Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Stock Rout Deepens With Virus Angst Roiling Globe: Markets Wrap

Stock MarketsJan 31, 2020 11:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

(Bloomberg) -- The sell-off in stocks accelerated as bonds surged on concern the spread of the coronavirus will slam global economic growth.

The Dow Jones Industrial Average erased its 2020 advance as investors remained on edge over the impact of the disease that’s now infected about 10,000 people around the world. Caterpillar Inc (NYSE:CAT). sank as its profit outlook trailed analysts’ estimates, adding to worries about global business spending. Inc (NASDAQ:AMZN). soared after a blowout quarter, delivering an unprecedented boost to its market value that now exceeds $1 trillion. Treasury 10-year yields tumbled toward the lowest since October. Oil slumped.

The final week of January has been tumultuous across global markets, as a barrage of corporate earnings, central-bank decisions and economic data landed in the growing shadow of the deadly epidemic. The outbreak will cut U.S. economic growth by 0.4 percentage point in the first quarter as the number of tourists from China plunges and exports to the Asian nation slow, according to Goldman Sachs Group Inc (NYSE:GS). Still, a report showed that American consumer sentiment increased in January to an eight-month high, indicating sustained optimism in the face of the coronavirus.

Global stocks headed toward their worst week and month since August, with the S&P 500 trimming its January advance to less than 0.5%. Alongside tech, defensive companies such as utilities and real estate have driven gains in the U.S. equity benchmark this month. Energy and material shares have underperformed.

“The virus outbreak represents this unknown that, frankly, markets aren’t very good at handicapping,” said David Lafferty, chief market strategist at Natixis Investment Managers in Boston. “It’s almost like an open-ended risk.”

Some other corporate highlights:

  • Exxon Mobil Corp (NYSE:XOM). and Chevron Corp. (NYSE:CVX) posted the weakest results in years amid disappointing numbers in almost all of their business lines.
  • Honeywell International Inc (NYSE:HON). sales forecast disappointed analysts as an industrial slowdown crimped revenue growth.
  • Boeing (NYSE:BA) Co. was cut by Moody’s Investors Service to the lowest tier of investment grade.
  • Visa Inc (NYSE:V). said the incentives it hands out to banks and retailers will climb faster than revenue and are on track to be at the high end of its targeted range for 2020.
  • Colgate-Palmolive (NYSE:CL) Corp. posted strong sales growth last quarter even as it raised prices to consumers.
Elsewhere, oil tumbled as Asia’s coronavirus spread stoked concerns that demand for transportation fuels will shrink. The pound is ending a tumultuous month on a high note amid Britain’s exit from the European Union.

These are some of the main moves in markets:


  • The S&P 500 sank 1.2% as of 11 a.m. New York time.
  • The Stoxx Europe 600 Index slid 1.1%.
  • The MSCI Emerging Market Index dipped 1.2%.

  • The Bloomberg Dollar Spot Index fell 0.2%.
  • The euro gained 0.4% to $1.1079.
  • The Japanese yen appreciated 0.5% to 108.37 per dollar.

  • The yield on 10-year Treasuries declined five basis points to 1.53%.
  • Germany’s 10-year yield decreased three basis points to -0.44%.
  • Britain’s 10-year yield fell three basis points to 0.517%.

  • The Bloomberg Commodity Index decreased 0.2%.
  • West Texas Intermediate crude dipped 1.2% to $51.53 a barrel.
  • Gold climbed 0.3% to $1,593.30 an ounce.

Stock Rout Deepens With Virus Angst Roiling Globe: Markets Wrap

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Utkarsh sinha
Utkarsh sinha Jan 31, 2020 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nelfinavir a drug for HIV has found to be effective in treatment of corona and a patientb56 year ood has been discharged post showing dramatic inprovemnt post being out on it. This is an unnecessary panic created in marketbaks world and i think the issue is not as severe as it is being portrayed.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email