More COVID-19 cases were reported in China overnight
The Dow stumbled into the weekend with an 227-point loss. The blue-chip index breached the 29,000 level amid resurfacing coronavirus fears, after over 800 new cases were reported overnight in China. The S&P 500 and tech-rich Nasdaq also finished sharply lower, with FAANG stocks and the chip sector among the day's notable laggards. All three benchmarks finished with weekly losses of 1% or more.
Continue reading for more on today's market, including:
- Dropbox options were red hot after earnings.
- Coca-Cola gave a coronavirus update that isn't as bad as feared.
- Plus, Fitbit falls post-earnings; a big upgrade for CHWY; and SPX sounding a bullish signal.
The Dow Jones Industrial Average (DJI - 28,992.41) finished 227.6 points, or 0.8% lower for the day. United Technologies (UTX) paced the nine winners with a 1.1% gain, while Microsoft (MSFT) paced the 21 laggards with a 3.2% drop. For the week, the Dow ended 1.4% lower.
The S&P 500 Index (SPX - 3,337.75) shed 35.5 points, or 1.1%, while the Nasdaq Composite (IXIC - 9,576.59) lost 174.4 points, or 1.8%. The S&P lost 1.3% on the week, while the Nasdaq closed with a 1.6% weekly loss.
The Cboe Volatility Index (VIX - 17.08) gained 1.5 point, or 9.8%. It ended the week up 24.9%.
5 Items on Our Radar Today
- Elon Musk's SpaceX company is looking to raise about $250 million at a price of $220 a share, increasing SpaceX’s market value to around $36 billion. The company is about to enter development of three important projects; Crew Dragon, Starlink and Starship. (CNBC)
- The 10-year U.S. Treasury yields’ week-long slump continues, as the number of coronavirus cases increased. It was also reported that the 30-year bond yield fell to 1.9%, a new record all-time low. (MarketWatch)
- Fitbit stock took a hit after a lackluster earnings report.
- RBC likes the risk-reward outlook of Chewy stock.
- Here's why stocks could see more upside soon.
Data courtesy of Trade-Alert
Oil Stays Strong; Gold Gets Seven Straight
Crude futures snapped a two-day win streak today, after talks between Saudi Arabia and Russia broke down over a decision to cut oil production. April-dated oil shed 50 cents, or 0.9% to settle at $53.38 per barrel. For the week, black gold added 2%.
Gold futures made it seven straight wins today, as the sliding government bond yields adds support for the safe-haven asset. Gold for April delivery gained $28.30, or 1.8%, to settle at $1,648.80 an ounce. Gold finished the week up 3.9%, its best week since June.