1/23/20 Market Notes
After gaining nearly ½% stocks relinquished their gains to close near the flat line. The Dow Jones Industrial Average lost 0.03%, while the S&P 500 gained 0.03%, as six of the eleven sectors comprising the index rose. The economically sensitive Industrials and Materials sectors fared worst, while the Technology sector rose the most, helping lift the NASDAQ by 0.14%. Copper fell 0.86% as supply chain fear related to the coronavirus pressured commodities as a whole, driving gold prices slightly lower and causing a near 3% decline in oil prices. The benchmark Ten Year Treasury yield was mostly unchanged, ending the session at 1.767%, while the U.S. dollar weakened slightly.
Intel (INTC), Intuitive Surgical (ISRG) and Proctor & Gamble (PG) are amongst the 86 companies reporting earnings today, as investors also get the latest weekly jobless claims data and Leading Indicators report this morning. So far, earnings have been relatively strong, and while early in the reporting season, indications are that we may see a year over year increase in earnings as opposed to the ½% drop analysts forecast heading into the reporting season.
The main Chinese stock index, the Shanghai Index, is down nearly 3% overnight, as authorities closed off 2 more cities in an effort to stop the fast spreading coronavirus. Other regional indexes are down about 1%, while their European counterparts are only off a fraction of a percent.
Premarket U.S. equity futures are pointing to a mixed open, ahead of key earnings report and economic data.
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.