Wall Street close: Benchmarks ending 4% lower into month end flows

• The Nasdaq Composite Index lost off 4.6% at 8,566.
• DJIA, ended down about 1,200 points, or 4.4%, at 25,763.
• S&P 500 index finished down 4.4% at 2,978.

US benchmarks were once again on the backfoot and extending price into demand territories, in a 10% correction of the tops, on a technical basis. The coronavirus continues to scare investors to the sidelines, weigh on US yields to record territories.

What bulls are hoping for, especially committed longs, is that this was a final washout as markets come to terms with the situation and carry on regardless, presuming that the spread of the virus will be contained, and the numbers of cases will continue to diminish in China as a prelude for the rest of the world. 

Meanwhile, the Dow Jones Industrial Average, DJIA, ended down about 1,200 points, or 4.4%, at 25,763, while the S&P 500 index finished down 4.4% at 2,978, popping the psychological level at 3,000. The Nasdaq Composite Index lost off 4.6% at 8,566.

US data were mixed

Despite the 0.2% MoM fall in January Durable Goods, the core measure – a proxy for business fixed investment – rose 1.1% MoM, as analysts at ANZ Bank pointed out:

"However, the 3-month average is still only 0.2% MoM, and investment can be characterised as weak. Meanwhile, the Atlanta Fed GDPNow estimate rose to 2.7% vs 2.6%, and the second revision to Q4 GDP was as expected at 2.1%. The deflator came in a touch weaker at 1.2% saar vs 1.3%. Personal consumption rose 1.7% vs 1.8% as spending on durable goods rose 2.6% but on nondurables, it fell 0.3%. Investment fell 6.0% saar in the quarter with spending on equipment down 4.4%."

DJIA levels

More to come...