on news it was considering cutting production for its 787 Dreamliner, but then rallied on reports that the FAA is telling airlines it could approve the 737 MAX before mid-2020.

In other corporate news, Broadcom (AVGO 324.00, +4.35, +1.4%) secured two, separate multi-year agreements with Apple (AAPL 318.31, -0.92, -0.3%) to supply high-performance wireless components and modules.

On a related note, investors were dismayed to hear Skyworks Solutions (SWKS 122.31, -5.88, -4.6%) and Qorvo (QRVO 113.39, -5.29, -4.5%) may seek bids to acquire Broadcom's wireless chip unit, which could sell for $10 billion, according to Bloomberg.

Investors did not receive any notable economic data on Friday. Looking ahead, the New Home Sales report for December will released on Monday.

Nasdaq Composite +3.8% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +1.6% YTD
Russell 2000 -0.4% YTD


Market Snapshot
Dow 28989.64 -170.36 (-0.58%)
Nasdaq 9314.93 -87.57 (-0.93%)
SP 500 3295.47 -30.07 (-0.90%)
10-yr Note +4/32 1.687

NYSE Adv 861 Dec 2003 Vol 871.0 mln
Nasdaq Adv 827 Dec 2341 Vol 2.5 bln


Industry Watch
Strong: Utilities

Weak: Health Care, Financials, Consumer Discretionary


Moving the Market
-- Stock market retreats after second confirmed case of coronavirus in the U.S.

-- Intel (INTC) and American Express (AXP) rise on strong earnings, encouraging guidance

-- Continued weakness in energy stocks and oil prices



WTI crude drops 2.5% amid weaker demand expectations
24-Jan-20 15:25 ET

Dow -130.16 at 29029.84, Nasdaq -73.01 at 9329.49, S&P -27.04 at 3298.50
[BRIEFING.COM] The S&P 500 is off session lows and now trades lower by 0.8%. The Russell 2000 is down 1.4%.

One last look inside the S&P 500 shows ten sectors trading lower, including health care (-1.6%), financials (-1.4%), energy (-1.2%), and consumer discretionary (-1.2%). The utilities sector (+0.3%) remains the lone holdout amid the decline in yields.

WTI crude settled lower by $1.40 (-2.5%) to $54.21/bbl, as weaker expectations for oil demand due to the coronavirus continued to undercut prices.