A man in a surgical mask walks by the New York Stock Exchange (NYSE) after more cases of coronavirus were confirmed in New York City, New York, U.S., March 10, 2020.
Andrew Kelly | Reuters
Dow Jones Industrial Average falls 328 points
The Dow slid 328.60 points, or 1.39%, to 23,390.77. The S&P 500 dropped 1.01% to 2,761.63. The Nasdaq Composite dipped 0.48% to close at 8,192.42. Stocks had their first decline in three sessions ahead investors braced for the start of the corporate earnings season.
Stocks fall after big week of gains
Monday’s drop came after the market posted historic gains in the prior week. The Dow was coming off its seventh-largest weekly gain while the S&P 500 notched its biggest one-week gain since 1974. However, investors turned their attention to the start of the corporate earnings season, with JPMorgan Chase, Johnson & Johnson and Wells Fargo among the companies set to report. Several companies have removed their earnings guidance, citing the coronavirus outbreak, while others have slashed their profit forecasts.
Caterpillar drags Dow lower
Caterpillar shared dropped 8.71%, leading the Dow lower, after the construction giant was downgraded by an analyst at Bank of America. The analyst lowered his Caterpillar rating to underperform from neutral, noting: “Energy and mining stocks are signaling another severe capital spending downturn in two of CAT’s most important end markets.”
What happens next?
Import prices data are set for release on Tuesday.
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Stocks had their first decline in three sessions as investors braced for the start of the corporate earnings season.