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Stocks - Dow Nosedives as Virus Jitters Trigger Sea of Red

Published 01/31/2020, 12:51 PM
Updated 01/31/2020, 12:57 PM

By Yasin Ebrahim

Investing.com – A sea of red washed over stocks Friday as the spread of the coronavirus continued to drum up fears about slowing global growth, while a slump in oil major Exxon Mobil (NYSE:XOM) exacerbated selling in energy.

The S&P 500 fell 1.44% and the Nasdaq Composite slumped 1.15%. The Dow Jones Industrial Average slipped 1.73%, or 499 points.

Nearly 10,000 cases of the coronavirus have been confirmed worldwide and the death toll in China rose to 213, threatening to slow growth even more in China, which many fear will spill over into the global economy.

Mizuho Securities estimates that a prolonged spread of the virus threatens to knock full-year growth in China by 0.3% to 5.6%.

Several countries have tightened travel restrictions including the U.K. and the U.S, exacerbating investor concerns about the impact slowing air travel will have airline stocks.

American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) fell more than 3%, with Delta Air Lines (NYSE:DAL) down more than 2%.

Energy, already under pressure from falling oil prices, led the decline in the broader market pressured by a slump in Exxon (NYSE:XOM).

Exxon (NYSE:XOM) fell about 4% after the oil major missed quarterly estimates, which it blamed on short-term supply issues in its refining business.

Industrials also played a role in the broader sell off, paced by declines in Caterpillar (NYSE:CAT) and Honeywell (NYSE:HON) on weak quarterly results and guidance.

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Caterpillar fell nearly 3% after reporting mixed quarterly results and offering up a weaker-than-expected outlook on full-year performance, warning that global economic uncertainty would continue to weigh performance.

Honeywell dropped more than 3% as its quarterly revenue missed Wall Street estimates, with the industrial pinning the blame on impact from the grounding of Boeing's 737 Max.

Consumer discretionary proved an exception to the rout on Wall Street thanks to a pop in shares of Amazon (NASDAQ:AMZN) after the e-commerce giant smashed earnings expectations. Shares rose nearly 9%, but were off earlier highs.

Latest comments

The “corona virus” is a callsign for the powers that be to take profits from their investment gains over the last year. Hedge your positions, buy some VXX calls, and stay safe!
Hey, At the fed meeting Powel practically gave the okay to short the ***out of everything.. because of the virus.. ***** he couldn't blame his problems on the tariffs.. So he speaks of the Coronavirus.. Now it's selling the rumor.... Buy the news.. (The dip).
get ready for Black Monday....
The only virus causing the markets to crash today is the one still in the White House when the GOP senate doesn’t have the courage to kick the bum out.
No matter if you like him or not, why post something not at all based on fact?  The president is not the reason for the market declined today.  Please try not to mislead other investors who may believe your false post.
2019 GDP announced today less than half the +5% we were promised. That’s what drove the markets down today. That’s the WH virus I was talking about. Not a false post at all. And not at all misleading. Quite the contrary! If anything, your reply to me demonstrates you lack a grasp of economic analysis. Sad....
The forecast was for 2.1 %  and actual number 2.1% is what I see.  No surprise to the market there, and if you think people are selling off due to expecting a higher number you truly don't understand how our markets work.  Best of luck to you and your investment strategy.
MY INDIAN are safe allready alerts thanks global but don't underestimate preconceptions properly do
The media has shown Chinese people with masks over their faces as if it's a new thingThey've been doing that for years because of the air pollution. China is a toilet, a brutal communist country. Their government doesn't give a rats pattuty about them. Pay attention to what goes on over here in this country, you'll be much more grateful for the blessings we have .
Serial ****Virus slaying the Markets ?! Did this O.J drop a glove ?!
Please people, this virus thing has gone too far. It's only a week or so old and already I'm sick of it. Over 8000 people died in this country since December from the flu. 213 die in China and the world stops. There is no excuse for the panic.
 because new deadly virus is always a risk for next end of the World 80% off people dying from Earth, that's why. Virus can't be cured or stopped we don't have medicine against viruses, only way to stop them is to train our bodies to eat them inside a white cell then the virus still lifes but it's going out of you when you visit a toilet. Virus can't be killed it doesn't have a life. It never lived there's no DNA inside virus so it's code can't be destroyed. It doesn't have code to follow it's going randomly. Those are really bad if they mutate to spread well.
That requires math skills, and math is hard.
Your comment, though respected, is conjecture.
the real reason is they had to refill the ink in the printing press at the mint. money printing is temporarily down
Ha, ha good one!
I don't believe this is the only factor in the market downturn. It will be the new excuse though.
The markets true worry is a Sanders win in Iowa. Watch the whole healthcare sector tank if that happens not to mention most every other sector.
Nelfinavir a drug for hiv aptients has been found to be effective for treatment of a 56 year old lady in China who was docharges from hospital. Media is creqting unnecesary panic here . Is it maybe call weiters are behind it. US exonomynis doing great and yet market drops like this for a virus that has taken less lives thancommon cold every year.
It's about time reality set in with this Market. I knew it went full ludicrous yesterday when it was announced that it was what danger to all by the WHO and they proceeded to Pump It Up the rest of the day. Classic Wall Street rug pull
every year nearly 400K ppl die from Malaria. isn't the media over dramatic with this 2019-ncov?
 They're another pandemic disease. Lying disease.
What are you talking about. A mosquito bites someone with malaria and transmits that blood to someone who doesn't have the virus and they now have it. The vehicle might not be the same but the outcome is.
  And the same media for when the markets go up./s
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