Day Traders Diary
The major averages suffered their worst day since October after more cases of the coronavirus were confirmed over the weekend, ratcheting up worries over the virus' impact on the world economy.The Dow Jones Industrial Average fell 453 points, or 1.6% to 28,535, wiping out the average's gains for the year. The Dow is also suffering its longest losing streak since August. The S&P 500 dropped 1.6% to 3,243, snapping a 74-session streak without a 1% decline. The Nasdaq Composite had its worst day since August, dropping 1.9% to 9,139.
There are 2,862 confirmed cases so far in China and the death toll in China has risen to 81. The World Health Organization's director general is traveling to China to meet with government and health officials. In the U.S., a fifth case of coronavirus was confirmed over the weekend.
Airline stocks United and Delta both dropped more than 3.3%. American slid 5.5%. Gaming stocks such as Las Vegas Sands and Wynn Resorts declined by 6.8% and 8.1%, respectively. MGM Resorts slid 3.9%
The volatility index or VIX index jumped 25.2% to $18.23, up 3.67 points. A close above $20 a share sometimes signals a short-term bottom.
On the plus side, D.R. Horton rose 2% following strong earnings and raised guidance to 2020.
Investors flocked to U.S. Treasuries. The 2-yr yield fell five basis points to 1.43%, and the 10-yr yield fell eight basis points to 1.61%. The U.S. Dollar Index increased 0.1% to 97.94.
All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.