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US Indexes Continue to Descend Thursday

The Dow Jones Industrial Average closed at 25,766.64 on Thursday with a loss of 1,190.95 or -4.42%. The S&P 500 closed at 2,978.76 for a loss of 137.63 points or -4.42%. The Nasdaq Composite closed at 8,566.48 for a loss of 414.29 points or -4.61%. The VIX Volatility Index was higher at 37.73 for a gain of 10.17 points or 36.90%.

Thursday's market movers

U.S. indexes moved into correction territory, falling approximately 10% from recent peaks as investors continued to worry about coronavirus risks. In California, a man contracted the virus with no known contacts or international travel. The president addressed the nation Wednesday night, reporting that a task force has been created with oversight by Vice President Mike Pence.

A breakdown of virus reporting includes the following:

  • China: 78,514 cases.
  • South Korea: 1,766 cases.
  • Italy: 655 cases.
  • Iran: 245 cases.
  • Japan: 207 cases.
  • Singapore: 96 cases.
  • Hong Kong: 92 cases.
  • U.S.: 60 cases.

Earnings headlines in focus as the fourth-quarter calendar neared an end included the following:

  • Innovative Industrial Properties (NYSE:IIPR): Revenue of $17.7 million increased 270.3% year over year and beat estimates by $3.33 million. Fourth-quarter funds from operations of $1.09 beat estimates by 22 cents.
  • Best Buy (NYSE:BBY): Revenue of $15.2 billion increased 2.7% year over year and beat estimates by $150 million. Fourth-quarter GAAP earnings of $2.84 per share beat estimates by 10 cents and non-GAAP earnings of $2.90 beat estimates by 14 cents.

Economic reports affecting market trading included the following:

  • Gross domestic product growth was reported at 2.1% for the fourth quarter in the second estimate.
  • Durable goods orders decreased 0.2% in January. Durable goods orders excluding transportation increased 0.9% in January following an increase of 0.1%. Durable goods orders excluding defense increased 3.6% in January following a decrease of 1.9%.
  • Jobless claims increased to 219,000 from 211,000 in the previous week. Continuing jobless claims decreased to 1,724,000 from 1,733,000.
  • Pending home sales increased 5.2% in January and 5.7% year over year.
  • The Treasury held auctions for four-week bills at a rate of 1.53%, eight-week bills at a rate of 1.50% and seven-year notes at a rate of 1.247%.
  • Mortgage rates were lower according to Freddie Mac's weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.45%, down from 3.49%. The 15-year fixed-rate mortgage averaged 2.95%, down from 2.99%.

In the S&P 500, real estate, energy and technology led losses. In the Dow Jones Industrial Average, the following stocks led losses:

  • Microsoft (NASDAQ:MSFT) -5.89%
  • Apple (NASDAQ:AAPL) -5.52%
  • Dow Inc. (NYSE:DOW) -5.41%
  • Exxon (NYSE:XOM) -4.87%
  • Intel (NASDAQ:INTC) -4.78%

Small-cap stocks

In small caps, the Russell 2000 closed at 1,500.82 for a loss of 51.94 points or -3.34%. The S&P 600 closed at 899.84 for a loss of 35.19 points or -3.76%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,737.89 for a loss of 351.49 points or -3.48%. The Dow Jones U.S. Small-Cap Value Index closed at 8,589.66 for a loss of 351.41 points or -3.93%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,851.69 for a loss of 70.28 points or -3.66%; the S&P 100 at 1,331.44 for a loss of 64.01 points or -4.59%; the Nasdaq 100 at 8,436.67 for a loss of 437.09 points or -4.93%; the Russell 3000 at 1,745.52 for a loss of 79.22 points or -4.34%; the Russell 1000 at 1,648.94 for a loss of 75.82 points or -4.40%; the Wilshire 5000 at 30,476.48 for a loss of 1,386.22 points or -4.35%; and the Dow Jones U.S. Select Dividend Index at 667.07 for a loss of 31.46 points or -4.50%.

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This article first appeared on GuruFocus.