Stocks closed higher on Thursday after a sharp comeback late in the session erased earlier losses stemming from concerns around the coronavirus.

The major averages started paring losses with roughly one hour to go after the World Health Organization declared a global health emergency, but at the same time, did not recommend travel to China be restricted and said the country had the situation under control. 

Worries over the spreading coronavirus are weighing on investor sentiment once again, with U.S. stock futures lower and world stock markets falling this morning. The Dow and S&P 500 are on track to post their second straight weekly losses since October. The Nasdaq could fall for two straight weeks for the first time since September. The Dow and S&P 500 are also on track to lose a good chunk of their remaining January gains at the open. However, the Nasdaq has been fairing better in 2020, with an advance of nearly 3.4% in January, as of Wednesday’s close. 

Plan A : Short if market failed to support above 9166.25. Targets are 9123.25, 9095.75 and 9067.25.

Plan B : Long if market retraced but supported firm above 9166.25. Targets are 9192.50, 9215.25 and 9236.50. 

HSI

Hong Kong shares ended lower for a second straight session on Thursday amid weakness in healthcare and consumer stocks, as the number of confirmed cases of coronavirus in the city rose to 10.

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The Hang Seng index fell 2.6% to 26,449.13 points. Hong Kong’s de facto central bank said it will continue to monitor any impact from the spread the virus.

Plan A : Above 26809, do nothing.
Plan B : Below 25803, do nothing.
Plan C : Attempt to long if market rebounds from 26260.
Plan D : Cut below 26180.
Plan E : Consider to short if market does not beach above 26535.
Plan F : Cut above 26615.

E-Mini S&P 500

The Dow climbed 124.99 points, or 0.43%, to end the day at 28,859.44. The S&P 500 rose 0.31% to 3,283.66. The Nasdaq Composite closed 0.26% higher at 9,298.93. Stocks were down for much of the day as investors assessed the potential economic impact of the deadly coronavirus, but they reversed course after the World Health Organization declared the outbreak a global health emergency.

Chinese authorities said the death toll from the coronavirus has topped 150 with confirmed cases surpassing 8,000. This led investors to sell some of their equity holdings and buy into safe havens such as Treasurys, pushing the 10-year rate below its 3-month counterpart. This triggered a so-called yield-curve inversion, an event that has preceded recessions in the past. However, the major averages recovered after the WHO announcement, which noted that Chinese authorities had the situation under control and did not recommend restricting travel to China.

Facebook shares tumbled 6.14% after the company’s latest quarterly results showed a sharp increase in costs. Tesla, meanwhile, surged more than 10.30% after its fourth-quarter earnings topped expectations.

Caterpillar, Exxon Mobil and Chevron are scheduled to release earnings before the bell on Friday. Data on U.S. personal income along with consumer sentiment are also on deck.

About 200 S&P 500 companies have reported quarterly earnings thus far, with 70% of them posting better-than-expected profits, FactSet data shows.

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Plan A : Long if market supported firm above 3285.25. Targets are 3300.50, 3311.25 and 3320.50.

Plan B : Short if market failed to support above 3285.25. Targets are 3270.25, 3258.75 and 3247.25. 

E-Mini Nasdaq

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