China virus fears slammed the stock market Monday, as the Dow Jones Industrial Average plunged more than 450 points despite closing slightly off its lows.
XThe Nasdaq dived 1.9%, while the Dow Jones industrials and S&P 500 sank 1.6% each in today's stock market action. Small caps tracked by the Russell 2000 fared much better, down 1%. Early data showed higher volume on the NYSE and lower trade on the Nasdaq vs. Friday.
Chinese officials have confirmed more than 2,800 cases, with 81 deaths. The Centers for Disease Control and Prevention on Sunday confirmed a fifth case in the U.S., and said it is monitoring 110 potential cases across 26 states. The five U.S. cases are in Washington state, Illinois, California and Arizona.
All three major indexes gapped down at the open, pared losses, then headed lower again into the close. The Dow Jones index got close to testing its 50-day moving average as it extended its losing streak to five. It tumbled as much as 540 points at its low. The Nasdaq, pressured by chips and other tech stocks, suffered the biggest loss.
On the Dow, Intel (INTC) was the biggest loser with a 4% drop. The chip giant, which notched a new high Friday, is still 11% extended from a 59.23 buy point of a cup with handle.
Intel's 98 Composite Rating, which gives investors a simple way to gauge a stock's key fundamentals and technicals, leads the 33-stock semiconductor manufacturing group.
Among other big Dow losers, Caterpillar (CAT), American Express (AXP), Apple (AAPL) and UnitedHealth Group (UNH) also lost at least 3% apiece.
But a handful of defensive blue chip names bucked the sell-off. Walmart (WMT) and Pfizer (PFE) gained roughly 1% each, while Procter & Gamble (PG) and Walgreens Boots Alliance (WBA) each added about 0.4%.
Apple Drags Dow Jones
Apple, which has strong ties to China with its iPhone business, trimmed its deficit after sinking nearly 4% at the open. Shares remain about 40% extended from a 221.47 buy point of a flat base, MarketSmith chart analysis shows. Analysts expect the IBD Leaderboard member to earn $4.53 a share on revenue of $88.35 billion when it reports fiscal Q1 results Tuesday after the close.
Energy, chip and airline stocks led the downside among IBD's 197 industry groups. The few groups bucking the sell-off included soap makers, food and discount retailers.
Chip stocks, many of which rely on China, took a beating: VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) tumbled about 4% each, though both ETFs held up above their 50-day moving averages.
In the IBD 50, InMode (INMD) sank 10% as the stock continues work on the right side of a cup base with a potential 58.86 buy point. Volume was about average. Universal Display (OLED) plunged 8% in heavy trade as it gapped down below its 50-day line. StoneCo (STNE) dropped 5% to test its 50-day line.
Other big IBD 50 losers included China e-commerce giant Alibaba (BABA), chipmaker Taiwan Semiconductor (TSM) and chip gear stock ASML Holding (ASML), down about 4% apiece.
But D.R. Horton (DHI) was a rare winner in today's IBD 50 action, rising 2% after a bullish earnings report. Share are extended from a 56.22 buy point of a flat base cleared last week.
The Innovator IBD 50 ETF (FFTY) tumbled as much as 3.5% in early trade before paring its loss to 2%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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