Despite the accelerating velocity for the current earnings season, markets remain focused on the rapidly spreading coronavirus which has surpassed 4,500 cases in China and led China to restrict travel to Hong Kong as the death toll tops 100. Some 60 million are under travel restrictions in China, and select countries, including Indonesia and the Philippines, have restricted Chinese tourists. Outside of China, there are more than 60 confirmed cases, including ones in the US, Australia, France, and Germany. The US Centers for Disease Control and Prevention raised its travel precautions for China to its highest level, and at last count it is monitoring 110 possible coronavirus cases across 26 states.ADVERTISING
The escalation weighed on equity markets yesterday, leading the Dow Jones Industrial Average to fall 1.6%, its biggest one-day drop since October. The S&P 500 fell 1.6% as well extending its 2-day decline to 2.5% and the Nasdaq Composite dropped 1.9%, its worst day since August. As of yesterday’s close the Dow, NYSE Composite and the Russell 2000 were all in negative territory for the year. Year to date, at up 2.5% as of last night’s close, the Nasdaq 100 is the strongest performer of the major domestic equity indices, the Nasdaq Composite was up 1.9% and the S&P 500 up 0.4%. The CBOE S&P 500 Volatility Index rose over 25% yesterday and is now up 32.3% year-to-date.
As reports indicate the coronavirus continues to spread…
- Nike (NKE), Raytheon (RTN), and Xilinx (XLNX)are constituents in Tematica Research’s Thematic Dividend All-Stars Index.
- F5 Networks (FFIV)is a constituent in the Foxberry Tematica Research Cybersecurity & Data Privacy Index.