Day Traders Diary

1/24/20

The major averages pulled back after the second U.S. case of the deadly coronavirus was confirmed, stoking concerns over the sickness' impact on the global economy. The Dow Jones Industrial Average finished down 170 points, or 0.6%, at 28,989 after jumping more than 100 points earlier in the day and also selling off 300 points earlier in the day. Friday also marked the Dow's first close below 29,000 since Jan. 14. The S&P 500 fell 0.9% to 3,295, for its worst loss of the year. The Nasdaq Composite ended down 0.9% at 9,314.

The Dow, S&P 500 and Nasdaq all posted their first weekly loss for 2020. The Dow and S&P 500 both fell over 1% week to date while the Nasdaq slid 0.8%.

On Friday, the Centers for Disease Control and Prevention said a Chicago resident who traveled to Wuhan — the Chinese city where the coronavirus originated — in December was diagnosed with the sickness. U.S. Senator John Barrasso later said the CDC told lawmakers they are about to confirm a third case of the Wuhan virus in the U.S.

Shares of United Airlines and American both fell more than 5%. Las Vegas Sands and Wynn Resorts also dropped more than 3% each.

On the earnings front, Intel rose 8% and American Express rose 2.9% following solid results. Boeing rose 1.7% after the FAA said it could approve the 737 MAX before mid-2020. Chipmaker, Broadcom rose 1.4% secured a multi-year agreement with Apple.

The 2-yr yield declined four basis points to 1.48%, and the 10-yr yield declined six basis points to 1.68%. The U.S. Dollar Index increased 0.2% to 97.86. WTI crude dropped 2.5% (-$1.40) to $54.21/bbl, as expectations for oil demand continued to weaken amid the spread of the coronavirus.