The Week That Brought the Dow to Its Knees
We took a closer look at what SPY level you should watch before March expiration
Triggering yet another whirlwind week on Wall Street, coronavirus fears continue to rise, as a rapid increase in cases both worldwide and within the U.S. shake investors. Markets began the week with catastrophic losses, including that of oil, which experienced its worst single-session drop since 1991. The broad market rallied Tuesday, but by Wednesday suffered a selloff that sent indexes into bear-market territory following the World Health Organization's (WHO) declaration that COVID-19 was a "pandemic." Thursday marked the Dow Jones Industrial Average's (DJI) worst daily drop since 1987, though some of these losses were pared on Friday, as stocks moved into recovery mode.
Medical Stocks Making Moves
It won't come as a shock to know that drug stocks made headlines once again this week. Eli Lilly (LLY) was given high praise out of Goldman Sachs on Wednesday, added to the firm's "Conviction Buy" list despite coronavirus concerns. Meanwhile, the Food and Drug Administration (FDA) had Soliton (SOLY) stock soaring after the medical device company received 510(k) Premarket Notification clearance for its Generation II tattoo removal device.
2 Stocks Blasted by C-Suite Buzz
With rapid headwinds taking out travel stocks left and right, it was no surprise when Southwest Airlines' (LUV) CEO Garry Kelly announced Tuesday he would be taking a 10% pay cut to combat company losses. Meanwhile, tech retailer Best Buy (BBY) suffered a steep pullback after announcing Executive Chairman Hubert Joly's resignation.
Also making headlines this past week was PepsiCo (PEP). Specifically, the Coca-Cola (KO) rival sank lower after revealing its plans to buyout Rockstar Energy for $3.85 billion.
All Eyes on Fed
Amid the current volatility climate on Wall Street, we took a closer look at how stocks tend to behave during a market bounce, as well as the SPY level to watch before March's options expiration. Looking ahead to next week, the Fed will hold its two-day meeting beginning on Tuesday, and culminate in remarks from Fed Chair Jerome Powell Wednesday afternoon. Also slated to debut will be, retail and jobs data, as well as a handful of notable earnings reports.