On Monday markets tumbled as news over the weekend indicated that the coronavirus continued to spread in countries outside China, particularly South Korea and Italy. Even though new cases within China have peaked, uncertainty continues on how badly the work slowdown in China will affect global supply chains. The Dow Industrials finished the day down 1,031 points, or 3.56%, its sharpest decline since February 2018. The S&P 500 fell 3.35% and the Nasdaq Composite dropped 3.71%.
On Tuesday the Case-Shiller home price index for December rose .4% and consumer confidence for February declined .9 point to a still very strong 130.7. Markets continued their downward plunge after the U.S. Center for Disease Control said that it’s only a matter of time before coronavirus cases accelerate within the U.S., and that they are preparing for a potential pandemic. Ten-year Treasuries yielded 1.36% close to a record low, and gold rose to $1,640 an ounce, close to a seven-year high. The Dow Industrials finished the day down 879 points, or 3.1%.
On Wednesday new home sales for January rose 56,000 to an annualized 764,000 units and the EIA petroleum status report for the week ending February 21st saw crude oil inventory increase 500,000 barrels. Markets initially opened sharply higher, however, by the end of the day the Dow Industrials and S&P 500 closed lower and the Nasdaq Composite eked out a small gain. Yield on ten-year Treasuries sank to 1.35%, a record low.
On Thursday durable goods orders for January fell .2%, the second estimate of the 4th quarter GDP remained unchanged at 2.1% and jobless claims for the week ending February 22nd rose 8,000 to 219,000. Markets continued plummeting as the CDC reported that a person in California was infected by the coronavirus and it is unknown how it was spread. The Dow Industrials lost 1,190 points, or 4.4%, its biggest one-day points decline in history. The loss was partially fueled by Goldman Sachs’ chief U.S. equity strategist issuing a warning saying U.S. companies will generate no earnings growth in 2020.
On Friday personal income for January rose .6%, higher than expected, and consumer spending rose .2%. The PCE price index rose .1%. Shortly after market open, major indexes continued to tumble, with the Dow Industrials losing over 1000 points. Now let’s take a look at some stocks.
Co-Diagnostics, Inc. (NASDAQ: CODX) announced on Monday, that its Logix Smart™ Coronavirus COVID-19 Test has obtained regulatory clearance to be sold as an in vitro diagnostic (“IVD”) for the diagnosis of COVID-19, and is now available for purchase. Shares of Co-Diagnostics surged to over $19 on Thursday, post announcement.
Shake Shack Inc. (NYSE: SHAK) reported late Monday, financial results for the fourth quarter and full year. Fourth quarter revenue increased almost 22% to $151 million while full-year revenue amounted to almost $595 million. Shares of Shake Shack fell below $63 on Tuesday, post announcement.
Palo Alto Networks (NYSE: PANW) reported financial results for the second quarter with revenue increasing 15% year over year to $817 million. GAAP net loss for the second quarter was $74 million or $0.75 per diluted share. The board of directors authorized a $1 billion accelerated share repurchase transaction. Palo Alto shares fell below $188 on Thursday, post announcement.
Etsy, Inc. (NASDAQ: ETSY) reported fourth quarter and full year 2019 results. For the fourth quarter, gross merchandise sales from Thanksgiving through Cyber Monday increased 30% compared to the same period last year. Active buyers increased 15.9% year over year as active sellers grew 20% year over year. Etsy shares touched $60 on Thursday, post announcement.
Nutanix, Inc. (NASDAQ: NTNX) reported financial results on Wednesday for the second quarter of fiscal 20 with revenue reaching $347 million, up from $335 million a year ago. The billings segment increased almost $15 million to $428 million, and the software and support section reported $420 million, a 12% increase year-over-year. Nutanix shares fell over 28% on Thursday.