Coronavirus fears spark stock selloff
FOX Business’ Edward Lawrence says President Trump wants more money from Congress to contain the coronavirus if it takes a foothold in the U.S.
U.S. equity markets ticked upward Wednesday following a two-day coronavirus-fueled selloff that wiped out $1.7 trillion of shareholder wealth.
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All three of the major averages held modest gains, with the S&P 500 recouping some of the damage done from its worst 2-day selloff since August 2015.
The coronavirus outbreak has sickened 80,239 people worldwide and killed 2,700, according to the latest World Health Organization data.
|I:DJI||DOW JONES AVERAGES||27327.36||+246.00||+0.91%|
|I:COMP||NASDAQ COMPOSITE INDEX||9119.460841||+153.85||+1.72%|
Travel-related stocks will draw scrutiny after American Airlines plunged 16.9 percent, and Booking Holdings, Norwegian Cruise Line Holdings and Hilton Hotels are likely to be under a spotlight, too.
|AAL||AMERICAN AIRLINES GROUP INC.||23.31||+0.19||+0.82%|
|BKNG||BOOKING HOLDINGS INC.||1,726.68||+0.10||+0.01%|
|HLT||HILTON WORLDWIDE HOLDINGS INC.||100.40||+1.52||+1.54%|
Drugmakers Gilead Sciences and Novavax gained as they raced to develop a treatment for the virus.
|GILD||GILEAD SCIENCES INC.||71.60||+1.50||+2.15%|
Meanwhile, Disney shares dropped after Bob Iger stepped down from his role as CEO. Iger, who will serve as executive chairman through 2021, will be replaced by Bob Chapek, chairman of parks, experiences and products.
|DIS||WALT DISNEY COMPANY||128.31||+0.12||+0.09%|
On the earnings front, Virgin Galactic reported its fourth-quarter loss widened from a year ago and said its top priority is sending founder Richard Branson to space.
Lowe’s reported disappointing same-store sales and gave full-year earnings guidance that fell short of Wall Street estimates.
Wendy’s fourth-quarter profit spiked 41 percent from a year earlier, driven by higher sales at company-operated restaurants and increased franchise royalties.
|SPCE||VIRGIN GALACTIC HOLDINGS INC.||32.93||-1.11||-3.25%|
|LOW||LOWE’S COMPANIES INC.||119.92||+1.40||+1.18%|
|WEN||THE WENDY’S COMPANY||22.94||-0.02||-0.09%|
Commodities were weaker, with West Texas Intermediate crude oil down 1.4 percent at $49.20 a barrel and gold off 0.2 percent at $1,646 an ounce.
U.S. Treasurys fell, causing the yield on the 10-year note to climb by 3 basis points to 1.36 percent. The yield reached a record low on Tuesday.
In Europe, Germany’s DAX fell 0.7 percent, while Britain’s FTSE and France’s CAC were both lower by 0.5 percent.
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Asian markets were lower across the board, with China’s Shanghai Composite and Japan’s Nikkei both shedding 0.9 percent and Hong Kong’s Hang Seng losing 0.8 percent.
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