AlphaOne Capital Partners founding partner Dan Niles gives his investing tips amid coronavirus fears, as well as post-Apple’s quarterly earnings report.
U.S. equity markets were higher Monday, shrugging off the nearly 8 percent plunge in China’s Shanghai Composite, which had been closed since Jan. 22 for the Lunar New Year holiday.
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The early gains have the major averages on track to win back some of the big losses that occurred Friday as the number of confirmed cases of coronavirus surged.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 3257.44 | +31.92 | +0.99% |
| I:DJI | DOW JONES AVERAGES | 28583.74 | +327.71 | +1.16% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9258.530698 | +107.60 | +1.18% |
The coronavirus outbreak has now sickened more than 17,000 people and killed 361, according to the latest figures released by China’s National Health Commission.
In response to the outbreak, the People’s Bank of China on Sunday announced plans to inject 1.2 trillion Chinese yuan ($173 billion) into the system to cushion its blow to the economy. Monday was the first day of trading for Chinese markets, which have been closed since Jan. 22.
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In the U.S., Gilead Sciences was higher after the pharmaceutical company said it is testing its Ebola drug as a treatment for the coronavirus. Other drugmakers, like Novavax and Nanoviricides fell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GILD | GILEAD SCIENCES INC. | 66.90 | +3.70 | +5.85% |
| NVAX | NOVAVAX INC. | 7.36 | -0.26 | -3.41% |
| NNVC | NANOVIRICIDES INC | 12.51 | -4.25 | -25.39% |
Hotels, airlines and casino operators, which have been among the hardest hit sectors since the coronavirus outbreak, traded mixed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| H | HYATT HOTELS | 86.54 | +2.00 | +2.37% |
| UAL | UNITED AIRLINES HLDG. | 76.65 | +1.85 | +2.47% |
| AAL | AMERICAN AIRLINES GROUP INC. | 27.54 | +0.70 | +2.61% |
| WYNN | WYNN RESORTS LIMITED | 128.51 | +2.35 | +1.86% |
| MGM | MGM RESORTS INTERNATIONAL | 31.51 | +0.45 | +1.44% |
Elsewhere, Tesla shares crossed $700 for the first time after Panasonic Corp. said its joint venture U.S. battery business with the electric-vehicle maker posted its first profit.
J.C. Penney received a non-compliance notification from the New York Stock Exchange because its share price has failed to maintain an average closing price of at least $1 over a 30-day period. The retailer, which said it is considering a reverse stock split, has six months to regain compliance before its shares are removed from the exchange.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 707.45 | +56.88 | +8.74% |
| JCP | J.C. PENNEY | 0.73 | -0.02 | -2.16% |
Defense contractor Northrop Grumman was lower after receiving a double downgrade from “buy” to “sell” due to its book-to-bill ratio and organic sales growth lagging its peers.
Google-parent Alphabet is in focus as the tech giant is scheduled to report its quarterly results after the closing bell. Analysts surveyed by Refinitiv are expecting adjusted earnings of $12.55 a share on revenue of $46.93 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NOC | NORTHROP GRUMMAN CORPORATION | 369.20 | -5.37 | -1.43% |
| GOOG | ALPHABET INC. | 1,466.69 | +32.46 | +2.26% |
Looking at commodities, West Texas Intermediate crude oil was little changed near $51.60 a barrel and gold was lower by 0.4 percent at $1,582 an ounce.
U.S. Treasurys fell, running the yield on the 10-year note up 2.5 basis points to 1.544 percent.
In Europe, Britain’s FTSE was trading down 0.9 percent in its first day of trading following Brexit while Germany’s DAX and France’s CAC added 0.3 percent and 0.4 percent, respectively.
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Markets across Asia finished mixed despite the Shanghai Composite’s plunge. Hong Kong’s Hang Seng edged up 0.2 percent while Japan’s Nikkei fell 1 percent.
