Worries over Coronavirus push the DOW below 29,000 again

Stock Market Update Sunday, January 26th, 2020

Stocks had a rough week with traders worried about the coronavirus. 

On Monday, exchanges were closed for Martin Luther King Jr. day.

Then on Tuesday, stocks started the short trading week with a loss.

Wednesday opened strong, and the S&P and NASDAQ made new record highs. But stocks retreated after the push to new highs. And by the close, most of the day’s gains were gone.

Thursday was almost the exact opposite of Wednesday’s trading session.

After opening the day with a loss, stocks quickly sold off. But a steady rally throughout the day helped erase early losses. And eventually, stocks closed near session highs.

But Friday was the real mover of the week (and had the most volume).

Stocks opened higher then quickly dropped on coronavirus fears. And the S&P finished with its worst close since January 15th. 

With Friday’s loss, the major indices dropped below some key levels. The S&P finished below 3,300 and the DOW dropped below 29,000.

Here’s what traders were focused on:

  • Coronavirus – On Friday, the CDC confirmed the 2nd case of the virus in the U.S. (over the weekend a 3rd case in California was confirmed). The virus could have a major impact on spending and travel, and this has traders worried. On Saturday, Chinese Vice Minister of Transport said that travel on the first day of the Lunar New Year is down 28.8% from a year ago. And the government is encouraging people to stay home and restricting travel for millions. 
  • Earnings – According to FactSet, a little more than 16% of S&P 500 companies have reported earnings. And of these, companies, 70% have reported better than expected numbers.

Here’s where the major indices ended the day:

  • The S&P finished with a 1.0% loss. Down 34 points, the S&P ended at 3,295.
  • The DOW ended lower by 1.2%. Dropping 358 points, the DOW closed at 28,990.
  • The NASDAQ was down 0.8%. With a 74 point loss, the NASDAQ finished at 9,315.

Crude Oil (CL) finished lower for the 3rd week straight. Down 7.3%, CL ended the week at $54.28 a barrel. Crude Oil is down more than 11% this year, trading back back levels we haven’t seen in 3 months. 

Intel (INTC) jumped on Friday in spite of the overall market drop. The stock finished with an 8.1% gain after reporting better than expected earnings.

American Express (AXP) was an earnings winner as well, up 2.9% on strong earnings. The rally helped AXP make new record highs. 

This upcoming week the coronavirus and earnings will remain in the spotlight. We’ll also hear from the Fed with a FOMC Statement and Press Conference Wednesday afternoon.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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