The Dow Jones closed down by more than 600 points on Friday after a difficult week on Wall Street. Despite knockout earnings reports from major companies including Amazon (AMZN), Tesla (TSLA), Apple (AAPL) and Microsoft (MSFT), the Dow Jones Industrial Average and S&P 500 both fell below their 10-week moving averages — a bearish sign.
XThe market sell-off came after China's National Health Commission reported 9,692 confirmed coronavirus cases and 213 deaths. Additionally, on Thursday, the World Health Organization declared coronavirus "a public health emergency of international concern." American Airlines (AAL), Delta (DAL) and United Airlines (UAL) announced they're suspending service to mainland China.
The Dow led the downside in the stock market today with intraday losses over 2%, its worst single-day drop since August. The S&P 500 fell 1.8% on Friday, while the Nasdaq Composite dropped 1.6%. The Dow Jones closed down 603 points, or 2.1% lower. The Innovator IBD 50 ETF (FFTY) dropped 1.8%. Volume traded higher on both exchanges vs. Thursday, according to early data.
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Dow Jones Movers: Exxon Mobil, Chevron, IBM
Weaker-than-expected reports from Chevron (CVX) and Exxon Mobil (XOM) also weighed on the Dow Jones industrials on Friday. Exxon stock fell to a 10-year low after missing both earnings and revenue expectations. The oil giant's earnings plummeted 71% to 44 cents per share with revenue falling 3.9% to $69.10 billion. The stock is below both its 50-day and 200-day moving averages.
Meanwhile, Chevron beat earnings estimates with an EPS of $1.49. However, the company missed its revenue expectations reporting only $36.35 billion for the fourth quarter.
On the upside, IBM (IBM) remained positive as the stock rallied nearly 5% on news Arvind Krishna will replace Ginni Rometty as CEO in April. The stock is nearing a 147.45 buy point off a flat base, MarketSmith chart analysis shows.
Stocks Market Today: Winners And Losers
Federated Investors (FII) broke out of a consolidation Friday. The company provides investment advisory services to mutual funds and other sponsored investment products. The stock rose over 4%, breaking out above a 36.08 buy point. Federated Investors stock closed within its 5% buy zone.
Among the biggest losers in the stock market today, China stock Luckin Coffee (LK) tumbled nearly 11%. Shares of Luckin Coffee sold off worse than the rest of the market, on news that the closely watched short-selling research firm Muddy Waters revealed a short-sale position.
Amazon Stock
Amazon stock soared 7% after reporting strong earnings, with a significant earnings beat and huge sales beat. Shares of Amazon gapped up but faded midday. The stock broke out of a base with a 1,917.92 buy point. Amazon stock was by far the best gainer in the Nasdaq 100 on Friday.
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