Closing Comment — January 23, 2020
DJIA: 29,160.09, down 26.18
S&P 500: 3,325.54, up 3.79
Nasdaq Composite: 9,402.48, up 18.71
Stocks Finish Mixed On Thursday
Stocks rebounded from session lows to end mixed on Thursday, as investors digested corporate earnings results and developments on China’s coronavirus. Reports showed the World Health Organization (WHO) called the outbreak a local Chinese emergency, helping to calm fears of an international epidemic. However, stocks in China fell the most since May overnight after authorities put two cities on lockdown in an attempt to contain the spread of the respiratory disease. On Wall Street, the Dow slipped 26 points. The S&P 500 added 0.1%, while the Nasdaq Composite rose 0.2%.
Six of 11 S&P 500 sectors finished in negative territory, with Health Care and Energy sectors leading laggards. Industrials outperformed following a rebound in airline companies. American Airlines gained 5.2%, while United Airlines advanced 1.9%. In earnings, Texas Instruments rose 0.4% after the chipmaker posted positive quarterly results and improved its current-quarter revenue forecast. Proctor & Gamble slipped 0.8% after the consumer products giant missed Wall Street sales expectations for the first time in five quarters, but increased its full-year guidance. Comcast lost 3.7% after reporting a drop in video-subscribers. Apparel-maker VF Corp. slumped 9.6% following disappointing quarterly sales and a reduction to its full-year outlook.
Treasuries strengthened, with the yield on the 10-year note down three basis points to 1.73%. On the data front, initial jobless claims came in at 211,000 in the most recent week. Separately, the Leading Index of Economic Indicators declined more than expected in December. In commodities, WTI crude lost 2.0% to $55.58/barrel. COMEX gold added 0.3% to $1,561.40/ounce.
Midday Comment — January 23, 2020
DJIA: 29,012.01, down 174.26
S&P 500: 3,309.12, down 12.63
Nasdaq Composite: 9,367.05, down 16.72
Stocks Lower Near Midday Thursday
Stocks are lower near mid-session Thursday, as investors continue to digest corporate earnings results. The Dow is falling 174 points, while the S&P 500 is off 0.4%. The Nasdaq Composite is down 0.2%. Market participants are also monitoring updates on the Wuhan coronavirus. Overnight, Chinese stocks fell the most since May after authorities put two cities on lockdown in an attempt to contain the spread of the respiratory disease.
Eight of 11 S&P 500 sectors are trading in negative territory near midday, with the Financials and Energy sectors leading decliners. In earnings, Texas Instruments is down 0.7% despite the chipmaker posting positive quarterly results and improving its current-quarter revenue forecast. Procter & Gamble is declining 1.5% after the consumer products giant missed Wall Street sales expectations for the first time in five quarters, but increased its full-year guidance. Comcast is slipping 3.5% after reporting a drop in video-subscribers. Airline stocks are being pressured amid potential repercussion of the Wuhan coronavirus, with both American Airlines and Delta Airlines both off 0.9%. Breadth is negative on issues by 2:1 on both the NYSE and the Nasdaq. Composite NYSE volume is 1.5 billion shares.
Treasuries are strengthening, with the yield on the 10-year note down four basis points to 1.72%. On the data front, initial jobless claims came in at 211,000 in the most recent week. Separately, the Leading Index of Economic Indicators declined more than expected in December. In commodities, WTI crude is losing 2.1% to $54.86/barrel. COMEX gold is adding 0.5% to $1,563.80/ounce.
Opening Comment — January 23, 2020
DJIA: 29,186.27
S&P 500: 3,321.75
Nasdaq Composite: 9,383.77
U.S. Futures Lower; Earnings in Focus
U.S. futures are set to open slightly lower on Thursday, as investors continue to digest corporate earnings results and monitor updates on the Wuhan coronavirus. China has put two cities on lockdown in an attempt to contain the spread of the virus. The Dow is dipping 0.3%, while the S&P 500 is off 0.2% in pre-market action. The Nasdaq 100 is trading 0.1% below fair value on the GLOBEX.
In earnings this morning, Procter & Gamble is losing 1.1% after the consumer products giant missed Wall Street sales expectations for the first time in five quarters. Comcast is up 1.5% after delivering a top and bottom line beat, citing a record jump in customer relationships within its cable division. Travelers is sliding 2.4% despite the insurer exceeding consensus forecasts for both earnings and revenue. Apparel-maker VF Corp. is falling more than 6% following disappointing quarterly sales and a reduction in its full-year outlook. American Airlines is rising 0.5% after slightly topping analyst profit estimates.
Treasuries are strengthening, with the yield on the 10-year note down three basis points to 1.73%. On the data front, initial jobless claims came in at 211,000 in the most recent week. Separately, the Leading Index of Economic Indicators is projected to have declined 0.2% in December.
Overseas, China’s Shanghai Composite slumped 2.8%, its worst drop since May on the final trading day before the Lunar New Year holiday. In central bank news, the ECB opted to leave its benchmark rate unchanged.