As concerns over the coronavirus (also referred to as COVID-19) continue to dominate news headlines, cause volatility in the marketplace, and test investor confidence in securities markets, one thing remains unchanged - Leigh Baldwin & Co. and its commitment to assist clients through turbulent times. Along with the securities markets, we remain open and available to clients, ready to assist with any needs, questions, or concerns as they arise.
The markets open lower as Wallstreet woke up in a lousy mood. A number of stocks are getting downgraded this morning as the analysts don't believe in the recent rally. The Dow Jones Industrial Average fell 66 points to 7,950. The S&P 500 Index declined 9 points to 833, while the Nasdaq Composite shed 23 points to 1,598. The fame banking analyst Mike Mayo is out negative on the big banks and the regionals, saying things will get worse not better. AXA is down 11% on a downgrade. Lincoln National is down 7% on mounting concerns regarding their debt level. HSBC is unchanged even though the firm is raising $18 billion through a stock offering, diluting current shareholders. In the tech sector, SunMicro is down 21% as they either rejected the IBM deal or it was pulled. Cisco and Juniper are lower on downgrades. Adobe and Corning are lower even though both were upgraded. Research in Motion is continuing its rally after stellar earnings last week. In the retail sector, Abercrombie was upgraded while American Eagle was downgraded. Both are lower. Dreamworks is down 9% on a downgrade. Campbell Soup is lower on a downgrade. Fed Ex is lower even though it was upgraded. After the first hour, the averages pushed lower. The Dow dropped 100 points. The Nasdaq declined 35 points. The commodities are under selling pressure. The healthcare sector is one of the few sectors performing well. Through the morning and into the lunch hour, the averages remained weak. Then, slowly the averages recovered bit by bit into the close. The Dow Jones Industrial Average finished down 41 points at 7,975. The S&P 500 shed 7 points, or 0.8%, to 835, while the Nasdaq Composite dropped 15 points to 1,606.
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