Real Estate Stocks Hit High; China Virus Affects Wall Street

Real Estate Stocks Hit High; China Virus Affects Wall Street

The Chinese virus outbreak caused most of the futures to drop significantly. But the real estate stocks seem to survive the crash wave. The Costco Wholesale Corp advanced 2.8% after the Oppenheimer upgraded the shares. Additionally, when three brokers rose their price targets for the chipmaker’s shares, Intel Corp also added 1.6%.

The Nasdaq Composite endured 140 new highs and 37 new lows during the last weeks. While the S&P 500 had 89 new 52-week highs and two new lows forty-six of its companies announced an increase. With 71.7% exceeding the analyst’s expectations. So far, the fourth-quarter earnings season seems mainly successful.

U.S. Stocks Fell Along with Asian Futures

As the virus outbreak preceded the Lunar new year in China, travel-related stocks sustained the most loss. United Airlines dropped by 4.4%. The NYSE Arca Airline index also fell to 2.8%, while Carnival Corp lowered with 2.3%.

The United States Steel Corp decreased by 5.2% due to its big exposure to China. Las Vegas Sands Corp and Wynn Resorts Ltd, Casino and hotel operators, lost 5.4% and 6.1% during this session. Both of them lead a lot of operations in China.

The Dow Jones Industrial Average dropped 152.06 points, or 0.52%, to 29,196.04, while the Nasdaq Composite fell to 18.14 points, or 0.19%, to 9,370.81 and the S&P 500 lost 8.82 points, or 0.26%, to 3,320.8.

China virus has already reached America, as well as several other countries. American futures indexes reduced after the Centers for Disease Control and Prevention confirmed the first U.S. case of the coronavirus. Three leading U.S. stocks fell from their record highs during the last days, ending their best one-week growth period in months.

Meanwhile, the International Monetary Fund lowered its global economic growth forecast. Charlie Ripley, the senior market strategist for Allianz Investment Management in Minneapolis, noted that risks never diminish. He thinks the coronavirus outbreak will cause the investors to pay better attention in the coming months.