The stock market closed lower Tuesday after an afternoon rebound faded as worries of a global virus spread.
XThe Nasdaq composite lost 0.2% and the S&P 500 0.3% in Tuesday's trading. Volume rose on the Nasdaq and fell on the NYSE from Friday's totals, according to early data.
Defensive sectors led. Real estate, utilities, consumer staples and health care were the day's top performers. SPDR Real Estate ETF (XLRE) rose 1% and is close to a 40.44 buy point in a flat base.
Reports that health officials confirmed the first case of the coronavirus in the U.S. sent the stock market off session highs in early afternoon. Stocks pared much of the loss but faded again in late trading. A jump in oil prices following Libya's supply disruptions faded as the virus became the larger worry for investors. U.S. oil fell 0.3% to $58.34 a barrel. The energy sector was one of the day's poorest.
Transportation stocks, especially airlines, were lower. Companies with casinos in China's Macao region such as Wynn Resorts (WYNN) and Melco Resorts (MLCO) also fell. Chinese stocks in general were weaker. IShares China Large-Cap ETF (FXI) slid 4.7%.
Small caps struggled more, as the Russell 2000 gave back 0.8% at the close.
The Dow Jones Industrial Average gave up 0.5%. Boeing (BA) again was the biggest drag on the Dow. Boeing shares tumbled to a nearly 13-month low after the company delayed the 737 Max return to service to the middle of this year. Trading was halted on Boeing for about a half-hour.
It wasn't all defensive investments that prevailed Tuesday. Some leading growth industry groups also led. IBD's semiconductor equipment and enterprise software groups rose more than 0.5% each.
Innovator IBD 50 ETF (FFTY) rose a fraction after erasing earlier losses.
On the IBD 50, new issue XP (XP) broke out of an IPO base, but shares of the Brazil-based brokerage closed right at the 40.60 buy point. Volume initially was strong but ended well below average. XP is on IBD Leaderboard.
D.R. Horton (DHI) climbed above the 56.22 buy point of a flat base. Volume was 40% less than the normal pace, and the relative strength line did not make a new high.
Costco (COST), which is not on the IBD 50, broke out of a flat base, rising past the 307.20 buy point in active trading.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
YOU MIGHT ALSO LIKE:
After Hours: These 3 Tech Giants Are Moving Higher
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
In A Flat Base, Dull Trade Can Be Positive Action
