Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Stocks - Wall Street Drifts Lower at Open; Virus Delays China Restart

Published Feb 10, 2020 10:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
DJI
+0.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOGL
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-1.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XOM
-0.90%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPG
-0.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith

Investing.com -- Wall Street edged higher at the opening on Monday, reversing earlier losses on continued fears about the impact of the coronavirus on the world economy, amidst reports that China’s factories were slow to return to work after a lengthy and enforce New Year holiday.

By 10:20 AM ET (1520 GMT), the Dow Jones Industrial Average was up 80 points or 0.3%, while the S&P 500 and the Nasdaq Composite were both up 0.4%, all seemingly content to await congressional testimony from Federal Reserve Chairman Jerome Powell on Tuesday and Wednesday before committing to any bigger moves.

Uncertainty was the watchword on Monday, owing to the difficulty of forming a coherent picture of how quickly China’s factories and shops can return to anything like their pre-holiday level of activity.

Apple (NASDAQ:AAPL) stock, for example, fell 0.6% amid conflicting reports about the reopening of factories belonging to Hon Hai Precision – also known as Foxconn – where the bulk of iPhones are made.

Reuters reported that Foxconn had reopened factories with staffing levels at around 10% of normal, while Bloomberg reported that the company had sent a message to staff on its internal app saying that it couldn’t give a date for the resumption of production.

Market research firm Trendforce said on Monday it had cut its forecast for iPhone production by about 10% to 41 million handsets for the three months through March. The only bright spot for Apple (NASDAQ:AAPL) is that the first quarter of the calendar year is in any case normally the slowest.

Tesla (NASDAQ:TSLA) stock leaped 4.9% but was off intraday highs after a highly speculative analysis in Forbes touting a possible takeover by Alphabet (NASDAQ:GOOGL). Additionally, initial enthusiasm about the partial reopening of its Shanghai plant gave way to the realization that production – and cash flow – may take weeks if not months to ramp up fully. Reports suggested that the ramp up at Tesla and elsewhere will be delayed by the quarantining of laborers who return from holidays from other parts of the country.

Chinese state media on Monday ran an interview with a leading local virologist suggesting that the incubation period for the coronavirus could be as much as 24 days, rather than the 14 reported hitherto.

Elswhere among individual stocks on Monday, struggling mall operator Taubman Centers stock rose 53% after rival Simon Property (NYSE:SPG) offered to buy one-third of the Taubman family stake in a deal that values the group at $3.6 billion including debt. The deal still needs approval from Taubman’s free shareholders.

Exxon Mobil (NYSE:XOM) stock dipped back towards a new 10-year low again as U.S. crude futures tumbled below $50 a barrel again on growing fears that OPEC and its ally Russia aren’t acting to stop a new glut forming on world markets as Chinese demand collapses.

Stocks also came under pressure from the strengthening dollar, which hit its highest level since October against developed-market peers, including a four-month high against the euro.

A stronger dollar not only reduces the value of U.S. companies’ export earnings, it also tends to tighten financing conditions for the world economy, as dollar-denominated debt becomes more difficult for foreign companies and governments to service.

Stocks - Wall Street Drifts Lower at Open; Virus Delays China Restart
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (2)
Xin Zhang
Xin Zhang Feb 10, 2020 6:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol, DOW closed nearly record high
Serge Boch
Serge Boch Feb 10, 2020 12:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
whast the point of this article? you are inaccurate and misleading.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
Continue with Google
or
Sign up with Email