The Nasdaq Composite and S&P 500 clinched closing records on Monday as investors took heart in mostly solid U.S. fourth-quarter corporate earnings and looked beyond concerns about the coronavirus outbreak’s potential disruption to global supply chains. The Nasdaq Composite Index finished at a record 9,628.39.
Joy Wiltermuth and Sunny Oh for MarketWatch:
The Dow Jones Industrial Average rose 174.31 points to end at 29,276.82, a gain of 0.6%. The S&P 500 index advanced 24.38 points, or 0.7%, ending at 3,352.09. The Nasdaq Composite Index added 107.88 points, or 1.1%, to finish at 9,628.39…
“Coronavirus fears remain at the top of investors’ minds,” wrote Arnim Holzer, macro strategist for EAB Investment Group, underscoring that bonds seem to be confirming those concerns more than equities. “The Fed’s liquidity support can help to support valuations,” Holzer said of stock prices. But added that “ultimately muted Asian GDP growth and earnings expectations” will be important to watch…
China’s health ministry on Monday said another 3,062 cases had been reported over the previous 24 hours, raising the mainland’s total to 40,171. The death toll grew by 97 to 910, surpassing the 774 attributed to the severe acute respiratory syndrome, or SARS, a 2003 viral outbreak that originated in China. “As long as investors don’t perceive a threat to corporate earnings and the U.S. economy from the virus, then the market can continue to trade higher on better economic data and better-than-expected earnings,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, told MarketWatch in an email.
MacDailyNews Take: Hopefully, in regard to 2019-nCoV, our little saying holds true:
People tend to fear the worst. It almost never happens. – MacDailyNews, May 14, 2019
Seems a bit early to be looking past the Coronavirus if you ask me..