“Coronavirus Outbreak – Beyond Meat, Novavax, Isoray, Tesla & Uber Surge” – Vista Partners Daily Market Recap For January 21, 2020

The markets had to swallow a negative pill today as news of the coronavirus outbreak spread across the world wide web to add a dose of fear & uncertainty which resulted in a sell-off. According to several sources now including the CDC the pneumonia-like illness or coronavirus from China has killed at least six people and made hundreds of others sick in Asia and has now been confirmed in a patient in Washington state somewhere near Seattle. Heightened fears also grew as it was announced that passengers would be screened at Hartsfield-Jackson Atlanta International Airport and Chicago’s O’Hare International Airport in addition to the screening that is going on with passengers coming in from the central Chinese city of Wuhan in San Francisco, Los Angeles & New York. The coronavirus outbreak has spread from Wuhan to cities including Beijing and Shanghai and even in South Korea, Thailand & Japan.

The S&P 500 ended at 3,320.79, -.27%. The S&P 500 sectors of energy off -1.9% &  materials off -1.1% led the down day.  The FAANG stocks’ finished with mixed results. Facebook (FB) closed at $221.44/share, -.32%, Amazon (AMZN) closed at $1892.00/share, +1.46%, Apple (AAPL) closed at $316.57/share, -.68%, Netflix (NFLX) closed at $338.11/share, -.46%, & Alphabet (GOOG) closed at $1484.40/share, +.27%.

The Nasdaq Composite ended at 9,370.81, -.19%.

The Dow Jones Industrial Average ended at 29,196.04, -.52%.

The Russell 2000 also dropped by +1.13% ending at 1,685.90.

The “fear gauge” Vix (TVIX) ended at $40.04/share, 1.73% and traded in a range of $38.26- $40.46.

Economic Reports

On Monday we did not receive any economic data as we observed the MLk Day holiday.

On Tuesday we did not receive any economic data.

Investing & Inspiration

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

Tomorrow

We are due to receive the Existing Home Sales for December, the FHFA Housing Price index for January, & the weekly MBA Mortgage Applications Index Report tomorrow.