Day Traders Diary

2/12/20

The major averages rose to new all-time highs as investors shook off concerns over how the coronavirus would impact corporate profits and the global economy. The Dow Jones Industrial Average closed up 275 points 0.9%, at 29,551. The S&P 500 advanced 0.6% to 3,379 while the Nasdaq Composite gained 0.8% to end the day at 9,725.

UnitedHealth climbed more than 4% to lead the Dow higher. Nike, Apple and Caterpillar all rose more than 2%. Tech and energy were the best-performing sectors in the S&P 500, climbing more than 1% each.

As of Tuesday night, China's National Health Commission had reported 97 additional deaths with total confirmed cases passing 44,000. However, the pace of new reported cases appears to be slowing down as they hit their lowest levels since late January. Chinese lawmakers have also taken steps to curb a possible economic downturn from the coronavirus.

Wynn Resorts and Las Vegas Sands, two stocks tied to coronavirus worries because of their exposure to the Chinese market, each rose more than 3%. Delta and American Airlines climbed 1.4% and 2.1%, respectively.

Corporate earnings remained in focus after Lyft reported more than $1 billion in quarterly revenue, but forecast slower growth in 2020. Lyft shares slid 10.2%.

CVS Health, Molson Coors, Teva Pharmaceutical and Shopify all reported quarterly results that beat analyst expectations. About 70% of S&P 500 companies have posted calendar fourth-quarter results. Of those companies, 71.1% have beaten analyst expectations, FactSet data shows.

U.S. Treasuries remained out of favor amid the bullish bias in stocks. The 2-yr yield increased two basis points to 1.44%, and the 10-yr yield increased four basis points to 1.63%. The U.S. Dollar Index remained strong, closing 0.3% higher at 99.00.