Stocks plunge into correction territory as coronavirus crisis deepens

Trump: Stock market will recover from coronavirus fears

President Trump isn’t concerned about the recent dip in the stock market and says the American consumer is very strong.

U.S. equity markets plunged into correction territory Thursday as President Trump’s announcement of a coronavirus task force did little to assuage investors’ fears of a deepening crisis.

Continue Reading Below

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.

TickerSecurityLastChangeChange %
SP500S&P 5003044.59-71.80-2.30%
I:DJIDOW JONES AVERAGES26180.53-777.06-2.88%
I:COMPNASDAQ COMPOSITE INDEX8745.008911-235.77-2.63%

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.

TickerSecurityLastChangeChange %
MSFTMICROSOFT CORP.166.21-3.96-2.33%
AAPLAPPLE INC.282.00-10.64-3.64%
HPHELMERICH & PAYNE INC36.45-2.44-6.27%

Chipmakers remained under pressure with AMD, Intel and Nvidia all adding to recent losses.

TickerSecurityLastChangeChange %
AMDADVANCED MICRO DEVICES INC.43.84-3.65-7.69%
INTCINTEL CORPORATION57.62-2.04-3.41%
NVDANVIDIA CORPORATION255.17-12.32-4.60%

Airlines, online travel agencies and casino operators were also lower.

TickerSecurityLastChangeChange %
AALAMERICAN AIRLINES GROUP INC.20.25-2.06-9.25%
DALDELTA AIR LINES INC.46.94-2.65-5.34%
BKNGBOOKING HOLDINGS INC.1,704.59+26.39+1.57%
WYNNWYNN RESORTS LIMITED106.38-4.38-3.95%
MGMMGM RESORTS INTERNATIONAL25.36-1.35-5.05%

Oil majors Exxon Mobil and Chevron were weaker as West Texas Intermediate crude oil futures for April delivery were down 3.1 percent at $47.20 a barrel.

TickerSecurityLastChangeChange %
XOMEXXON MOBIL CORPORATION51.40-1.61-3.04%
CVXCHEVRON CORP.95.42-2.62-2.67%

Elsewhere, drugmakers searching for a coronavirus vaccine continued to outperform, with Gilead Sciences, Moderna, Novavax and Nanoviricides all higher.

TickerSecurityLastChangeChange %
GILDGILEAD SCIENCES INC.75.49+0.79+1.06%
NVAXNOVAVAX INC.10.93+1.71+18.49%
NNVCNANOVIRICIDES INC11.60+2.43+26.54%
MRNAMODERNA INC.33.73+4.57+15.67%

Barrick Gold and Newmont mining gained as gold futures for April delivery jumped 0.7 percent to above $1,654 an ounce.

TickerSecurityLastChangeChange %
GOLDBARRICK GOLD CORP.20.7901-0.23-1.09%
NEMNEWMONT GOLDCORP CORPORATION49.41+0.01+0.02%

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.

TickerSecurityLastChangeChange %
BBYBEST BUY79.05-3.13-3.81%
JCPJ.C. PENNEY0.68-0.05-6.71%

U.S. Treasurys continued their ascent, pushing the yield on the 10-year note to a low of 1.24 percent. The benchmark yield rallied, however, after the government confirmed an earlier estimate of 2.1 percent GDP growth in the fourth quarter.

In Europe, France’s CAC was down 3.2 percent while Germany’s DAX and Britain’s FTSE were lower by 3.6 percent and 3.2 percent, respectively.

CLICK HERE TO READ MORE ON FOX BUSINESS

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.

Source: Read Full Article