Stocks – Dow Drops 100 Points at Open on Virus Fears

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEB8S161_M.jpg
© Reuters. © Reuters.

By Geoffrey Smith

Investing.com — U.S. stocks opened lower on Thursday as market participants took money off the table in response to a sharp rise in confirmed coronavirus cases in China, which tempered earlier hopes that the disease will peak soon.

The was down 130 points, or 0.4%, as of 9:44 AM ET (1444 GMT), while the was down 0.3% and the was down 0.5%.

Outside of the DJIA, Tesla (NASDAQ:) stock fell 1.4% after the electric vehicle maker said it wants to sell up to $2 billion in new stock via a secondary offering.

The broad risk-off move in markets followed a decision by Chinese authorities to rejig its way of counting cases of the Covid-19 virus in such a way as to correct previous under-reporting. The Communist Party also fired its top officials responsible for the city of Wuhan and the region of Hubei, the outbreak’s epicenter.

The outbreak was indirectly behind a 6.3% drop in Cisco Systems (NASDAQ:), which warned after the closing bell on Wednesday that related macroeconomic uncertainty was likely to depress investment spending by businesses. Cisco, a maker of routers and other telecoms gear, is viewed by some a good rough proxy for business investment.

Kraft Heinz (NASDAQ:) stock was another big loser, the food group losing 7.9% after reporting a steeper drop in organic sales for the last quarter of 2019 than had been expected. Overall organic sales fell 2.2%, rather than the 0.9% forecast, while U.S. sales fell by an even sharper 2.7%.

Among the biggest gainers was e-commerce company Shopify (NYSE:), which shrugged off valuation-driven downgrades from Credit Suisse (SIX:) and others after soaring on the back of better-than-expected earnings on Wednesday.

Also making a big move up was insurance giant AIG (NYSE:), whose core underwriting business returned to profit in the fourth quarter from a $1.1 billion loss a year earlier.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment