1/22/20 Market Notes
Blame it on the flu, or more to the point an outbreak of the Coronavirus in the United States. The bottom line is that the Dow Jones Industrial Average ended about 150 points or ½% lower, while the S&P 500 and NASDAQ suffered a 0.27% and 0.19% respective decline. On a sector basis, four of the eleven sectors comprising the S&P 500 ended higher, led by the traditionally defensive Utilities and Real Estate sectors, while the economically sensitive Industrial and Materials sectors led to the downside. The benchmark Ten Year Treasury Yield declined to about 1 ¾%, while gold prices and the U.S. dollar edged higher.
Earnings continue to exceed expectations, as bellwethers such as IBM impressed market participants with strong results, causing the Dow component to surge about 5% in afterhours trading. Looking ahead, 59 companies are reporting fourth quarter results today, including Johnson & Johnson (JNJ), Abbott Labs (ABT) and Texas Instruments (TXN). Furthermore, investors will also get the latest Existing Home Sales data later this morning.
On the international front, all eyes are on Davos, where political and business leaders opine on the state of the world and decry whatever ails them. Asian bourses are about ¾% higher overnight, as aggressive steps to combat the Coronavirus are being taken by China. European shares are mixed as investors in the region weigh economic data and the upcoming Brexit debacle. Premarket U.S. equity futures are pointing to a slightly higher open, as investors are set to ignore the Impeachment debacle and instead focus on the relatively strong earnings reports.
Disclosures: This market commentary is written by the 1879 Advisors Investment Committee and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.