The Dow Jones Industrial Average closed at 25,766.64 on Thursday with a loss of 1,190.95 or -4.42%. The S&P 500 closed at 2,978.76 for a loss of 137.63 points or -4.42%. The Nasdaq Composite closed at 8,566.48 for a loss of 414.29 points or -4.61%. The VIX Volatility Index was higher at 37.73 for a gain of 10.17 points or 36.90%.
Thursday’s market movers
U.S. indexes moved into correction territory, falling approximately 10% from recent peaks as investors continued to worry about coronavirus risks. In California, a man contracted the virus with no known contacts or international travel. The president addressed the nation Wednesday night, reporting that a task force has been created with oversight by Vice President Mike Pence.
A breakdown of virus reporting includes the following:
- China: 78,514 cases.
- South Korea: 1,766 cases.
- Italy: 655 cases.
- Iran: 245 cases.
- Japan: 207 cases.
- Singapore: 96 cases.
- Hong Kong: 92 cases.
- U.S.: 60 cases.
Earnings headlines in focus as the fourth-quarter calendar neared an end included the following:
- Innovative Industrial Properties (IIPR, Financial): Revenue of $17.7 million increased 270.3% year over year and beat estimates by $3.33 million. Fourth-quarter funds from operations of $1.09 beat estimates by 22 cents.
- Best Buy (BBY, Financial): Revenue of $15.2 billion increased 2.7% year over year and beat estimates by $150 million. Fourth-quarter GAAP earnings of $2.84 per share beat estimates by 10 cents and non-GAAP earnings of $2.90 beat estimates by 14 cents.
Economic reports affecting market trading included the following:
- Gross domestic product growth was reported at 2.1% for the fourth quarter in the second estimate.
- Durable goods orders decreased 0.2% in January. Durable goods orders excluding transportation increased 0.9% in January following an increase of 0.1%. Durable goods orders excluding defense increased 3.6% in January following a decrease of 1.9%.
- Jobless claims increased to 219,000 from 211,000 in the previous week. Continuing jobless claims decreased to 1,724,000 from 1,733,000.
- Pending home sales increased 5.2% in January and 5.7% year over year.
- The Treasury held auctions for four-week bills at a rate of 1.53%, eight-week bills at a rate of 1.50% and seven-year notes at a rate of 1.247%.
- Mortgage rates were lower according to Freddie Mac’s weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.45%, down from 3.49%. The 15-year fixed-rate mortgage averaged 2.95%, down from 2.99%.
In the S&P 500, real estate, energy and technology led losses. In the Dow Jones Industrial Average, the following stocks led losses:
- Microsoft (MSFT, Financial) -5.89%
- Apple (AAPL, Financial) -5.52%
- Dow Inc. (DOW, Financial) -5.41%
- Exxon (XOM, Financial) -4.87%
- Intel (INTC, Financial) -4.78%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,500.82 for a loss of 51.94 points or -3.34%. The S&P 600 closed at 899.84 for a loss of 35.19 points or -3.76%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,737.89 for a loss of 351.49 points or -3.48%. The Dow Jones U.S. Small-Cap Value Index closed at 8,589.66 for a loss of 351.41 points or -3.93%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,851.69 for a loss of 70.28 points or -3.66%; the S&P 100 at 1,331.44 for a loss of 64.01 points or -4.59%; the Nasdaq 100 at 8,436.67 for a loss of 437.09 points or -4.93%; the Russell 3000 at 1,745.52 for a loss of 79.22 points or -4.34%; the Russell 1000 at 1,648.94 for a loss of 75.82 points or -4.40%; the Wilshire 5000 at 30,476.48 for a loss of 1,386.22 points or -4.35%; and the Dow Jones U.S. Select Dividend Index at 667.07 for a loss of 31.46 points or -4.50%.
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