U.S. stocks slumped Friday after fears over the spread of the deadly coronavirus in China outweighed earlier optimism over strong corporate earnings results.
4:07 p.m. ET: Stocks swoon as more coronavirus cases confirmed
Stocks ended Friday’s session sharply lower as the number of confirmed cases of the coronavirus from China rose.
As of Friday afternoon, France declared its first two confirmed cases of the coronavirus, joining a list of countries outside China including the U.S., Japan, South Korea and Thailand with confirmed incidences of the disease. China’s Global Times reported 26 death due to the coronavirus, along with 903 confirmed cases.
The S&P 500 and Dow each ended the week lower by about 1%. The Nasdaq fell by 0.8% on the week.
U.S. Treasuries bid higher in a shift to safe haven assets, with the yield on the 10-year Treasury note lower by 5 basis points to below 1.7% as of Friday afternoon.
Here’s where the markets settled Friday at the end of regular equity trading:
S&P 500 (^GSPC): -0.9% or -30.09 points to 3,295.45
Dow (^DJI): -0.58% or -170.5 points to 28,989.59
Nasdaq (^IXIC): -0.93% or -87.57 points to 9,314.91
Crude oil (CL=F): -2.16% or -$1.2 to $54.39 a barrel
Gold (GC=F): +0.33% or +$5.20 to $1,570.60 per ounce
2:34 p.m. ET: Declines in three major indices steepen
Losses in the three major indices accelerated with about 90 minutes left of the trading day, as fears over the deadly coronavirus spooked investors in risk assets.
The Dow was dragged lower by declines in shares of Dow Inc, off more than 4% in afternoon trading. The financial and health-care sectors underperformed in the S&P 500.
Here were the main moves in markets as of 2:35 p.m. ET:
S&P 500 (^GSPC): -1.15% or -38.2 points to 3,287.34
Dow (^DJI): -0.9% or -261.49 points to 28,898.60
Nasdaq (^IXIC): -1.18% or -111.37 points to 9,291.41
Crude oil (CL=F): -2.79% or -1.55 to 54.04 a barrel
Gold (GC=F): +0.61% or -9.5 to 1,574.90 per ounce
11:12 a.m. ET: Apple’s stock hits an all-time high
Shares of Apple (AAPL) hit a record intraday high of $323.32 Friday morning, with the stock getting a boost from increasingly bullish analysts on the Street.
Wedbush analyst Dan Ives late Thursday raised his price target on shares of Apple to $500 and reiterated his rating of Outperform. He cited “overwhelming positive data points” the firm was picking up from Apple’s suppliers, adding that he felt other analysts were “still underestimating the magnitude of this 5G upgrade cycle” for the iPhone-maker.
Ives said he expects Apple will “handily beat Street expectations in light of a strong holiday season with pent up demand catalyzing iPhone 11 purchases across the board” in corporate earnings results scheduled for Tuesday.
Earlier this month, firms including Mortan Stanley, Credit Suisse and Argus Research had also raised their price targets on shares of Apple.
10:32 a.m. ET: Stocks dip into the red, reversing earlier gains
The three major indices reversed course Friday after the Center for Disease Control and Prevention on Friday confirmed its second U.S. case of the coronavirus from China.
The Dow had previously been up by as many as 128 points at the highs of the morning session.
Here were the main moves in markets, as of 10:32 a.m. ET:
S&P 500 (^GSPC): -0.21% or -7.01 points to 3,318.53
Dow (^DJI): -0.02% or -6.43 points to 29,153.66
Nasdaq (^IXIC): -0.01% or -1.59 points to 9,400.88
Crude oil (CL=F): -1.87% or -1.04 to 54.55 a barrel
Gold (GC=F): +0.32% or -5.00 to 1,570.40 per ounce
10:24 a.m. ET: 10-year Treasury yield falls to the lowest level in more than seven weeks
The yield on the 10-year Treasury note fell more than three basis points to 1.7012% at the lows of Friday’s session so far. This marked the lowest level since December 4, according to Bloomberg data.
Buying of U.S. government bonds jumped on Friday after IHS Markit’s latest print on U.S. manufacturing business activity showed ongoing weakness in the sector. Concerns have also flared over the increasing number of cases of the coronavirus from China, pumping up demand for safe haven assets like Treasuries.
10:19 a.m. ET: CDC confirms second case of coronavirus in U.S.
The Center for Disease Control and Prevention on Friday said U.S. health officials had diagnosed a second patient with the coronavirus.
The patient was a Chicago-based woman in her 60s who returned from Wuhan with the infection, and is in stable condition. The CDC said it is also currently monitoring 63 other potential cases in the U.S. across 22 different states.
9:45 a.m. ET: U.S. private sector business activity jumps to 10-month high
Business activity in the U.S. private sector surged to the highest level since last March in January, according to IHS Markit’s preliminary monthly purchasing managers’ index (PMI).
The composite PMI comprising both the services and manufacturing sector activity rose to 53.1 in January from 52.7 in December. Beneath the headline, the services PMI rose to 53.2 from 52.8, beating consensus expectations for 53.0, according to Bloomberg consensus data.
Manufacturing activity was slightly below expectations, however. This sector PMI fell to 51.7 for the month from 52.4, missing estimates for 52.5.
“The recovery of growth momentum across the U.S. private sector continued to quicken at the start of 2020,” Siaân Jones, IHS Markit economist, said in a statement. “Nonetheless, the underlying data highlights a manufacturing sector that is not out of the woods yet, with goods producers seeing only modest gains in output and new orders. Service providers also registered a slower upturn in new business, which fed through to softer increases in output charges as part of efforts to attract new customers.”
9:43 a.m. ET: McDonald’s stores in some Chinese cities closed as coronavirus sweeps region
McDonald’s (MCD) locations in Ezhou, Huanggang, Qianjiang, Xiantao and Wuhan – the apparent epicenter of the coronavirus outbreak – have been temporarily shuttered due to fears of spreading the disease further, Reuters first reported Friday.
In an emailed statement to Yahoo Finance, a company spokesperson said: “Since January 24, we have suspended our business temporarily in Wuhan and its surrounding cities where local public transportation system Is suspended. Staff and customers’ safety is our first priority and we have comprehensive precautious measures being implemented to all restaurant operations and office staff.”
Shanghai Disney Resort (DIS) is also closing down at least through the Lunar New Year as fears mount over the deadly virus, the company said in an announcement Friday.
9:32 a.m. ET: Stocks open higher after earnings come in ahead of expectations
Stocks held onto gains from the pre-market session and opened higher. The Dow initially jumped more than 100 points, led by advances in Intel’s stock.
Here were the main moves in the markets, as of 9:36 a.m. ET:
S&P 500 (^GSPC): +0.12% or +3.83 points to 3,329.37
Dow (^DJI): +0.33% or +95.75 points to 29,255.85
Nasdaq (^IXIC): +0.41% or +39.63 points to 9,441.40
Crude oil (CL=F): -1.42% or -0.79 to 54.80 a barrel
Gold (GC=F): -0.35% or -5.50 to 1,559.80 per ounce
9:05 a.m. ET: Intel, American Express shares rise after posting strong quarterly results
Chipmaker Intel (INTC) delivered quarterly results and guidance that topped consensus expectations, driven by solid performance in data center group revenues and PC processing unit sales as customer demand picked up. Shares were up more than 5% in pre-market trading.
Fourth-quarter adjusted earnings per share came in at $1.52 on revenue of $20.21 billion, well above the $1.52 a share on sales of $19.22 billion expected. Intel’s guidance for first quarter adjusted EPS of $1.30 on revenue of $19 billion also topped estimates.
Data center group revenue grew 19% year over year to $7.21 billion, with Intel benefiting from a pick-up in demand from big tech companies as they build out their cloud computing capacity. PC processing segment sales increased slightly to $10 billion as the company turned the corner on last year’s struggles to produce enough computer chips to meet customer demand.
Meanwhile, American Express (AXP) also delivered quarterly sales, earnings and guidance that beat expectations. Fourth quarter adjusted EPS was $2.03, or two cents better than anticipated, and revenue of $11.4 billion was just above expectations for $11.36 billion. Results were driven by a combination of higher than expected card fees from customers and lower-than-expected costs from customer rewards.
American Express shares rose more than 2.5% in early trading.
7:33 a.m. ET: Stock futures rise as China expands measures to contain coronavirus ahead of a major holiday
U.S. stock futures rose Friday morning as China made further efforts to contain a spreading coronavirus the day before Lunar New Year, an event typically accompanied by massive volumes of travelers. Positive quarterly results from chipmaker Intel (INTC) and American Express (AXP) and solid economic data out of Europe helped keep domestic equities afloat amid the uncertainty.
The Chinese government demanded that travel agencies halt sales of domestic and international package tours, adding to earlier travel restrictions around cities near the epicenter of the outbreak. The total death toll from the virus was 25, with more than 800 confirmed cases as of Thursday, according to the National Health Commission. The World Health Organization has so far not designated the virus as a global health emergency.
Here were the main moves during the pre-market session, as of 7:33 a.m. ET:
S&P futures (ES=F): 3,333.00, up 7 points or 0.21%
Dow futures (YM=F): 29,200.00, up 73 points or 0.25%
Nasdaq futures (NQ=F): 9,276.75, up 28.5 points or 0.31%
Crude oil (CL=F): $55.47 per barrel, down $0.12 or 0.22%
Gold (GC=F): $1,5538.20 per ounce, down $7.20 or 0.46%