Chinese officials again reported fewer than 1,000 new cases Sunday, though the overall total in mainland China is nearly 77,000 infected, with more than 2,400 deaths.
“What we’re hearing from China is positive,” Kristina Hooper, chief global market strategist at Invesco told MarketWatch. “Clearly, this is a significant issue, but we know there is a light at the end of the tunnel. We just don’t know how long the tunnel is.”
In the U.S., there are now 53 confirmed cases of COVID-19, as more passengers who returned from the Diamond Princess cruise ship tested positive for the virus, according to an update from the Centers for Disease Control and Prevention.
Coronavirus update : 79,339 cases, 2,169 deaths, clusters emerge in Iran and Italy
What companies were moving?
Shares of Tesla Inc. /zigman2/quotes/203558040/composite TSLA +3.62% slumped 7.5% over coronavirus worries. The company has production facilities in China, and derives more than 10% of its sales from that country.
Bank stocks like Bank of America Corp. /zigman2/quotes/200894270/composite BAC -2.98% and JPMorgan Chase & Co . /zigman2/quotes/205971034/composite JPM -2.55% fell as lower long-term Treasury yields threaten to crimp lending profits.
Shares of Starbucks Corp. /zigman2/quotes/207508890/composite SBUX -0.70% and Skechers USA Inc. /zigman2/quotes/201784799/composite SKX -0.92% took a hit as the virus outbreak threatened to disrupt its Chinese operations. Cowen analysts said both companies are among the most exposed to the coronavirus impact.
The slump in crude prices took a toll on energy stocks, with shares of Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM +0.95% and Marathon Oil Corp . /zigman2/quotes/205031829/composite MRO -6.32% down sharply.
UnitedHealth Group Inc . /zigman2/quotes/210453738/composite UNH +0.29% and American Express Co /zigman2/quotes/203805826/composite AXP -3.05% led losses on the Dow Monday, followed by shares of Cisco Systems Inc . /zigman2/quotes/209509471/composite CSCO +4.88% and Visa Inc . /zigman2/quotes/203660239/composite V +0.50% .
HP Inc . /zigman2/quotes/203461582/composite HPQ +0.87% executives in a call Monday with reporters and analysts said they may be willing to explore a mergerwith Xerox Holdings Corp /zigman2/quotes/201169674/composite XRX -5.53%
What was on the calendar?
The economic calendar was light Monday. The January reading of the Chicago Federal Reserve Bank’s national activity index rose to -0.25, from -0.51 in the previous month.
How did other markets trade?
European stock benchmarks had their worst session in about four years. The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -1.44% shed 3.8% to settle at 411.86, its biggest one-day percentage drop since June 27, 2016, according to Dow Jones Market Data.
Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.17% closed down 2.3%, and stocks fell 1.6% in Hong Kong /zigman2/quotes/210598030/delayed HK:HSI -0.74% , though the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.22% lost just 0.2%. Japanese equity markets were closed Monday for a holiday.
Crude-oil prices fell 5%, with West Texas Intermediate crude for April delivery settling 4.9% lower at $50.87 a barrel, while April Brent crude , the global benchmark, lost 5.5% to finish at $55.27 a barrel.
Gold prices surged by $27.80 an ounce, or 1.7%, to settle at $1,676.60, its highest finish in seven years. Other haven assets soared, too, with the 10-year Treasury note yield /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -1.11% shedding 9.3 basis points at 1.377%, nearing its all-time low. Bond prices move in the opposite direction of yields.
Mike Murphy and William Watts contributed to this report.