Wild ride for stocks: coronavirus fears and analyst upgrades

Stock Market Update Monday, February 3rd, 2020

Stocks kicked off the week with a wild day of trading.

Coronavirus remains a concern for traders, with the death toll rising to 361 over the weekend. This makes the coronavirus more deadly than the SARS outbreak in 2002-2003. There was also news of the first coronavirus death outside of China (in the Philippines).

And on on the first trading day since January 23rd (Chinese markets were closed for a Chinese holiday), the Shanghai Composite dropped 7.7%.

But stocks shook off a disappointing Asia session. And the major indices were up nicely at the open.

Stocks got another boost after ISM Manufacturing PMI data beat analyst expectations. The 50.9 reading was the first reading above 50.0 in six months (readings above 50 indicate industry expansion).

And just like that the major indices were up 1.0%+.

But after the morning rally, stocks pulled back on more coronavirus fears (a passenger 6 days into a cruise tested positive for the virus). And the major indices chopped around for the rest of the session.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.7% gain. Up 23 points, the S&P ended at 3,249.
  • The DOW ended higher by 0.5%. Adding 144 points, the DOW closed at 28,400.
  • The NASDAQ was up 1.4%. With a 124 point gain, the NASDAQ finished at 9,274.

Crude Oil (CL) dropped for the 4th day in a row. Down 2.9%, CL ended the day at $50.09 a barrel. During the day, Crude Oil dipped below $50 a barrel for the first time in more than a year.

Analyst upgrades helped a few big names today.

Nike (NKE) was up 3.1% after a JP Morgan and USB upgrade. And Tesla (TSLA) jumped 19.9% with its biggest 1-day jump for Tesla in 6 years after an analyst upgrade.

Carnival Corporation (CCL) was up earlier in the session. But reports that a cruise passenger tested positive for coronavirus sent the stock lower. The stock finished with a 1.8% loss.

But there were also some stocks helped out by the virus.

Gilead Sciences (GILD) jumped 5.0% after reports that the company is testing a treatment for the virus.

Alphabet (GOOG) will be in the spotlight tomorrow after reporting disappointing earnings after the bell. The stock is down 4.0% in after-hours trading.

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.

Related Posts

Crazy Trading: DOW down 360 points and NASDAQ makes new record highs!

Shocking: More than 3MM Coronavirus cases and stocks rally?

Stocks lower as WHO says “global death toll begins to rise”

DOW gains 460 points after China’s impressive 6% rally

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}