Bulletin
Investor Alert

Market Snapshot Archives | Email alerts

Feb. 10, 2020, 4:44 p.m. EST · CORRECTED

S&P 500, Nasdaq close at records as investors look past coronavirus to solid corporate earnings

Earnings season moves into final stretch

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Industrial Average (DJIA)
  • X
    S&P 500 Index (SPX)
  • X
    NASDAQ Composite Index (COMP)

or Cancel Already have a watchlist? Log In

By Joy Wiltermuth and Sunny Oh

An earlier version of this article stated incorrect record closing levels. The article has been corrected.


AFP/Getty Images
Millions of people in China were slated to return to work Monday after an extended holiday designed to slow the spread of the coronavirus.

The Nasdaq Composite and S&P 500 clinched closing records on Monday as investors took heart in mostly solid U.S. fourth-quarter corporate earnings and looked beyond concerns about the coronavirus outbreak’s potential disruption to global supply chains.

How did the major indexes fare?

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.10% rose 174.31 points to end at 29,276.82, a gain of 0.6%. The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.34% advanced 24.38 points, or 0.7%, ending at 3,352.09. The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.37% added 107.88 points, or 1.1%, to finish at 9,628.39.

What drove the market?

“Earnings seem to be the story,” Sahak Manuelian, managing director of equity trading at Wedbush Securities, told MarketWatch. “They have been fairly strong, with numbers coming in slightly better and guidance is looking OK too. This market is really hanging in there.”

The World Health Organization warned Monday that the spread of the coronavirus to people who have not visited China could be “the spark that becomes a bigger fire,” while urging nations to fight the epidemic together.

Expectations for the Federal Reserve to prop up the economy with easy financial conditions if the coronavirus spills over into the U.S., also helped to support stocks. Investors say a continuation of ultraloose monetary policy could explain the disconnect between depressed long-dated bond yields, a sign that investors are piling into haven assets, and records in major equity benchmarks.

“Coronavirus fears remain at the top of investors’ minds,” wrote Arnim Holzer, macro strategist for EAB Investment Group, underscoring that bonds seem to be confirming those concerns more than equities. “The Fed’s liquidity support can help to support valuations,” Holzer said of stock prices. But added that “ultimately muted Asian GDP growth and earnings expectations” will be important to watch.

Chinese factories started to reopen on Monday, but local government efforts to limit the spread of the virus has led some businesses to stay closed. A prolonged closure could exacerbate the nation’s slowdown and upend global supply chains that rely on Chinese manufacturers to keep retailers stocked.

See : Investors brace for coronavirus shock as China factories poised to reopen Monday

Check out : Goldman Sachs says impact of coronavirus will be ‘limited,’ and these are the stocks to buy if it’s right

China’s health ministry on Monday said another 3,062 cases had been reported over the previous 24 hours, raising the mainland’s total to 40,171. The death toll grew by 97 to 910, surpassing the 774 attributed to the severe acute respiratory syndrome, or SARS, a 2003 viral outbreak that originated in China.

“As long as investors don’t perceive a threat to corporate earnings and the U.S. economy from the virus, then the market can continue to trade higher on better economic data and better-than-expected earnings,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, told MarketWatch in an email.

Meanwhile, the director-general of the World Health Organization warned Sunday that countries outside of China should be prepared for the spread of the coronavirus to accelerate.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
28,335.57
-28.09 -0.10%
Volume: 350.10M
Oct. 23, 2020 5:15p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,465.39
+11.90 +0.34%
Volume: 2.16B
Oct. 23, 2020 5:15p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,548.28
+42.28 +0.37%
Volume: 2.88M
Oct. 23, 2020 5:16p
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.