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Dow suffers 5-day dive on coronavirus fears

Credit: Reuters Studio
Published on February 26, 2020 - Duration: 01:58s

Dow suffers 5-day dive on coronavirus fears

Most of the U.S. stock market fell for a fifth straight session Wednesday, though the Nasdaq ended higher, as the latest coronavirus headlines kept investors on edge.

Conway G.

Gittens reports.

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Dow suffers 5-day dive on coronavirus fears

Volatility was the buzz word on trading floors after the stock market swung between sharp gains and losses Wednesday, following a four-day slump that wiped out nearly 2300 points from the Dow.

Investors were skittish after New York officials said they were monitoring 83 people for possible coronavirus infection after visiting China.

And the State Department issued a travel advisory for Italy, in which it urged U.S. citizens to "exercise increased caution" due to coronavirus.

Worried investors once again sought safety in U.S. government bonds, which sent the yield on the benchmark 10-year note to a record low for the second straight session.

By the end of the session, the Dow was down 123 points, the S&P lost 11 but the Nasdaq ralled 15 points.

Ryan Payne from Payne Capital Managment thinks there could be more selling to come.

SOUNDBITE (ENGLISH) RYAN PAYNE, PRESIDENT, PAYNE CAPITAL MANAGEMENT, SAYING: "I'm still hearing maybe more anectodally, people saying like 'hey, I wouln't mind getting in here and taking advantage of the dip.'

That's not usually indicative of a bottom.

You need people saying: 'uh, I just can't put my money in the market here.'

That's usally a better sign.

Now that's a little more anecdotal.

It's a little less science to that - more art.

So I think just based on that complacency you could see some more selling here." Coronavirus worries, aside, there were some market positives... New home sales skyrocketed to a 12-1/2 year high in January and December's rate was upwardly revised in a sign the housing market could help keep the longest U.S economic expansion in history on track.

Cheaper mortgage rates are lending a big support to homebuyers.

And on the corporate front: TJX, the parent of TJMaxx and Home Goods, announced a 10 percent jump in holiday-quarter sales as store improvements and higher marketing drove in more customers.

Profits topped expectations as well, sending the stock to an all-time high.

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