Stocks got crushed Monday, as coronavirus fears surged and an oil price war sent shockwaves through global markets.
The Dow (^DJI) tanked 2,013.76 points, or 7.79%, for its worst day since Oct. 15, 2008. The S&P 500 (^GSPC) plunged 7.60%, while the Nasdaq (^IXIC) sank 7.29% during Monday’s brutal trading session. As of Monday afternoon, the World Health Organization reported more than 106,000 confirmed cases of the virus worldwide and more than 3,800 deaths.
All eyes will be on the markets again Tuesday. “One positive about the recent market weakness has been that stocks are now less expensive,” LPL Financial Senior Market Strategist Ryan Detrick wrote in an email Monday. “The forward price-to-earnings (P/E) ratio for the S&P 500 Index recently dropped about 2 points from a multi-year high of 19 to 17. Considering the historically low interest rates and continued low inflation, we find stocks to be quite attractive for suitable investors at this point.”
On the corporate earnings side, investors will turn their attention to Dick’s Sporting Goods (DKS) before market open. The sporting goods retailer is expected to report adjusted earnings of $1.22 on $2.56 billion in revenue during its fourth quarter, according to analysts surveyed by Bloomberg. Adjusted comparable sales is estimated to have risen 3%.
Dick’s fourth quarter follows a blockbuster third quarter in which the retailer reported top and bottom line beats. Same-store sales soared a whopping 6% compared to estimates for 2.9% growth. The company also boosted its full-year guidance which sent shares skyrocketing.
However, shares of Dick’s have tumbled 31% this year and nearly 8% over the past 12 months. The options market is implying a 12.5% move in either direction for the stock following the earnings announcement. The average post-earnings stock move over the past eight quarters was about 8.8%.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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