New record highs, but it doesn’t make sense…

Stock Market Update Tuesday, February 11th, 2020

Stocks opened higher and rallied this morning.

But after hitting session highs around 10:45am ET, stocks retreated.

In the morning, Fed Chair Jerome Powell testified in front of the House Financial Services committee. Powell said that the Fed is “closely monitoring” the coronavirus and how it might impact the global economy. But he said that it’s “too early to say” how the virus might effect the U.S. economy.

Trading was sideways during lunch. Then another drop in the afternoon left the stocks near session lows.

But the pullback from session highs didn’t stop the S&P and NASDAQ from closing at new records.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.2% gain. Up 6 points, the S&P ended at 3,358.
  • The DOW ended flat. The DOW closed at 29,276.
  • The NASDAQ was up 0.1%. With an 11 point gain, the NASDAQ finished at 9,639.

Crude Oil (CL) managed to close higher, just above the $50 mark. Up 0.9%, CL ended the day at $50.01 a barrel.

The impact of the coronavirus on the global economy is still unknown. But companies are bracing for lower sales because of the virus.

Under Armour (UA) said that the outbreak might lower sales by $50 to $60 million!

Under Armour finished the day with a 16.7% loss after the announcement and weaker than expected Q4 earnings.

American Airlines (AAL) announced that it will extend its flight cancellations to China until late April. The stock actually finished higher by 3.7% after the news.

And Hilton Hotels (HLT) announced that it has closed 150 hotels in China because of the coronavirus. Hilton finished the day with a 1.4% gain.

Tomorrow we’ll hear from Fed Chair Powell again, this time with his testimony before the Senate Banking Committee.

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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