As your authors commented to each other when discussing yesterday’s market rebound following the coronavirus inspired sell-off on Monday – “that didn’t last long!” The Nasdaq 100 lead the rebound, gaining 1.6% on the day with the Nasdaq Composite a close second, up 1.4%. The S&P 500 and Dow Jones Industrial Average rose 1.0% and 0.7% respectively and the CBOE S&P 500 Volatility Index (VIX) fell 10.7%. Helping fuel the rebound were a number of high-profile December quarter earnings reports that delivered better than expected results, but in some cases offered a cautiously optimistic outlook as managements continue to assess the impact to be had from the virus – see Stocks to Watch below.
The number of confirmed coronavirus cases in China approached 6,000 with total deaths reaching more than 130, prompting the Hong Kong Hang Seng fell 2.8% to a seven-week low on the first day of trading after the Lunar New Year holiday. China’s financial markets will remain closed until next Monday after authorities extended the Lunar New Year break by three days as they grapple with the worsening virus that has now recorded more cases than SARS. The People’s Bank of China reiterated plans to use its tools to ensure liquidity once the interbank market reopens on Feb. 3. And as the number of reported coronavirus cases continues to grow, we can add the United Arab Emirates to that list as the first cases of the virus were reported earlier today.
The Trump administration is reportedly considering a temporary ban on all flights from China to the U.S., and…
- AT&T (T), General Dynamics (GD), McDonald’s (MCD), Microsoft (MSFT), Qualcomm (QCOM), and Xilinx (XLNX) are constituents in Tematica Research’s Thematic Dividend All-Stars Index.
- Beyond Meat (BYND) and Tesla (TSLA) are constituents in Tematica Research’s Cleaner Living Index.