Dow Jones was under selling pressure for the fifth straight day as China announced a sharp increase in the confirmed coronavirus cases. The Dow Jones and the other U.S major indices started the session yesterday with a gap down and now they have turned negative for 2020. News that the virus is spreading to other countries also weigh on investors sentiment. The question now is what is the damage by the coronavirus outbreak in the global economy. At the close of the trading day, the Dow Jones Industrial Average was down 1.57% at 28535. The S&P 500 Index was 1.57% lower at 3243, and the NASDAQ was 1.89% lower at 9139.
The travel and tourism stocks suffered steep losses while utilities displayed some strength as traders are looking for safe-haven assets.
On the data front, the new home sales dropped to 694,000 units in December. The figure was below the expectations. Later today, we will get the durable goods orders for December, and the consumer confidence data.
The futures in Wall Street as of writing trading higher the Dow Jones is 54 points higher. The S&P is 6.90 points higher while the Nasdaq also adds 40 points at 8994.
Dow Jones hit yesterday the 2020 lows but managed to rebound some of the losses before the close. Now the index is approaching the critical 50-day moving average at 27661. If the Dow Jones Industrial Average breaks below, then the bullish momentum would be cancelled. Sellers will target the low from December 13th at 28025.
On the upside, first resistance for the Dow Jones index stands at 28,668 the daily high from the trading session yesterday. More offers would emerge at 29298 the high from January 24th. The all-time high at 29373 is the next strong supply zone.