The major US equity indices all closed in the red yesterday on the news that the Center for Disease Control identified the first case of coronavirus in the US – a traveler from China was diagnosed in Seattle. Shares of Wynn Resorts (WYNN) and Las Vegas Sands (LVS) lost 6.2% and 5.3% respectively on concerns that the increasingly global outbreak could negatively impact international travel. Following reports China has taken steps to contain the coronavirus, Asian equities finished the trading day higher. At the same time, however, Chinese officials announced that more than 400 cases of the new coronavirus have now been identified with the death toll hitting nine, and the virus is “adapting and mutating.” We suspect we have not heard the last of this and we expect investors will closely monitor coronavirus developments to be had and assess implications for airline, gaming, hotel, and other travel-related companies. The World Health Organization is expected to issue a formal statement on the matter later today.
The US Senate will hear opening arguments in President Donald Trump’s impeachment trial today, followed by several days of presentations. So far the market has been completely disinterested as President Trump makes the rounds at the World Economic Forum in Davos. In interviews this morning, President Trump shared trade talks with the EU have begun and he would be “very surprised” if he had to implement auto tariffs; he expects to announce a “middle-class tax cut” over the next 90 days but acknowledges Republicans will need to win back the House in 2020 to pass that initiative, and his administration is developing a healthcare plan.
- IBM (IBM), Visa (V), is a constituent in Tematica Research’s Thematic Dividend All-Stars Index.
- Beyond Meat (BYND) and Tesla (TSLA) are constituents in Tematica Research’s Cleaner Living Index.
- IBM (IBM) is a constituent in the Foxberry Tematica Research Cybersecurity & Data Privacy Index.