outbrain
Close  

U.S. stocks close mostly higher, led by tech, industrials

/ 06:29 AM January 24, 2020

Major U.S. stock indexes closed mostly higher Thursday, as gains in technology and industrial companies offset declines elsewhere in the market.

FILE – In this Jan. 15, 2020, file photo specialist Peter Mazza works at his post on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Thursday, Jan. 23. (AP Photo/Richard Drew, File)

The S&P 500 notched a small gain for the second straight day, while a modest pickup nudged the Nasdaq composite to an all-time high. The Dow Jones Industrial Average closed lower for the third day in a row, weighed down by a steep drop in shares of Travelers Cos. Bond prices rose, sending yields lower.

ADVERTISEMENT

Trading was choppy for much of the day following a sell-off in Asia, where concern about the potential impact of a deadly new virus outbreak dragged stock indexes in China sharply lower. Fears that the coronavirus could spread, dampening tourism and economic growth, has weighed on global markets this week, driving up demand for U.S. government bonds and safe-play stocks.

Traders also had their eye on a mixed batch of company earnings reports, including encouraging quarterly results from American Airlines and Citrix Systems, and disappointing report cards from Travelers and Raymond James Financial.

FEATURED STORIES

“Today was driven a bit by earnings, but also by the coronavirus fears,” said J.J. Kinahan, chief strategist with TD Ameritrade.

“Asian markets had a really tough night and that was our lead-in, that put a bit of extra pressure on the market coming in.”

The S&P 500 index inched up 3.79 points, or 0.1%, to 3,325.54. The index had been down as much as 0.6% earlier in the day.

The Dow fell 26.18 points, or 0.1%, to 29,160.09. The Nasdaq gained 18.71 points, or 0.2%, to 9,402.48. The index, which is heavily weighted with technology stocks, previously hit a record high last Friday.

The Russell 2000 index of smaller company stocks rose 0.55 points, or less than 0.1%, to 1,685.01.

Excluding the Nasdaq, the major U.S. stock indexes are on track to end the week with a loss.

Bond prices rose. The yield on the 10-year Treasury fell to 1.73% from 1.77% late Wednesday.

ADVERTISEMENT

Stocks got off to a shaky start following a sell-off in global markets as authorities worldwide stepped up measures to monitor and contain the virus. The central Chinese city of Wuhan, where the virus is concentrated, closed down its train station and airport Thursday to prevent people from entering or leaving the city.

The coronavirus has been confirmed in five countries, including China, the U.S., Thailand, Japan and South Korea. More than 500 people have fallen sick and 17 have died from the illness, which can cause pneumonia and other severe respiratory symptoms.

A World Health Organization committee decided on Thursday against declaring the outbreak a global emergency for now. Such a declaration can bring more money and other resources to fight a threat but can also trigger economically damaging restrictions on trade and travel in the affected countries, making the decision a politically fraught one.

The market regained some of its footing as the day went on and investors focused on the latest company earnings reports.

Technology stocks notched the biggest gains. Citrix Systems led all S&P 500 stocks, vaulting 7.8%, after the software company reported fourth-quarter earnings and revenue that topped Wall Street’s forecasts.

Industrial stocks also rose, helped by solid earnings from American Airlines Group. Strong travel demand resulted in record occupancy levels on its planes, though the airline noted it had to cancel about 10,000 flights during the fourth quarter because of the grounding of the Boeing 737 Max jets. Its stock climbed 5.4% and helped lift other airlines. Southwest Airlines gained 3.6% and Alaska Air Group rose 2.4%.

Real estate and utilities companies also notched gains as traders shifted money into the safe-play sectors.

Health care stocks were the biggest losers. Edwards LifeSciences, which makes heart valves, dropped 4.8%.

Financial stocks, including insurers, also fell. Travelers Cos. slid 5.1%, while financial services firm Raymond James dropped 6.2% after falling short of profit forecasts.

Crude oil prices slumped and weighed on energy stocks. Pioneer Natural Resources dropped 2.9%.

V.F. Corp. slid 9.7% after the maker of Vans and Timberland shoes cut its profit forecast for the year following weak fiscal third-quarter sales. The stock was the biggest decliner in the S&P 500.

Benchmark crude oil fell $1.15 to settle at $55.59 a barrel. Brent crude oil, the international standard, dropped $1.17 to close at $62.04 a barrel. Wholesale gasoline fell 2 cents to $1.56 per gallon. Heating oil declined 1 cent to $1.79 per gallon. Natural gas rose 2 cents to $1.93 per 1,000 cubic feet.

Gold rose $9.30 to $1,564.60 per ounce, silver was unchanged at $17.77 per ounce and copper fell 4 cents to $2.73 per pound.
The dollar fell to 109.52 Japanese yen from 109.89 yen on Wednesday. The euro weakened to $1.1056 from $1.1092.

European markets fell. Asian markets also declined. The virus outbreak coincides with the annual travel of hundreds of millions of Chinese for the Lunar New Year festival, which begins Friday. In Hong Kong, the Hang Seng dropped 1.5%, while the Shanghai Composite index declined 2.8%.

 GSG
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: China virus, Stock Market, US stocks
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.