FOX Business’ Hillary Vaughn discusses how a Bernie Sanders or Elizabeth Warren victory at the Iowa caucuses could impact stocks.
U.S. equity markets surged Tuesday, continuing to rebound after Friday’s steep selloff.
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The Dow Jones Industrial Average was up more than 440 points, or 1.6 percent, and has now won back virtually all of the more than 600-point drop that occurred on Friday. The S&P 500 and Nasdaq were higher by 1.5 percent and 1.6 percent, respectively.
The early gains came as the result of the Democratic caucus in Iowa remained in question due to a technology glitch. President Trump will give his State of the Union address on Tuesday evening.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 28831.82 | +432.01 | +1.52% |
| SP500 | S&P 500 | 3298.34 | +49.42 | +1.52% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9425.707711 | +152.31 | +1.64% |
Meanwhile, the coronavirus outbreak continues to spread, with the latest numbers from Beijing indicating 425 deaths and more than 20,600 people sickened.
U.S. casino operators in Macao were in focus after the gaming capital of the world shuttered casinos for two weeks in an effort to prevent the coronavirus from spreading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WYNN | WYNN RESORTS LIMITED | 131.40 | +2.81 | +2.19% |
| LVS | LAS VEGAS SANDS CORP | 68.37 | +1.81 | +2.72% |
| MGM | MGM RESORTS INTERNATIONAL | 31.99 | +0.78 | +2.50% |
American Airlines suspended flights to Hong Kong through Feb. 20 and United Airlines moved up the suspension of flights by a day to Tuesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HLDG. | 78.40 | +3.49 | +4.66% |
| AAL | AMERICAN AIRLINES GROUP INC. | 28.36 | +1.30 | +4.80% |
Elsewhere, Tesla shares were nearing the $900 level for the first time after billionaire investor Ron Baron told CNBC that the electric-vehicle maker’s revenue will reach $1 trillion in 10 years. Shares soared 19.9 percent on Monday, closing at a record-high $780.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 890.62 | +110.62 | +14.18% |
On the earnings front, Google-parent Alphabet reported its slowest revenue growth in five years, and surprised Wall Street analysts by providing sales for its YouTube and cloud-computing units.
Ferrari reported a 13.1 percent drop in fourth-quarter profit, but raised its 2020 outlook. The automaker sees full-year revenue of more than 4.1 billion euros, up from its previous forecast of more than 3.8 billion euros.
Royal Caribbean said its fourth-quarter profit fell 13.5 percent from a year ago to $273.1 million, missing estimates, amid disruptions from Hurricane Dorian. Revenue was better than expected.
Clorox reported mixed second-quarter results for fiscal year 2020, and raised the lower end of its profit outlook for the rest of the year. The consumer-products maker now sees full-year earnings between $6.10 and $6.25 a share, up from $6.05 to $6.25.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOOG | ALPHABET INC. | 1,429.00 | -56.94 | -3.83% |
| RACE | FERRARI N.V. | 165.71 | -4.54 | -2.67% |
| RCL | ROYAL CARIBBEAN CRUISES | 119.80 | +3.35 | +2.88% |
| CLX | CLOROX | 163.42 | +7.58 | +4.86% |
Commodities were mixed with gold down 1.6 percent near $1,557 an ounce and West Texas Intermediate crude oil up 0.4 percent at $50.30 a barrel after sliding into bear-market territory on Monday.
U.S. Treasurys were under pressure, running the yield on the 10-year note up 8.4 basis points to 1.604 percent.
European markets were sharply higher with Britain’s FTSE up 1.5 percent while Germany’s DAX and France’s CAC gained 1.7 percent and 1.6 percent, respectively.
Markets rallied across Asia. China’s Shanghai Composite gained 1.3 percent after tumbling 7.7 percent the prior session as traders returned to work following the Lunar New Year holiday. Elsewhere, Hong Kong’s Hang Seng jumped 1.2 percent and Japan’s Nikkei added 0.5 percent.
