Markets

Stock market live updates: Dow drops, Coronavirus fears take over, Boeing reversal

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters

This is a live blog. Check back for updates.

4:00 pm: Stocks end the day and week lower

Traders did not want to go long into the weekend with the risk more coronavirus cases are confirmed. The S&P 500 ended 0.9% lower for Friday and 1% lower for the week. The Dow dropped 170 points on the day. Banks were among the hardest hit stocks with JPMorgan off by 2.6%. Boeing was a bright spot, ending the day up 1.6%. —Melloy

3:27 pm: Oil posts worst week since July

U.S. West Texas Intermediate crude futures fell 2.5%, or $1.40, to settle at $54.19. For the week, WTI posted a loss of more than 7%. International benchmark Brent crude also came under pressure Friday, declining 2.2% and ending the week with a loss of 6.5%. The coronavirus outbreak was the key factor sending prices lower. China is the world's largest oil importer, and the second largest oil consumer, so any slowdown in the economy – including a halt in air travel – could lead to softening demand and a potential oversupply in the market. — Stevens

3 pm: Final hour of trading: Stocks set to end the week with a big drop

With roughly one hour left in Friday's session, stocks are set to post steep losses to end the week. Barring a spectacular reversal to end the day, the major averages will post their first weekly declines of 2020. Traders seem to be dumping stocks in favor of safe havens such as Treasurys and gold. The Dow was down about 160 points was briefly down as much as 316.78 points, or 1.1%. A sharp jump in Boeing shares, however, helped the averages pare some of their losses (see below). —Imbert

2:58 pm: Boeing stages big turnaround as FAA is 'pleased' with 737 Max progress

Boeing reversed earlier losses and rose to a 1.8% gain for the day after FAA Administrator Steve Dickson said the regulator was "pleased" with Boeing's progress in recent weeks regarding the grounded 737 Max. A source told CNBC the regulator is telling airlines the grounding could be lifted before mid-year if no new issues are reported. Boeing said earlier this week that it did not expect the Max to return to service before the middle of the year, and United Airlines said on Wednesday that it did not expect to have the plane available during the summer. —Pound

2:41 pm: 10-year Treasury yield at pivotal point, close will be key

The 10-year Treasury yield slumped to 1.6806% amid fears the coronavirus could hit the global economy. The drop in rates has been defying pundits who thought the direction would be up. The 10-year yield fell through this year's low of 1.703%, reached on an intraday basis when Iran attacked U.S. assets in Iraq, and it is now at a Nov. 1 low. If it closes below 1.70%, that would be a trigger for momentum buying that could drive rates even lower. Next in play on the downside would be 1.66%, an intraday low from early November. Some see the next chart point after that at 1.62%, after which yields could then head to the 1.50% level, barring a bearish reversal.Traders look forward to next week's Fed meeting, as that could be pivotal in determining whether yields continue to decline. —Domm

2:01 pm: Airline and hotel stocks tank as coronavirus fears deepen

Shares of United Airlines and American Airlines plunged 4.7% and 5.2%, respectively, leading the market lower after the confirmation of a second U.S. coronavirus case. Shares of Wynn Resorts and Las Vegas Sands also both dropped more than 3%. — Li

1:45 pm: Stocks hit session lows, Dow now down 200 points

The Dow is currently trading around its lows of the day, down more than 200 points, or 0.7%. Coronavirus worries along with a Boeing stock drop of more than 1% are pushing the 30-stock average closer to its first weekly decline of 2020. The S&P 500 and Nasdaq Composite also traded at their session lows. —Imbert

1:35 pm: Coronavirus could stifle Chinese supply chains, expert says

The deadly coronavirus is likely having serious impacts to supply chains in China, according to Michael Osterholm, a public health and biosecurity expert. Osterholm, the director of the Center for Infectious Disease Research and Policy at the University of Minnesota, pointed to the public transit closures in Wuhan, China, which he said are impacting "many many millions of people." "So factories, even if they wanted to run, are having a difficult time" finding ways for workers to arrive, he told CNBC's "The Exchange" on Friday. "I can absolutely say, with certainty, that it's going to have an impact on supplies of very critical products around the world within days to weeks," he said. —Stankiewicz

1:16 pm: 'Dr. Copper' heads for first 7-day slide since October 2018

Concerns about the global economy may be on the rise, if copper prices are any indication. The industrial metal fell to its lowest level since early December. It was also headed for its first seven-day losing streak since Oct. 31, 2018. Copper, often referred to by traders as "Dr. Copper," is a widely used indicator for the state of the global economy given how widely used the metal is. Sentiment across markets dampened Friday amid worries over the spread of the deadly coronavirus. Copper was also down nearly 6%, its biggest one-week drop since late November 2014. —Imbert, Francolla

12:52 pm: Discover heads for worst day in nearly a decade

Shares of Discover are down about 9% after a slew of Wall Street analysts downgraded or trimmed their price targets on the stock on the back of mixed quarterly results. Analysts at Evercore ISI and Piper Sandler downgraded Discover to underperform and neutral, respectively. Morgan Stanley cut its price target to $94 per share from $101 per share. Some analysts cited concerns around Discover's margins. The stock was on pace for its worst day since August 2011. —Imbert, Francolla

12:29 pm: Coronavirus fears jolt the market's fear gauge

The Cboe Volatility Index, a measure of the 30-day implied volatility of the S&P 500 known as the "VIX" or the "fear gauge," touched a high of 15.66 amid heightened coronavirus fears. This is the first time the VIX topped the 15 level since Dec. 10. —Li

12:11 pm: Boeing dragging down the Dow

Boeing's stock turned negative on the day as CNBC confirmed the aerospace giant is considering an another cut to the production of its 787 Dreamliner aircraft. With its 737 Max line grounded, slowing production of the 787 shows Boeing's its commercial airplanes division crisis continues to widen. Boeing was down about 1%. —Sheetz

11:50 am: 200-point swing in the Dow

The Dow Jones Industrial Average dropped as much as 100 points to session lows after Bloomberg News reported U.S. Senator John Barrasso said the Centers for Disease Control for DC told lawmakers they are about to confirm a third case of the Wuhan virus in the U.S. The CDC confirmed the second U.S. case of the Chinese coronavirus in a Chicago resident earlier on Friday. The 30-stock average was up more than 100 points earlier in the day. — Fitzgerald

11:25 am: China ETF posts worst week since August on coronavirus fears

MSCI China ETF (MCHI) is down 5% this week, on pace for its first negative week since November and its worst week since Aug 2, when it lost 6.54% . China large-cap ETF (FXI) is down 5.7% this week, on pace for its first negative week since November and its worst week since May 10. Top holdings in the MSCI China ETF include Alibaba, Tencent and Ping An Insurance. — Francolla

10:44 am: Flight to gold amid coronavirus fears

Gold prices climbed on Friday as fears around the Chinese coronavirus spurred safe-haven demand. Spot gold was 0.64% higher at $1,572.84 per ounce and U.S. gold futures jumped 0.4% to $1572.4 per ounce. The Center for Disease Control and Prevention announced a second case of the deadly coronavirus in the U.S. on Friday and said 63 patients in 22 states are under investigation for the infection. The spread of the virus ahead of the Lunar New Year, a peak period of travel in China, kept investor concerns heightened. — Fitzgerald

10:40 am: 10-year Treasury yield sinks below key 1.7% level

The bond market breached a key milestone with the benchmark 10-year Treasury yield dipping below 1.7% for the first time in nearly four months. Yields hit their session lows after U.S. health officials announced a second confirmed case of the coronavirus in the U.S. Rates were also lower on a weak reading on the manufacturing sector. The IHS Markit's Purchasing Managers Index for January came in at 51.7, lower than the 52.5 expected. The last time the benchmark yield fell below the threshold was on October 31. — Li

10:37 am: Cowen says keep an eye on Starbucks and Yum China over the coronavirus, not McDonald's

McDonald's closed five of its locations in China until further notice on Friday amid the coronavirus outbreak. Though Cowen analyst Andrew Charles said on CNBC's "Squawk on the Street" it may not be much of a concern for the business, as less than 2% of the fast-food chain's operating profits are derived from China. Instead he said investors should keep an eye on Yum and Starbucks as the outbreak continues, since they derive a larger portion of their profits from China. Shares of Starbucks and Yum China were lower in morning trading on Wall Street. McDonald's stock was little changed.— Bursztynsky

10:17 am: Blame coronavirus for stocks turning negative

Airlines and hotel stocks are leading the market lower after the confirmation of a second U.S. Coronavirus case. Shares of Wynn Resorts and Las Vegas Sands both dropped 2%. United Airlines stock tumbled 3%, hitting its session lows, after Centers for Disease Control and Prevention announced a second case of the deadly coronavirus in Chicago. CDC also said 63 patients in 22 states are under investigation for coronavirus infection. — Li

10:09 am: S&P 500 turns negative

The S&P 500 is now negative. Not a surprise as the internals have been weak all morning. Decliners are now outnumbering advancers on the NYSE 1,358 to 1,225. JPMorgan is now down 1%, leading many of the banks lower. Drug stocks like Amgen are also emerging as big decliners now. The S&P 500 is also now negative for the week too, down 0.1% —Melloy

10:01 am: Utilities stocks are the most 'overbought' ever

While the seemingly unstoppable rally has put many growth stocks in overbought condition, it's surprising that stable utility names have also perhaps gone too high, too fast. The exchange-traded fund tracking the utility sector — Utilities Select Sector SPDR Fund (XLU) — posted a 10-day winning streak, up 6.7% in that period. The relative strength index for the ETF jumped to a whopping 84.5, the highest level since the fund's inception in 1999. Any number above 70 is seen as a sign stocks are becoming overbought. Utilities are "one area of the market that rarely (never?) seems to go parabolic…IS suddenly acting that way," said Matt Maley, chief market strategist at Miller Tabak. — Li

9:41 am: Intel, Netflix among early winners, but internals weak

Glancing at the market board, Intel is leading the tech sector higher. Apple and Boeing are also among the notable gainers. There are some big pockets of weakness, however. Bank stocks are down again, continuing their rough week as yields fall. Consumer-related stocks are getting hit and energy shares are down as well. The internals don't appear very strong. Decliners actually outnumber advancers on the NYSE, 1,254 to 1,242. —Melloy

9:32 am: Dow jumps more than 100 points at the open

Thanks to American Express for the Dow's strong open. The 30-stock index gained about 120 points, boosted by a near 4% jump in American Express shares on the back of solid quarterly results. The Nasdaq Composite also hit a new record at the open. — Li

9:13 am: Coronavirus-related names stable

As fears of the deadly coronavirus eased after the WHO opted not to declare a public health emergency, many airlines and hotel stocks, which took a hit in previous sessions, were flat in pre-market trading. Shares of Wynn Resorts and Las Vegas Sands were both down just 0.2%, while United Airlines stock was up 0.2%. Gilead Sciences was little changed after the stock jumped 0.8% Thursday after it announced it was assessing whether its experimental Ebola treatment could be used to treat coronavirus infection. Biotech company Inovio Pharmaceuticals continued to surge, up 13% in premarket, after it said it's in the process of developing a vaccine against the new deadly virus. Inovio jumped 11.6% Thursday — Li

9:10 am: Broadcom rises after announcing Apple deal

Shares of Broadcom are up 3.4% in premarket trading after announcing a pair of agreements with Apple that the chipmaker estimated would be worth $15 billion. The deals apply to wireless components that will be used in Apple products launched over the next three and a half years, according to a securities filing. Apple comprised 20% of Broadcom's net revenue in 2019. — Pound

9:00 am: How Apple's rally could be fueled even further

With Apple's stock up nearly 110% in the past year and earnings expected next week, Bernstein analyst Toni Sacconaghi dove into a historical analysis of past times the stock has outperformed after earnings results. Sacconaghi found that Apple could indeed rally even more if the tech giant revises its revenue forecast upward: "AAPL outperforms 65% - 80% of the time when revenue revisions are positive – which we think is likely." — Sheetz

8:53 am: Yield curve tightening is back

The yield curve has been off the market's radar since the inversion ended in early October, but the spread has quietly narrowed in recent days. Peter Boockvar, chief investment officer at Bleakley Advisory Group, points out the 18 basis-point difference between the 3-month and 10-year yields is the narrowest since Dec. 3. An inverted curve, such as what prevailed from May 24 to Oct. 11, has been a reliable recession indicator over time.—Cox

8:46 am: Intel jumps on earnings, boosting chipmakers

Semiconductor stock Intel is up about 5% in premarket trading on quarterly results that beat analyst expectations. The company reported revenue above $20 billion for the first time, pushing Intel's stock to its highest level since the dot-com bubble in 2000. Chip stocks Nvidia rose 1.3%, AMD gained 1% and Micron advanced 1.5%. —Fitzgerald

8:40 am: Oil on pace for weekly decline of more than 5%

Oil is in the red again today, on pace for its fourth straight negative session. For the shortened week U.S. West Texas Intermediate crude is down roughly 5.7%, which would be the third consecutive week of declines. The coronavirus outbreak, and a potential slowdown in air travel and therefore jet fuel demand, has weighed on prices. 26 people have now died from the virus, according to China's National Health Commission. 830 cases have been reported in China, with the virus also spreading to South Korea, Japan, Thailand, Vietnam and the United States, among other places. Most estimates for the potential economic consequences have used the SARS outbreak as a reference case. Some are now saying these estimates might be extreme. Citi's Eric Lee said in a note to clients that when it comes to oil, at least, the virus hit looks "short-lived," and the sell-off looks "overdone, even for a market that increasingly shrugs off geopolitical risk." —Stevens

8:36 am: American Express climbs after earnings beat

Shares of American Express are up more than 2% in premarket trading after the payments company beat estimates on the top and bottom lines for the fourth quarter. The company reported $2.03 in adjusted earnings per share and $11.365 billion in revenue, while analysts expected $2.01 in earnings per share and $11.36 billion in revenue, according to Refinitiv. The better-than-expected was driven in part by higher-than-expected revenues from card fees. — Pound

8:32 am: Stocks set to rise to end the week, led by AmEx and Intel

U.S. stock futures are trading higher to end a choppy week of trading. Dow Jones Industrial Average futures are up about 85 points, indicating a gain of around 95 points at the open. American Express rose more than 2% to lead the gains on the back of better-than-expected earnings. Intel shares also got a boost from strong earnings. But the Dow was still on pace to post its first weekly loss of the year as worries over the deadly coronavirus subdued market sentiment. Those fears started to ease Thursday after the World Health Organization stopped short of declaring the virus spread a worldwide health emergency. —Imbert

With reporting from Maggie Fitzgerald, Jeff Cox, Michael Sheetz, Yun Li, Jessica Bursztynsky, Gina Francolla, Kevin Stankiewicz, Patti Domm.