Stock market live updates: Dow down 450, biggest coronavirus losers, oil bear market

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The Dow Jones Industrial average posted its worst drop since October, down 1.6% or 453 points. The average is now negative for the year by 0.01%. Intel, Caterpillar, American Express, Disney all dropped more than 3% to lead the Dow lower on fears the coronavirus would hit global growth. The Nasdaq Composite dropped 1.9% for its worst slide since August. The S&P 500 lost 1.57%, its biggest decline since October.

JPMorgan's tech analysts said Apple, Qualcomm and glass maker Corning are "the most notable losers" from the deadly coronavirus. Apple's sales will likely to suffer during an important holiday period in China, and the tech giant has "significant reliance" on Chinese manufacturing, JPMorgan said. Meanwhile, chipmaker Qualcomm has a high exposure to Chinese smartphone market, which will see dampened demand due to the virus, the bank said. There will also be a potential impact on end-market demand for Corning, primarily in relation to lower retail TV demand, the bank predicted. To be sure, JPMorgan said any negative impact from the coronavirus would likely be just temporary. Shares of those three companies are all down more than 2% Monday. —Li

Utilities have taken the top spot from technology among year-to-date performance for the 11 sectors of the S&P 500. Six out of 11 sectors are still positive for 2020, led by utilities up 5.6% and on pace for its best month since June 2016. The information technology sector is up 3.8% for the year, following coronavirus related losses in Apple. —Francolla

Oil posted its fifth straight day of losses on Monday as a potential slowdown in demand due to the coronavirus outbreak continued to weigh on prices. U.S. West Texas Intermediate crude fell 1.9% to settle at $53.14 per barrel, its lowest settle since Oct. 15. WTI is now slightly more than 20% below its recent high of $66.60 per barrel in April, meaning that it's now in bear market territory. International benchmark Brent crude also posted its fifth straight day of losses, settling below the $60 mark. — Stevens

Apple reports quarterly earnings after the bell on Tuesday. Goldman Sachs said it is looking for commentary on Apple TV+ and iPhone demand in China. 3M, a good gauge of the manufacturing economy, also reports earnings, along with semiconductor company AMD, which has rallied an impressive 50% in the past three months. Coffee chain Starbucks reports earnings and investors will be looking for updates on how the deadly coronavirus is impacting business. Starbucks said it is temporarily closing some of its stores in China due to the virus. We'll also get a read on how consumers are feeling about the health of the U.S. economy when January's consumer confidence index is released. Economists polled by Dow Jones are expecting a read of 128.0, up from December's read of 126.5. –Fitzgerald

With roughly one hour left in the trading session, Wall Street was headed for its worst one-day performance since October, with the S&P 500 on pace to snap a 74-day streak without a 1% decline. The Dow is down around 400 points and appears to be trending back towards the lows of the day as the final hour nears. Coronavirus fears gripped Wall Street, knocking stocks off the record levels set earlier this month. —Imbert

Exchange-trade funds that track emerging markets are falling broadly as worries over the coronavirus dented sentiment over global economic growth. The iShares MSCI Emerging Market ETF (EEM) dropped 3% and was on pace for its worst daily loss since Aug. 5, when it fell 3.7%. The EWZ, which tracks Brazilian shares, slid 3.2%, its worst day since Aug. 23. ETFs that track South Korean, Chilean, Russian and Chinese stocks were also down around 3%. —Imbert

Homebuilder stocks are one of the rare bright spots today, with D.R. Horton rising 2.5% after reporting better-than-expected earnings for its fiscal first quarter and raising its full-year guidance for revenue and homes closed. PulteGroup, which reports earnings tomorrow, and Lennar are both up more than 1%. The gains come despite weaker-than-expected data for new home sales released this morning. —Pound

Stocks are off their lows with the Dow Jones Industrial Average now down about 330 points as investors flock to defensive stocks amid the coronavirus fears. Pfizer and Walmart both rose more than 1%, lifting the 30-stock benchmark. Johnson & Johnson and Procter & Gamble were also among the best Dow performers. These defensive names are typically less tied to global growth and turbulence. The Dow was down nearly 550 points at its session low. — Li

Vir Biotechnology — which has a market cap of more than $2.6 billion — surged more than 20% as investors bet the little-known biotechnology stock will benefit from the race to find treatment and prevention for the deadly coronavirus. Last week, the company said it may have the "potential to treat and prevent Wuhan coronavirus." The stock has also surged nearly 100% in 2020, easily outpacing other high-flying stocks such as Beyond Meat. —Imbert, Francolla

The Dow Jones Industrial Average fell for the fifth trading day in a row Monday, on pace for its longest losing streak in nearly five months. The last time the 30-stock index was down for five straight days was in early August when the U.S.-China trade war escalated. Since Jan. 21, the Dow has plunged about 700 points as fears around the deadly coronavirus deepened.— Li

Stocks are reeling midday trading, with the Dow trading 400 points lower as worries mount over the economic implications of the coronavirus spreading. The 30-stock average is also barely higher for the year. Around noon, the Dow was up just 0.2% year to date, meaning it could close lower for 2020 if the sell-off escalates. —Imbert

The benchmark 10-year Treasury yield could take another leg lower, due to hedging. The yield influences the rate for home mortgages. If it falls enough, it can create a stampede among homeowners to refinance. When refinancings rise, mortgages are paid off, and securities backing them are often owned by big institutions, like insurers, who need longer duration investments in their portfolios. "And in order to keep the duration levels, they go out and buy long term Treasurys. The greater yields fall, they fall even further because of this dynamic," says Peter Boockvar, chief investment strategist at Bleakley Advisory Gorup. The 10-year was at 1.61% Monday. A key resistance level is at 1.50%. As the 10-year rate drops, the yield curve is flattening with the spread between the 2-year and 10-year yield at about 16 basis points, less than half of what it was at yearend. "The pain trade is a 'bull flattener' which is what we have now. If there is some hedging, that could accelerate the move," said one strategist.

The coronavirus could have a negative impact on global economic growth if it can't be contained in the next few months, former IMF China Division Head Eswar Prasad told CNBC's "Squawk on the Street." If the flu-like virus continues to spread across China into the second quarter and beyond, Prasad said he could see it take 0.25% or 0.5% off world growth, since it'll hurt the nation's imports and exports. - Bursztynsky

New home sales took an unexpected dip in December, falling 0.4% from the prior month to a seasonally adjusted annual rate of 694,000 units, the Commerce Department reported Monday. It was the third-straight monthly drop, and sales for the last three months of 2019 were revised lower. The sales fell well short of the consensus 730,000 expected by economists. —Lewis

Stocks with exposure to China, travel continue to fall. The spreading coronavirus has led to a sell-off in stocks with heavy exposure to China and in the travel industry. Wynn Resorts is taking one of the largest hits, down nearly 7.5%, while fellow gambling and hotel stocks Las Vegas Sands and MGM Resorts are down about 7% and 4%, respectively. These companies also have big operations on China's gambling hub, Macau. Shares of airlines and cruise companies are also lower. American Airlines is down more than 5.5%, while United is down 4.8% and Delta is down 4.2%. Royal Caribbean is down 6.9%, with Carnival Cruise Lines and Norwegian Cruise Lines also suffering significant drops. Consumer companies with big business in China are also taking a hit. Nike is down 1.9%, while Estee Lauder is down roughly 5.2%. Apple, which is counting on China to provide iPhone sales growth this year, fell 3%. (See posts below for more info and movers.)

Shares of a small biotech company Inovio Pharmaceuticals skyrocketed 24%, bringing its one-week gain to a whopping 60% after it said it's in the process of developing a vaccine against the new coronavirus. Trading volumes ballooned to nearly 20 million shares Monday morning, compared to its 30-day average of just 2.6 million shares. The Pennsylvania-based company said last week it was granted $9 million by the Coalition for Epidemic Preparedness Innovations for vaccine development. A word of caution that any vaccine could be a year or years away from commercial production. — Li

The iShares MSCI Emerging Markets ETF (EEM) is down 3.9%, on pace for its worst daily performance since Brexit on June 24, 2016 when it fell 6.1%. The ETF has fallen for three days in a row and Monday marks its fourth negative session in five. The EEM is down 5.7% over the past three sessions, and down 7.2% over the past five sessions. If global growth, and China's economy in particular, is threatened by the coronavirus, emerging markets companies could be among the hardest hit. — Hayes

CNBC's Jim Cramer said Monday that Apple stock, under pressure Monday with the rest of the market, could determine the future direction on Wall Street. "I always said own it, don't trade it," Cramer said on "Squawk on the Street." He added, "Why not wait now if you don't own it?" Apple is set to report earnings after-the-bell on Tuesday. Shares of Apple, even with Monday's slide, were still up about 5.5% so far this year after soaring nearly 90% in 2019. The "Mad Money" host also said on CNBC on Monday that investors waiting for the overall market to sink so they could buy stocks at cheaper prices should stay on the sidelines a little longer. — Belvedere

The Treasury market is reacting to the outbreak of the current coronavirus more dramatically than it did to SARS. The 10-year yield has moved more than 20 basis points in the past week, and was at 1.60% Monday, off from 1.83% the Friday before the outbreak began to spook markets. "We and everyone else are comparing this to SARS … so this is a much sharper move," said Michael Schumacher, director rates at Wells Fargo. He said the first case of SARS confirmed in Hong Kong was Feb. 19, 2003 and between then and March 10, 2003, the 10-year moved to 3.56% from 3.95%. "It seems a little more aggressive this time." The move in 2003 was about 39 basis points on a much higher yield over three weeks, relative to the current 23 basis points move in the past week. Most of the move in 2003 was before the official World Health Organization issued a global alert on March 12, Schumacher said. "The big move was done by March 19. The 10-year was back to 3.98%. On March 21, it closed above 4%," he said. —Domm

While the broader market sold off on coronavirus fears, shares of Clorox ticked up more than 2% on Monday. The consumer goods manufacturer makes Clorox disinfecting wipes, which help fight diseases by killing bacteria. Clorox is a classic defensive stock, less tied to the economic cycle. Clorox also pays a healthy 2.6% dividend yield. –Fitzgerald

Market pros have been getting increasingly nervous about Vermont Sen. Bernie Sanders rise in the polls, as the Iowa caucuses approach. A chart by Cornerstone Macro analyzing the tax plans of the Democratic candidates is adding to that angst. The chart was published in The Wall Street Journal. The tax plans of all top Democratic candidates show a sharp jump to an overall marginal rate above 50%, from the current 40.2%. That includes higher contributions to Social Security by higher income tax payers and a higher individual tax rate. Sanders' proposals is by far the biggest jump, boosting the overall top marginal rate to 69.2%. His top individual tax rate would jump to 52% (from 37%). "With this virus, people have tuned out the U.S. elections, which is a relief. But they'll be back quickly," said one strategist. "If Bernie's the potential front runner, markets get a little spooked by that." Over the weekend, DoubleLine's Jeff Gundlach tweeted: "Bernie getting close to Joe on Predicit. Here comes Iowa!" —Domm

Top health insurers traded lower as new polls released over the weekend showed Sen. Bernie Sanders, I-Vt., surpassing former Vice President Joe Biden in key early states as both vie for Democrats' support in the 2020 primary. Stocks including Anthem, UnitedHealth, Cigna and Humana all traded down at least 2%. Sanders, a lifelong democratic socialist and avowed opponent of private-sector health care, has been his support among Iowa voters rise in recent days ahead of the state's critical caucus next week. His support swelled by six points since October and he's now garnering 25% of the Iowa vote, according to a New York Times/Siena College poll. —Franck

Shares of American Express fell 4.4% in after Stephens downgraded the stock to equal-weight from overweight, saying the company's "excellent performance is now the market expectation." While Stephens expects American Express to continue to perform well, the firm said it doesn't see any "material catalysts for 2020" to drive the stock higher. Piper Sandler also called out American Express' strong execution in a note but highlighted a different risk: The impact of coronavirus on American Express from a potential decrease in travel and tourism spending. Piper Sandler said so far, the coronavirus risk for American Express is small. —Sheetz

Copper dropped more than 2% to its lowest level since October as investors fretted over the economic impact of the coronavirus. The metal traded around $2.62 per pound. Earlier in the session, it hit a low of $ 2.612 per pound, its lowest since Oct. 18. Copper is widely considered a bellwether for the global economy since it is used in everything from building houses to consumer goods. Declining copper prices may signal an economic slowdown is ahead. —Imbert, Francolla

The Dow was negative for the year at its session lows shortly after the open. Breakeven for year is 28,538.44. The Dow hadn't been lower for the year on an intraday basis since January 8. The S&P 500 is still modestly higher for 2020 (breakeven 3.230.78), while the Nasdaq is still solidly higher for the year (breakeven 8,972.61). — Hum

The Dow Jones Industrial Average open was even worse than futures were signaling. The Dow dropped more than 500 points in the first minute as traders sold first and asked questions later on fears of the coronavirus hitting global business activity. Nike, which has big revenue exposure to the China consumer, was the worst performer in the Dow, losing 3%. It was the worst percentage Dow drop since October with the average off more than 1.5%. The S&P 500 lost 1.5%. Apple shares were off by 3% as well. —Melloy

Johnson & Johnson's chief scientific officer told CNBC on Monday that he believes the drugmaker can create a vaccine in the coming months to fight against the fast-spreading coronavirus. However, Dr. Paul Stoffels said it could take up to a year to bring it to market. "We have dozens of scientists working on this," he told "Squawk Box," confirming J&J started working on a coronavirus vaccine two weeks ago. Johnson & Johnson shares were off by just 0.6%, outperforming the broader market as some investors hid out in the stocks in the steady industry. —Bursztynsky

The Cboe Market Volatility Index surged above 18 on Monday morning as the broader stock market pointed toward a lower open. The index, often called Wall Street's 'fear gauge', is about 4 points above where it closed on Friday and is at its highest level since October. Volatility has been abnormally low during the latest stretch for this bull market. The index means more investors are buying put options to protect from a market slide. — Pound

Visits to the Chinese territory Macau, known for its Las Vegas-like casino and gaming businesses, are declining as the Chinese coronavirus continues to spread throughout Asia. Through the third day of the Chinese New Year holiday, Macau visits were down 60% year-over-year, according to Deutsche Bank. Wynn Resorts, Las Vegas Sands and MGM Resorts International all have revenues coming from Macau. Wynn dropped 8%, Las Vegas Sands fell 7% and MGM ticked 5% lower in premarket trading on Monday. –Fitzgerald

The heightened concerns about the deadly coronavirus continued to drive investors to safe assets like government bonds. The benchmark 10-year Treasury yield, which moves inversely with prices, touched a low of 1.603% Monday, its lowest level since Oct. 10. The yield on 2-year Treasury note also hit a low of 1.429%, its lowest level in more than three months. —Li

Oil moved lower again on Monday — pacing for the fifth straight session of losses — as fears over a potential slowdown in crude demand, sparked by the coronavirus outbreak, continued to pressure prices. U.S. West Texas Intermediate crude dropped more than 3% to $52.13, its lowest level since Oct. 10. International benchmark Brent crude also hit a more than 3-month low, after posting its worst week since Dec. 2018. "The corona virus has quickly morphed from being a curiosity to a potentially more ominous threat to the global economic and oil demand outlook for 2020," Simmons Energy analyst Bill Herbert said in a note to clients Sunday. — Stevens

Oppenheimer downgraded shares of cosmetic company Estee Lauder to perform from outperform and lowered their price target to $210 per share from $230 per share, as the death toll and infection rate of the Chinese virus continued to rise. In recent years, the Chinese consumer has represented a key driver in Estee Lauder's business, offsetting weakness in the United States, said Oppenheimer. Credit Suisse estimates the makeup company has about 17% revenue exposure in China. "Although difficult to measure the precise impact and the length at which the coronavirus-related challenges could persist within the Chinese economy, we now expect EL's higher margin travel-retail segment to be adversely impacted at least in Q3 (Mar.) and potentially longer," Oppenheimer analyst Rupesh Parikh said in a note. After falling more than 10% last week, Estée Lauder ticked lower again on Monday. –Fitzgerald

Shares of Boeing are down 1.6% in volatile trading as investors grapple with conflicting information about a passenger plane crash in Afghanistan on Monday. It was initially reported to be a plane from the state-owned Ariana Afghan Airlines. However, the airline's acting CEO Mirwais Mirzakwal has since denied that one of its planes had crashed. It's still unclear if it was a Boeing plane that went down. —Li

Bank of America downgraded shares of hotel and casino chain Wynn Resorts to neutral from buy and lowered its price target to $150 per share from $160 per share as the Chinese coronavirus continues to spread, threatening travel and tourism-related stocks (see below). The deadly virus, which has killed more than 80 people and infected over 2,800 people, is getting stronger, forcing China to restricted travel for at least 35 million people across 15 cities. "Understandably, the Macau focused gaming names have traded off more than the broader market as they are 1) highly exposed to domestic Chinese travel, 2) the timing is concurrent with Chinese New Year," Bank of America equity analyst Shaun Kelley said in a note to clients Monday. After falling more than 11% last week, Wynn shares dropped once again on Monday. –Fitzgerald

Travel and gaming stocks are leading the broader market lower as fears over the coronavirus escalate. Las Vegas Sands, Wynn Resorts and MGM Resorts, which have big China gaming operations, all dropped at least 4.5% in the premarket. Airline shares such as American, Delta and United each slid at least 3% on fears of a slowdown in global travel because of virus fears. Expedia was off by 4% and Marriott International by 3%. Estee Lauder and Nike, two consumer stocks with high China sales exposure, fell 4.1% and 2.5%, respectively. Disney and Apple both dipped more than 2%. —Imbert

U.S. stock futures are following global markets lower on Monday amid rising fears of the spreading coronavirus and its potential impact on the global economy. Around 7:50 a.m. ET, Dow Jones Industrial Average futures indicated a drop of more than 400 points at the open. S&P 500 and Nasdaq 100 futures pointed to a loss of more than 1% each. Fears spread after the death toll in China from the virus rose to 81 over the weekend, with more than 2,800 cases confirmed. —Imbert

—With reporting from Pippa Stevens, Jessica Bursztynsky, John Melloy, Robert Hum, Gina Francolla, Michael Sheetz, Tom Franck, Patti Domm, Matthew Belvedere, Christopher Hayes, Al Lewis, Jesse Pound