Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US STOCKS-Travel, tech stocks lead Wall St lower as China virus fears mount

Published 27/01/2020, 16:52
© Reuters.  US STOCKS-Travel, tech stocks lead Wall St lower as China virus fears mount
US500
-
DJI
-
MSFT
-
GOOGL
-
WYNN
-
AAPL
-
AMZN
-
UAL
-
IXIC
-
MLCO
-
VIX
-
AAL
-
GOOG
-
SPNY
-
SPLRCU
-
SPLRCS
-

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

* Travel stocks hit by extended Lunar New Year holidays

* Banks follow U.S. Treasury yields lower

* Crude slips below $60, energy shares down

* Indexes down: Dow 1.39%, S&P 1.42%, Nasdaq 1.80%

(Updates to open)

By Sruthi Shankar

Jan 27 (Reuters) - U.S. stocks fell more than 1% on Monday

as investors worried about the economic fallout of the

fast-spreading coronavirus outbreak in China that has prompted

the country to extend the Lunar New Year holidays and businesses

to close some operations.

The benchmark S&P 500 was jolted off record highs last week

as China locked down several cities and curbed travel, reminding

investors of the deadly SARS virus that killed nearly 800 people

in 2002-03 and cost the global economy billions.

Travel-related stocks, including airlines, casinos and

hotels, were the worst-hit on Wall Street, while shares of tech

heavyweights that enjoyed a strong rally recently dragged

markets lower.

Apple Inc AAPL.O , Microsoft Corp MSFT.O , Alphabet Inc

GOOGL.O and Amazon.com Inc AMZN.O dropped between 1.5% and

2.6%.

Wynn Resorts Ltd WYNN.O , Melco Resorts & Entertainment Ltd

MLCO.O and Las Vegas Sands Corp LVS.N , which have large

operations in China, slid between 4% and 7%. United Airlines

Holdings Inc UAL.O and American Airlines Group Inc AAL.O

fell 4.5% and 6.6%, respectively.

The iShares China Large-Cap ETF shed FXI.P 4.1%.

Yum China Holdings Inc YUMC.N dropped 5.0% after the

company said it had temporarily closed some of its KFC and Pizza

Hut stores in Wuhan. The death toll from the outbreak in China rose to 81 on

Monday and a small number of cases linked to people who

travelled from Wuhan have been confirmed in more than 10

countries, including Thailand, France, Japan and the United

States. Wall Street's fear gauge, the CBOE Volatility index .VIX

jumped to its highest since Oct. 10.

"The coronavirus will not validate or invalidate the present

market multiple, it will just elevate volatility due to the

embedded uncertainty of things," David Bahnsen, chief investment

officer of The Bahnsen Group, wrote in a client note.

"The Dow is up a stunning 3,000 points in just over three

months – it hardly needs an excuse to see volatility elevated."

The rush to safe haven assets sank U.S. Treasury yields to

three-month lows, putting pressure on shares of Bank of America

Corp BAC.N , Citigroup Inc C.N and JPMorgan Chase & Co

JPM.N . US/

At 10:11 a.m. ET, the Dow Jones Industrial Average .DJI

dropped 1.39% to 28,587.46.

The S&P 500 .SPX fell 1.42% to 3,248.71 and the Nasdaq

Composite .IXIC was down 1.80% at 9,147.23.

The S&P energy index .SPNY dropped 2.0% as crude price

fell below $60 per barrel on fears of slowing oil demand

following the outbreak. O/R

Defensive sectors such as consumer staples .SPLRCS , real

estate .SPLRCR and utilities .SPLRCU posted minimal losses.

Fourth-quarter earnings season will kick into high gear this

week with 141 of the S&P 500 companies expected to report this

week including Apple, Microsoft Corp MSFT.O and Boeing Co

BA.N . No.1 U.S. homebuilder D.R. Horton Inc DHI.N rose 2.7%

after raising the upper end of its forecast for full-year home

sales. Declining issues outnumbered advancers for a 6.17-to-1 ratio

on the NYSE and a 5.13-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and 11 new lows,

while the Nasdaq recorded 20 new highs and 68 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.