Tuesday was a largely good day for the US Stock market as investors focused on earnings seasons – though a slight hitch in bond markets surprised many.
Tuesday’s smooth trading as especially comforting after Monday, where both Dow Jones and S&P 500 saw their steepest falls since October. But yesterday Dow Jones rose 0.7% while S&P 500 rose 1%. Nasdaq Composite, which comprises the majority of US tech industry, rose even better at 1.4%. Stoxx Europe also gained 0.8%. However, Chinese and Hong Kong exchanges were closed in view of the Lunar New Year.
Investors recognize the threat of coronavirus on the market – Monday’s fall is attributed to the deadly outbreak by many. However, experts like Ryan Detrick (senior marketing strategist, LPL Financial) feel confident that the US economy is in “good shape” and should be able to withstand the panic around coronavirus. China might not be so lucky – the deaths of 100 people and infection in further 4,500 has stunted an already slow Chinese economy. This becomes a cause of worry for the global market too, as China’s growth would impact any projection for future global markets.
After markets closed on Tuesday, Apple (which happens to be the largest company in the US) showed record revenues. It marked its return to profitable growth as the shares of the company continued to rise by 2.6% in after-hours. We will have to wait till the weekend to see how other giants like Google, Facebook and Amazon fared in comparison. Among the equities, things were not so bright. McCormick (down 3.9%), Harley-Davidson (down 3%), 3M (down 5.7%) – all saw decline.