Word out of China that the coronavirus created a “grave” situation, coupled with reports it’s getting stronger, have sparked major selling in the market this morning. Although the death toll has risen, the numbers pall in comparison to the SARS outbreak. But the difference that has everyone concerned is the absence of symptoms.
The unknown factor is also weighing on the market this morning. This as 145 S&P 500 components are set to report, including most of the momentum names that have led this rally.
This morning has seen upgrades and higher targets on some of the biggest winners scheduled to report this week:
- Facebook (FB)
$250 from $240 at Stifel
- Amazon (AMZN)
$2,300 from $2,100 at The Benchmark Company
- Advanced Micro (AMD)
$65 from $50 Rosenblatt
$50 from $45 at Susquehanna
Then there’s Boeing (BA), which is under pressure from conflicting reports of a possible commercial airline crash in Afghanistan.
We have to keep our powder dry and not panic. It’s fine to take profits if underlying fundamentals seem to have peaked. Keep in mind, some of the early 2020 rally was driven by a desire not to miss out, and now, that psychology and those buyers might be spooked out.