Coronavirus fears caused deep market sell-off, airline stocks tank after halting flights to China plus more in Friday’s Closing Bell on Money and Markets.
The Top Story
Any Dow Jones Industrial Average gains the market had over the course of January were wiped out on the last day of the month.
As fears over the spread of the coronavirus hit, the global economy took a stronger grip on investors and U.S. equities bore the brunt.
The Dow Jones Industrial Average plummeted 600 points, or 2.1%. The Nasdaq Composite dropped 1.6% and the S&P 500 was down 1.7%.
While losses Friday put the S&P 500 flat for the month, the Dow was actually in the negative. That sends a mixed message for the rest of 2020, especially considering the potential impact from the upcoming presidential election. Friday’s was one of the 10 biggest single-day drops in the last 12 months, according to CNBC.
For more on what to look for in February, check out our five investment trends to watch here.
Money and Markets: Closing Bell*
S&P 500: 3,225 (-58 points, -1.7%)
DOW: 28,256 (-603 points, -2.1%)
NASDAQ: 9,150 (-148 points, -1.6%)
GOLD: $1,587.20 (+$13.40, +0.8%)
BITCOIN: $9.330.70 (-$217.25, -2.2%)
U.S. 10-YEAR YIELD: 1.51%
*- as of 4:22 p.m.
A Big Win
In this morning’s Wall Street Wake-Up, we told you to expect good things from Amazon.com Inc. (Nasdaq: AMZN). Well, the company didn’t disappoint as shares climbed 7.3% through Friday afternoon. It would have likely been higher and gains had reached 12% before falling thanks in large part to coronavirus fears. Check out our analysis of Amazon’s stocks here.
We also told you about Visa Inc. (NYSE: V). Earnings per share were just in line with forecasts and revenue was down. Shares dropped 4.4% Friday.
Perhaps our biggest mover was Navistar International Corp. (NYSE: NAV) which saw its share price jump nearly 52% after news began circulating that Volkswagen’s Traton truck unit was offering $2.9 billion for its remaining shares in Navistar.
M&A News
Idex Corp. (NYSE: IEX) is spending $125 million to acquire Phoenix-based Flow Management Devices LLC. The company said it expects the deal to be closed by the end of Q1. Shares of Idex Corp. fell 1.2%, mostly due to quarterly revenue and earnings misses.
Hilltop Holdings Inc. (NYSE: HTH) is selling property insurer National Lloyds Corp. for $150 million to San Diego-based Align Financial Holdings. Hilltop Holding shares fell 8.1%.
Golden Nuggets
Precious metal markets were mixed Friday, but both gold and silver made solid gains.
Gold prices jumped $13.40 to $1,587.20 an ounce while silver moved up $0.20 to stay at just above $18 an ounce.
Gold and silver prices gain as safe havens as equities markets tumbled. To see our take on what to look for from safe havens in February, check out our report here.
Cannabis Corner
Another day, another dip for cannabis stocks.
Companies like Aurora Cannabis Inc. (NYSE: ACB) and Canopy Growth Corp. (NYSE: CGC) suffered losses Friday afternoon. Aurora Cannabis dropped more than 2% while Canopy Growth was down more than 3%.
Stock Market Update
The three largest airlines in the U.S. canceled more flights to and from China Friday as coronavirus fears continued.
American Airlines Group Inc. (Nasdaq: AAL) decided to suspend all travel between the U.S. and China until March 27. American had only planned to suspend flights from Los Angeles to Shanghai and Beijing starting Feb. 6. However, a lawsuit filed by the company’s union Thursday prompted Friday’s blanket suspension.
Delta Air Lines Inc. (NYSE: DAL) said it was suspending all flights from the U.S. to China from Feb. 6 to April 30. The airline said routes will be open until Feb. 5 to “ensure customers looking to exit China have options to do so.”
United Airlines Holdings Inc. (Nasdaq: UAL) is suspending some routes between the U.S. and China through March 28.
Shares of all three companies were down between 2% and 4%.
Today’s Big Winners:
Amazon.com Inc. (Nasdaq: AMZN) +7.3%
Colgate-Palmolive Co. (NYSE: CL) +6.2%
Charter Communications Inc. (Nasdaq: CHTR) +4.9%
IBM Corp. (NYSE: IBM) +5.1%
Arthur Gallagher & Co. (NYSE: AJG) +2.2%
Today’s Big Losers:
Broadridge Financial Solutions Inc. (NYSE: BR) -8%
Phillips 66 (NYSE: PSX) -5.2%
Amgen Inc. (Nasdaq: AMGN) -4.4%
United Airlines Holdings Inc. (Nasdaq: UAL) -3.8%
American Airlines Group Inc. (Nasdaq: AAL) -3.1%
Check back for the most important news and numbers each day after the Closing Bell, only on Money and Markets.
Don’t forget about “Marijuana Markets: a POTcast,” featuring the biggest cannabis news and investment notes from Banyan Hill’s Anthony Planas, here on Money and Markets each Saturday morning.