U.S. equity markets plunged into correction territory Thursday before bouncing off the worst levels of the session as President Trump’s announcement of a coronavirus task force did little to assuage investors’ fears of a deepening crisis.
The early selling had all three major averages down at least 10 percent from their February peaks. Both the S&P 500 and the Dow Jones Industrial Average were on track for their sixth straight day of losses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 3030.63 | -85.76 | -2.75% |
| I:DJI | DOW JONES AVERAGES | 26077.78 | -879.81 | -3.26% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8711.94581 | -268.83 | -2.99% |
The indexes must close above the following levels to avoid entering a technical correction, according to Dow Jones Market Data group:
- S&P 500: 3,047.54
- Dow Jones Industrial Average: 26,596.28
- Nasdaq Composite: 8,835.46
On Wednesday evening, Trump said Vice President Mike Pence would head a task force to combat the outbreak and that his administration was “ready to do whatever we have to” if the virus threat grows. Hours after Trump’s press briefing, U.S. health officials announced the first case in which they were unable to determine the source of infection.
Overnight, South Korea reported 505 new cases and Japan announced the closure of all schools in the country starting March 2. Elsewhere, Saudi Arabia suspended religious pilgrimages to Mecca and elsewhere.
The coronavirus has infected at least 81,109 people globally and killed 2,762, according to the latest figures from the World Health Organization.
Looking at U.S. stocks, Microsoft warned the coronavirus outbreak would impact the supply chain for its “Personal Computing” unit, which accounts for about one-third of its revenue. Other tech giants, including Apple and HP, have already warned about supply-chain disruptions.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 161.51 | -8.66 | -5.09% |
| AAPL | APPLE INC. | 278.85 | -13.80 | -4.72% |
| HP | HELMERICH & PAYNE INC | 37.84 | -1.05 | -2.71% |
Chipmakers remained under pressure with AMD, Intel and Nvidia all adding to recent losses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMD | ADVANCED MICRO DEVICES INC. | 44.94 | -2.56 | -5.38% |
| INTC | INTEL CORPORATION | 56.90 | -2.75 | -4.62% |
| NVDA | NVIDIA CORPORATION | 259.63 | -7.86 | -2.94% |
Airlines, online travel agencies and casino operators were mostly lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 21.36 | -0.95 | -4.28% |
| DAL | DELTA AIR LINES INC. | 49.32 | -0.27 | -0.54% |
| EXPE | EXPEDIA GROUP, INC. | 100.01 | -1.18 | -1.16% |
| WYNN | WYNN RESORTS LIMITED | 112.92 | +2.17 | +1.95% |
| MGM | MGM RESORTS INTERNATIONAL | 26.02 | -0.69 | -2.60% |
Oil majors Exxon Mobil and Chevron were weaker as West Texas Intermediate crude oil futures for April delivery fell 3.4 percent to $47.09 a barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORPORATION | 50.64 | -2.37 | -4.47% |
| CVX | CHEVRON CORP. | 95.74 | -2.30 | -2.35% |
Elsewhere, drugmakers searching for a coronavirus vaccine were mixed with Gilead Sciences and Moderna lower while Novavax and Nanoviricides gained.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GILD | GILEAD SCIENCES INC. | 73.02 | -1.68 | -2.25% |
| NVAX | NOVAVAX INC. | 11.12 | +1.91 | +20.66% |
| NNVC | NANOVIRICIDES INC | 9.55 | +0.38 | +4.14% |
| MRNA | MODERNA INC. | 26.40 | -2.76 | -9.46% |
Barrick Gold and Newmont mining gave up their early gains as gold futures for April was little changed at $1,640 an ounce.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOLD | BARRICK GOLD CORP. | 19.895 | -1.13 | -5.35% |
| NEM | NEWMONT GOLDCORP CORPORATION | 46.92 | -2.48 | -5.02% |
On the earnings front, Best Buy reported better-than-expected fourth-quarter results, which were boosted by strong sales of headphones, smartphones and tablets.
J.C. Penney reported a surprise profit and same-store sales that fell less than Wall Street was anticipating.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBY | BEST BUY | 79.85 | -2.33 | -2.84% |
| JCP | J.C. PENNEY | 0.68 | -0.05 | -6.88% |
U.S. Treasurys continued their ascent, pushing the yield on the 10-year note to a record low of 1.296 percent.
In Europe, Britain’s FTSE lost 3.5 percent while Germany’s DAX and France’s CAC were lower by 3.3 percent and 3.2 percent, respectively.
Asian markets finished mixed with Japan’s Nikkei tumbling 2.1 percent while China’s Shanghai Composite and Hong Kong’s Hang Seng edged up 0.1 percent and 0.3 percent, respectively.
