The market opened lower by almost 1% because of the Coronavirus. Like the Chinese trade war, the Chinese disease is vacillating between not being “that bad” and the end of civilization a couple times every day.
At the lows, the SPX was down -30.60 but it did try to get back to the unchanged line a couple of times, though it failed. At about 1:45pm (Chicago time), news came out from the World Health Organization (WHO) that it is labeling the disease as a “global pandemic”.
One would think that scary words from the WHO would be a negative thing? Personally, I have about 50 people who look at me funny as a result of rumors from less credible sources than the World Health Organization.
I always incorrectly assumed that Laurence Peter was right when he said “Make three correct guesses consecutively and you will establish a reputation as an expert”. One would assume that when the WHO says “Global pandemic,” it would have the same effect as yelling “FIRE” in a crowded theater. Instead of falling, the market ran higher.
From a net change of -15, the SPX ran to the unchanged line, where it sat until the last 30 minutes of trading. On the close, the SPX ran yet another +10 points higher.
AMD had been as low at 46.13, but closed at 48.78 (+1.27)
AAPL had been as low as 318.75 but close at 323.87 (-0.47)
VIX had been as high as 18.39, closed at 14.60 (-0.25)