The Dow Jones Industrial Average closed at 27,960.80 on Monday with a loss of 1,031.61 points or -3.56%. The S&P 500 closed at 3,225.89 for a loss of 111.86 points or -3.35%. The Nasdaq Composite closed at 9,221.28 for a loss of 355.31 points or -3.71%. The VIX Volatility Index was higher at 25.03 for a gain of 7.95 points or 46.55%.
Monday’s market movers
U.S. indexes wiped out the year’s gains on Monday. Stocks ended lower after investors fled equities following news of the coronavirus spreading beyond China. In Italy, 152 people were reported with the virus. In South Korea, infections increased to around 800. Bond prices and gold surged for the day, while oil prices were lower on the concerns.
Over the weekend, Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway released its annual results. Net earnings increased to $81.4 billion in 2019, up from $4.02 billion. Operating earnings were down at $24 billion from $24.8 billion. Both the Class A (BRK.A, Financial) and Class B (BRK.B, Financial) shares were down approximately 3% Monday.
Economic reports affecting market trading included the following:
- The Chicago Fed National Activity Index improved to -0.25 in January from -0.51.
- The Treasury held auctions for three-month bills at a rate of 1.505% and six-month bills at a rate of 1.44%.
- The Fed’s Mester acknowledged the risks of the coronavirus for the global economy, but didn’t suggest that the risks would lead to a rate cut.
In the S&P 500, energy and technology led losses. In the Dow Jones Industrial Average, the following stocks led losses:
- UnitedHealth (UNH, Financial) -7.84%
- American Express (AXP, Financial) -4.97%
- Cisco (CSCO, Financial) -4.96%
- Visa (V, Financial) -4.80%
- Apple (AAPL, Financial) -4.74%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,628.10 for a loss of 50.50 points or -3.01%. The S&P 600 closed at 980.05 for a loss of 29.57 points or -2.93%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,569.17 for a loss of 340.31 points or -3.12%. The Dow Jones U.S. Small-Cap Value Index closed at 9,435.51 for a loss of 270.85 points or -2.79%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,022.57 for a loss of 61.76 points or -2.96%; the S&P 100 at 1,440.32 for a loss of 53.57 points or -3.59%; the Nasdaq 100 at 9,079.63 for a loss of 367.06 points or -3.89%; the Russell 3000 at 1,893.00 for a loss of 64.64 points or 3.30%; the Russell 1000 at 1,787.99 for a loss of 61.43 points or -3.32%; the Wilshire 5000 at 33,052.00 for a loss of 1,131.57 points or -3.31%; and the Dow Jones U.S. Select Dividend Index at 730.74 for a loss of 20.14 points or -2.68%.
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