Stocks Fall With Tech Leading Losses; Dollar Jumps: Markets Wrap
Added 02-20-20 01:04:03pm EST - “(Bloomberg) -- U.S. equities fell on concern that the coronavirus that originated in China will take a heavy toll on corporate earnings. The dollar jumped and gold traded at a seven-year high as investors sought havens.Microsoft Corp.,…” - Finance.yahoo.com
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(Bloomberg) -- U.S. equities fell on concern that the coronavirus that originated in China will take a heavy toll on corporate earnings. The dollar jumped and gold traded at a seven-year high as investors sought havens.
Microsoft Corp., Apple Inc. and other big tech names led losses after Japan reported two deaths and South Korea confirmed its first fatality from the disease amid a report the illness was spreading in Beijing. ViacomCBS Inc. tumbled after sales missed estimates, while Morgan Stanley dropped after agreeing to buy E*Trade Financial Corp. for $13 billion. Subpar results from AXA SA and Telefonica SA weighed on European gauges.
The yen extended its decline toward 112 per dollar amid disappointing economic news and early positioning before the fiscal year-end next month. Treasuries rallied.
Sentiment turned sharply negative Thursday, a day after equities reached record highs, as the infection that originated in China continues to expand beyond the mainland. Earnings misses are adding to the gloom, alongside fresh warnings on the pathogen’s impact from A.P. Moller-Maersk A/S, the world’s largest container shipping firm, and Air France-KLM. Goldman Sachs Group Inc.’s chief equity strategist said a near-term correction for the stock market is looking more probable.
“This is all this fear trade of the coronavirus still playing out,” said John Ham, an associate adviser at New England Investment and Retirement Group. “You see the markets shrug it off and then get nervous, shrug it off and then get nervous.”
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