Dow Cools as Coronavirus Outbreak Takes Grasp of Markets

A number of China-focused stocks were hit hard

by Josh Selway

Published on Jan 24, 2020 at 3:11 PM
Updated on Jan 24, 2020 at 3:14 PM

Stocks, as of this writing, are pacing to close the holiday-shortened week in the red, which would snap a six-week win streak for the Nasdaq Composite (IXIC). The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are themselves set to snap back-to-back weekly win streaks, as traders this week focused on a flurry of earnings releases, more Boeing (BA) drama, and the outbreak of the coronavirus in China and the U.S.

Blue-Chip Earnings Overshadowed By Virus Fears

Earnings season heated up in a major way, as traders considered results from a number of Dow components. IBM (IBM) was one name to enjoy a positive earnings reaction, and fellow tech name Intel (INTC) joined in the winners' circle with Friday's post-earnings gains. Netflix (NFLX) was also on the earnings calendar, and options traders took notice.

The coronavirus outbreak drove much of the trading during the week, however, as more and more headlines emerged about the virus. By Friday, two cases were confirmed in the U.S., sending the Dow and its index peers sharply lower. A number of China-based stocks were under pressure throughout the week as a result of these headwinds, and Disney shares were hit, as well. We made sure to call out one stock that benefited from all the buzz, however.

Stocks to Watch with Fed Ahead

As for the data we were pulling this week, numbers were pointing us to drugmaker Ionis Pharmaceuticals (IONS), which is flashing a signal that's never been wrong. From a more broader perspective, this week's Indicator of the Week featured a breakdown of the best stock charts on Wall Street right now,

Having a firm grasp on the market is crucial right now, given next week brings another Fed meeting. Of course, there will be a number of high-profile earnings releases, as well, including Apple's (AAPL) post-close report on Tuesday.


A Schaeffer's exclusive

11 Stocks to Buy Before Leap Day

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.
Sudden C-Suite Shuffle Weighs on Disney Stock
DIS is trading at its lowest point since April
Papa John's Stock Pivots Lower After Guidance Cut
The pizza maker's earnings and revenue topped forecasts, though
Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.