U.S. equities disappointed on Wednesday, as most of the major benchmarks ended mostly lower. Investor sentiment was largely impacted by the news of Coronavirus spreading to the Americas and European countries.
The Dow Jones Industrial Average and broader S&P 500 incurred losses on Wednesday. The former lost 0.5% to close at 26,957.59 while the latter shed 0.4% to reach 3,116.39. The Nasdaq Composite, however, hit 8,980.77 after gaining 0.2%.
The fear-gauge CBOE Volatility Index (VIX) declined 1.1% to close at 27.56 on Feb 26. Finally, decliners outnumbered advancers on the NYSE by a 1.00-to-1 ratio.
COVID-19 Spreads Fast Outside China
Although stocks began the day with little recovery, negative sentiment loomed large over equities as investors intently tracked the rapid spreading of Coronavirus outside China. Financial markets were driven by fear rather than fact-based trading, which took a toll on equities.
As the COVID-19 infections and deaths continued to mount in parts other than China, such as Europe and the Americas, investors turned negative. In particular, cases kept rising in Italy, Iran, Japan and South Korea.
In addition, comments by various health officials worldwide fuelled investors’ fears. According to Bloomberg, a top official at the Food and Drug Administration (FDA) said that the disease was on its way to become a pandemic.
Peter Marks, head of the FDA’s Center for Biologics Evaluation and Research, said there was “significant concern” as the disease has spread to “six continents” overnight. He also mentioned that the FDA was seeking alternative sources and manufacturing in a bid to account for items such as medical devices and vital drugs.
Mixed Earnings Reports Keep Pouring In
Earnings kept coming in amid updates on the novel Coronavirus.
Shares of Etsy, Inc. ETSY gained 1.6% on Wednesday after the online market place reported quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.17. The company’s revenues of $270 million for the quarter ended December 2019 also surpassed the Zacks Consensus Estimate by 1.93%. (Read more)
Shares of BioMarin Pharmaceutical Inc. BMRN rose 0.2% on Feb 26 after the company reported quarterly earnings of $0.25 per share, which surpassed the Zacks Consensus Estimate of $0.21 per share. The biotechnology company, however, missed Zacks’ revenue estimates by 1.6% after reporting revenues of $454.44 million for the quarter ended December 2019. (Read more)
Shares of NV5 Global, Inc. NVEE declined 1.8% after the company lagged the Zacks Consensus Estimates in both earnings and revenues for the quarter ended December 2019. The company reported quarterly earnings of $0.64 per share, which missed the Zacks Consensus Estimate of $0.72. In addition, its revenues of $132.60 million for the quarter ended December 2019, lagging the Zacks Consensus Estimate by 1.8%. (Read more)
Etsy and NV5 Global sport a Zacks Rank #2 (Buy) and BioMarin Pharmaceutical carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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