Wall Street falls on coronavirus fears

New York: Wall Street’s three main stock indexes closed lower amid investors’ concerns over a new coronavirus outbreak in the US.

The Dow Jones Industrial Average decreased 152.06 points, or 0.52 percent, to 29,196.04 on Tuesday. The S&P 500 fell 8.83 points, or 0.27 percent, to 3,320.79. The Nasdaq Composite Index was down 18.14 points, or 0.19 percent, to 9,370.81, Xinhua reported.

Hotel and airline stocks declined amid concerns over a novel coronavirus. Wynn Resorts and Las Vegas Sands declined 6.14 percent and 5.4 percent, respectively. United Airlines decreased 4.36 percent while Delta Air Lines dropped 2.72 percent.

On the economic front, the International Monetary Fund (IMF) cut global growth projections on Monday, citing negative surprises in a few emerging markets, notably in India, and increased social unrest, but added that “global growth may be bottoming out”.

The global economic growth forecast was downgraded from 3.4 percent to 3.3 percent for 2020. The US economy is projected to grow by 2.0 percent this year.

On the earnings front, fourth-quarter earnings in 2019 are expected to decrease by 0.8 percent from the same period in 2018. Excluding the energy sector, the earnings growth estimate is 1.9 percent, according to the latest update by Refinitiv released last Friday.

The fourth-quarter revenue is expected to increase by 4.4 percent from the same period in 2018. Excluding the energy sector, the growth estimate is 5.6 percent, said Refinitiv.

 

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