Plus   Neg

U.S. Stocks Seeing Further Downside In Mid-Day Trading

wallstreet july20 24jan20 lt

Stocks have shown a significant downturn over the course of the trading session on Friday after failing to sustain an initial move to the upside. The major averages have pulled back well off their early highs and firmly into negative territory.

In recent trading, the major averages have seen further downside, falling to new lows for the session. The Dow is down 138.29 points or 0.5 percent at 29,021.80, the Nasdaq is down 56.02 points or 0.6 percent at 9,346.46 and the S&P 500 is down 23.14 points or 0.7 percent at 3,302.40.

The markets initially benefited from a positive reaction to earnings news from big-name companies like Intel (INTC) and American Express (AXP).

Shares of Intel are up by 8.4 percent after the semiconductor giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

Intel also provided upbeat guidance for the current year and said its board of directors approved a five percent cash dividend increase.

American Express is also seeing significant strength after the financial services giant reported better than expected fourth quarter results.

However, stocks came under pressure after the Centers for Disease Control and Prevention confirmed the second case of the Chinese coronavirus in the U.S.

The CDC said the patient, a woman in her 60s, recently returned from a trip to Wuhan, China, and is currently doing well and in stable condition.

The public health agency said another sixty-three patients in twenty-two states are being monitored for signs of infection.

The news led to a resurgence in concerns about the impact of the coronavirus outbreak after the World Health Organization helped tamp down worries on Thursday by saying it is too early to declare the situation a global health emergency.

Sector News

Energy stocks are turning in some of the market's worst performances amid a continued nosedive by the price of crude oil. Crude for March delivery is tumbling $1.43 to $54.16 a barrel.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index is down by 2.8 percent, the NYSE Arca Natural Gas Index is down by 2.5 percent and the NYSE Arca Oil Index is down by 1.6 percent.

Substantial weakness has also emerged among banking stocks, as reflected by the 2 percent slump by the KBW Bank Index.

Steel, biotechnology and healthcare stocks have also come under pressure, while gold stocks are moving higher along with the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved modestly higher, with several major markets closed for the Lunar New Year holidays. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index crept up by 0.1 percent and 0.2 percent, respectively.

Meanwhile, the major European markets showed strong moves to the upside on the day. While the French CAC 40 Index advanced by 0.9 percent, the U.K.'s FTSE 100 Index jumped by 1 percent and the German DAX Index surged up by 1.4 percent.

In the bond market, treasuries have moved significantly higher over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.3 basis points at 1.687 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT