Coronavirus is “global emergency” …and stocks rally?

Stock Market Update Thursday, January 30th, 2020

It was a rough morning.

The major indices opened lower and continued to drop in the morning. At one point, the S&P was down almost 1.0%.

The early losses were tied to ongoing coronavirus concerns and a rising death toll in China. There are now more than 8,000 confirmed cases and 171 deaths.

But after a morning slide there was a small rally during lunch. And in the afternoon the World Health Organization (WHO) declared the coronavirus a global health emergency.

But surprisingly, the reaction to the WHO announcement was a positive one. Mostly for 2 reasons:

  1. WHO did NOT recommend travel restrictions.
  2. The emergency classification allows WHO to use financial and political resources to tackle the spread of the virus.

After the news, stocks shot higher and rallied into the close. The DOW experienced a 368 point swing after erasing a 244 point loss and ending the day with a 124 point gain.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.3% gain. Up 10 points, the S&P ended at 3,284.
  • The DOW ended higher by 0.4%. Adding 124 points, the DOW closed at 28,859.
  • The NASDAQ was up 0.3%. With a 23 point gain, the NASDAQ finished at 9,299.

Crude Oil (CL) was down again and finished at 6-month lows. Down 2.2%, CL ended the day at $52.18 a barrel.

Coca-Cola (KO) was an earnings winner today, leading the DOW with a 3.3% gain.

Microsoft (MSFT) was the 2nd biggest gainer in the DOW, up 2.8% after an earnings beat. The company reported a 37% earnings gain and 14% increase in revenue.

Facebook (FB) was one of the biggest losers in the NASDAQ 100, down more than 8.0% after yesterday’s earnings report which revealed a big jump in expenses. But by the end of the day the stock had recovered a little and was sitting on a 6.1% loss

Traders will keep an eye on Amazon (AMZN) tomorrow after a huge earnings win for the company. The stock is up more than 12% in after-hours trading after beating earnings and revenue expectations.

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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