Stocks fell on Thursday, slipping from record highs, as investors grappled with a a jump in reported coronavirus cases and the virus’ possible economic impact.
The Dow Jones Industrials finished negative 128.11 points to 29,423.31, from Wednesday’s all-time high
The S&P 500 finished lower 5.51 points from Wednesday’s peak to 3,373.94
The NASDAQ fell 13.99 points to 9,711.97.
Microsoft shares fell about half a percent after to push the Dow lower. Cisco Systems, however, was the Dow’s biggest decliner. The industrials sector dropped 0.7% and was the biggest laggard in the S&P 500. Health care also pulled back 0.5%.
United and American Airlines both fell more than 1%. Wynn Resorts and Las Vegas Sands — two proxy stocks for the coronavirus given their exposure to China — declined by more than 2% each.
In corporate news, Cisco fell more than 5% after the company reported another decline in overall revenue. In the fourth quarter, Cisco’s revenue dropped by 4% on a year-over-year basis. That decline overshadowed a better-than-expected profit.
PepsiCo, Alibaba and Applied Materials all reported quarterly earnings that beat expectations. Applied Materials shares gained 4.7%, but PepsiCo and Alibaba dropped 0.1% and 1.6%, respectively.
The major averages hit their session lows after the CDC confirmed the 15th U.S. coronavirus case.
China said it confirmed 15,152 new cases and 254 additional deaths. That brings the country’s total death toll to 1,367 as the number of people infected jumped to nearly 60,000, according to the Chinese government.
In corporate news, Cisco fell after the company reported another decline in overall revenue. In the fourth quarter, Cisco’s revenue dropped by 4% on a year-over-year basis. That decline overshadowed a better-than-expected profit.
PepsiCo, Alibaba and Applied Materials all reported quarterly earnings that beat expectations. Applied Materials shares gained 2.9%, but PepsiCo and Alibaba dropped 0.5% and 1.9%, respectively.
Meanwhile, Tesla shares fell more than 2% after the electric car maker announced a $2 billion stock offering.
On the data front, weekly jobless claims rose marginally, but remained near multi-decade lows. The latest read on the U.S. Consumer Price Index — a widely followed measure of inflation — rose 2.5% on a year-over-year basis.
Prices for the 10-Year U.S. Treasury gained a bit of ground, lowering yields to 1.62% from Wednesday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices acquired 43 cents to $51.60 U.S. a barrel.
Gold prices hiked $7.80 to $1,579.40 U.S. an ounce.
