Stock market news live: Stocks walloped by rising coronavirus cases, which near 10K

Fri, Jan 31, 2020, 4:14 p.m. 10 min read

3:18 p.m. ET: S&P 500 posts worst one-day drop in four months

The S&P 500 closed out its worst one-day session since October, and the Dow was down the most since August as coronavirus fears gripped markets. In bond markets, the 10-year and 3-month Treasury yield curve inverted for the first time in more than three months.

Here’s where the markets settled at the end of regular trading:

S&P 500 (^GSPC): -1.77% or -58.14 points to 3,225.52
Dow (^DJI): -2.09% or -603.41 points to 28,256.03
Nasdaq (^IXIC): -1.59% or -148 points to 9,150.94
Crude oil (CL=F): -$0.53 or -1.02% to $51.61 a barrel
Gold (GC=F): +$1.60 or +0.1% to $1,590.80 per ounce

3:18 p.m. ET: Dow drops 600+ points as sell-off accelerates

Stocks dropped further with less than an hour less of trading. The Dow sank more than 600 points, led by a more than 4% slump in shares of each of Dow, Exxon Mobil, Visa and Chevron.

Here were the main moves in markets, as of 3:18 p.m. ET:

S&P 500 (^GSPC): -1.75% or -57.33 points to 3,226.33
Dow (^DJI): -2.14% or -616.23 points to 28,243.21
Nasdaq (^IXIC): -1.53% or -143.12 points to 9,157.65
Crude oil (CL=F): -$0.7 or -1.43% to $51.44 a barrel
Gold (GC=F): +$3.20 or +0.2% to $1,592.40 per ounce

2:05 p.m. ET: S&P 500 poised to turn negative for the year as losses hold

The S&P 500 was on track to close in negative territory on the year during Friday’s session. Each of the three major indices was off more than 1% as rising coronavirus fears triggered a sell-off in risk assets.

The S&P 500 would be negative for the year-to-date if it closes below 3,230.78. According to veteran market watcher Tom Lee:

...this does not feel like a reflexive 2%-3% drawdown that 'needs to be bought' but rather, this feels like the start of a broader correction. Hence, the character of the market is changing from the relentless buying since October, to one where we need to 'wait for the initial bottom' before becoming more aggressive.

Support for the S&P is seen near the 50-day moving average at 3211.

12:40 p.m. ET: Stocks skid on report US may tighten China travel further

A report that the U.S. is weighing even tighter China travel restrictions amid the coronavirus outbreak has pushed stocks to new session lows — with the S&P 500 Index turning red for the year. Recall that on Thursday, the U.S. already issued a “Level 4” travel warning to dissuade trips to the world’s second-largest economy.

12:30 p.m. ET: Luckin Coffee slumps on short-seller report

The Chinese coffee chain, which has quickly become a Wall Street darling, is falling out of bed in Friday’s trading, dropping by over 23% after a report from short-selling firm Muddy Waters Research alleged financial fraud. Luckin (LK), a Starbucks (SBUX) competitor, was already under pressure as the mainland’s coronavirus fears spook investors and curb risk appetite.

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12:00 p.m. ET: Dow drops 350+ points amid coronavirus fears

Stocks held lower during the intraday session, hit with fears over the Wuhan coronavirus.

Here were the main moves in markets, as of 12 p.m. ET:

S&P 500 (^GSPC): -1.14% or -37.52 points to 3,246.14
Dow (^DJI): -1.34% or -385.67 points to 28,473.77
Nasdaq (^IXIC): -0.84% or -78.26 points to 9,220.95
Crude oil (CL=F): +0.12% or +0.06% to 52.20 a barrel
Gold (GC=F): -0.01% or -0.20 to 1,589.00 per ounce

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11:00 a.m. ET: Reynolds Wrap maker nets over $1 billion in IPO

Reynolds Consumer Products Inc., the maker of Reynolds Wrap aluminum foil and Hefty trash bags, rose in its trading debut after raising $1.23 billion in the biggest initial public offering by a household goods maker.

The company’s shares rose Friday as much as 5.8% from the $26 offer price.

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10:45 a.m. ET: Stocks hammered as coronavirus fears bite

Delta’s move to suspend all flights to China — amid reports that American Airlines may follow suit — help ratchet up coronavirus fears in the market. All major indexes are pinned at session lows in late morning trading, with the S&P 500 (^GSPC), Dow (^DJI) and the Nasdaq (^IXIC) all down by at least 1%.

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9:45 a.m. ET: Amazon returns to trillion-dollar market-cap club as shares soar 8%

Amazon (AMZN) handily topped consensus expectations in fourth-quarter earnings results, dazzling the Street and pushing shares above $2,000 apiece. The company’s market capitalization jumped back above $1 trillion, joining the likes of Apple, Microsoft and Google-parent Alphabet.

Amazon’s fourth-quarter earnings per share totaled $6.47, well above consensus estimates for $4.11. The company returned to year-over-year earnings growth, after last quarter posting a decline as high costs from ramping up one-day shipping bit into profitability. Fourth-quarter revenue of $87.6 billion was also ahead of the $86.17 billion expected.

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9:38 a.m. ET: Caterpillar shares fall around market open as company warns of continued uncertainty

Dow-component Caterpillar (CAT) posted a fourth-quarter earnings beat, but its outlook disappointed as the company warned against future demand concerns stemming from an uncertain economic backdrop. Shares extended losses from early trading and opened about 2% lower.

Fourth-quarter adjusted earnings were $2.63 per share, topping estimates for $2.37. Caterpillar said this was driven by cost controls rather than an increase in sales volumes, with fourth-quarter revenue of $13.14 billion falling 8% over last year.

Caterpillar expects full-year 2020 earnings per share will be in a range of $8.50 to $10.00, or short of the $10.55 expected.

“We expect continued global economic uncertainty to pressure sales to users in 2020 and cause dealers to further reduce inventories,” CEO Jim Umpleby said in a statement.

The CAT logo is seen on the back of a Caterpillar machine on a lot at Milton CAT in North Reading, Massachusetts January 23, 2013. Caterpillar, the world's largest maker of tractors and excavators, took a $580 million charge last week as a result of "accounting misconduct" at a unit of a Chinese mining equipment company it bought last year. REUTERS/Jessica Rinaldi (UNITED STATES - Tags: BUSINESS CONSTRUCTION LOGO)

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9:34 a.m. ET: Stocks mostly lower as coronavirus fears flare

The S&P 500 and Dow opened lower as fears over the coronavirus and some weak earnings results weighed on the indices. Visa, Exxon Mobil, Chevron and Caterpillar were the laggards in the Dow, with each of these companies reporting results late Thursday or early Friday that failed to impress Wall Street.

Here’s a look at markets as of 9:34 a.m. ET:

S&P 500 (^GSPC): -0.37% or -12.29 points to 3,271.37
Dow (^DJI): -0.69% or -198.21 points to 28,661.23
Nasdaq (^IXIC): +0.01% or +1.11 points to 9,300
Crude oil (CL=F): -0.58% or -0.3 to 51.84 a barrel
Gold (GC=F): -0.25% or -4.00 to 1,585.20 per ounce

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9:05 a.m. ET: Exxon Mobil, Chevron shares fall after oil majors post mixed results

Exxon Mobil and Chevron posted mixed results for their fiscal fourth quarters, extending concerns for domestic players in the energy sector.

Exxon Mobil (XOM) delivered adjusted earnings per share of 41 cents, missing expectations by 2 cents for the quarter. This, however, excluded the positive impact of a one-time $3.7 billion gain from selling its assets in Norway as part of a broader divestment plan in Europe. Fourth-quarter revenue of $67.2 billion was well ahead of the $64.2 billion expected. Natural gas volumes were down 4% over last year, driven by declines in global gas prices as supplies rise. Overall production topped 4 million barrels a day of oil equivalent.

Chevron (CVX) posted fourth-quarter sales that missed estimates, while adjusted earnings per share of $1.49 were ahead of expectations by 4 cents. However, on an unadjusted basis, Chevron’s loss of $6.6 billion was the largest in a decade, driven by a $10.4 billion write-down of the value of its investments in natural gas fields in North America. Chevron’s production topped 3 million barrels a day of oil equivalent for the first time ever.

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7:44 a.m. ET: British pound climbs with Brexit departure due today

It’s Brexit Day overseas, with the United Kingdom due to leave the European Union at 6 p.m. eastern time (11 p.m. GMT) on Friday, more than three-and-a-half years after the Brexit referendum.

Britain, a member of the EU since 1973, is poised to leave the bloc with 27 countries remaining. The UK and EU will enter a transition period through the end of 2020, allowing people and trade to flow between borders as usual, while British and EU negotiators try to come to a longer-term free trade deal by the end of the year.

The British pound climbed 0.2% to 1.18 against the euro (GBPEUR=X) and 0.3% to above 1.31 against the U.S. dollar (GBPUSD=X) Friday morning eastern time. The Bank of England’s monetary policy decision to hold interest rates unchanged on Thursday, when a cut had been expected by some, further supported the currency.

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7:33 a.m. ET: Stock futures fall as coronavirus spreads further

U.S. stock futures tumbled as fears over the coronavirus continued to brew.

The World Health Organization declared the virus an international emergency Thursday afternoon as the outbreak spread well beyond China. As of Friday, the number of confirmed global cases jumped by more than 2,000 to near 10,000. The virus has led to more than 200 deaths worldwide to date.

Here were the main moves during the pre-market session, as of 7:33 a.m. ET: