Stocks plunge on coronavirus numbers

The number of confirmed coronavirus cases in the US passed 1,600 on Wednesday and fear of contagion sent US stocks down as the market gave up most of yesterday's gains.

In mid-day trading, the Dow Jones Industrial average fell as much as 1,000 points, but pared the loss to 970 points, or 3.84 percent, to 24,023.07. The S&P 500 lost 3.44 percent. Nasdaq Composite declined 3.29 percent. The Dow climbed 1,167 points on Tuesday.

The US currently has 1,622 cases, according to data from Johns Hopkins University on Wednesday. The number of people with the disease has doubled since Sunday alone. At least 31 people have died.

The number of confirmed coronavirus cases worldwide had climbed to 121,564, including 4,373 deaths., the university's data showed. But 66,239 people diagnosed with the disease, also called Covid-19, have recovered.

Investors fear the worldwide spread of coronavirus will disrupt production, curtail travel and erode retail sales, cutting revenue and making stocks at current prices too expensive.

"We expect major (higher income) economies to slow sharply in the coming months, with stagnation in the US and contraction in the Euro area in the second quarter," New York investment bank Goldman Sachs said in a research report.

"The main channels are increased supply chain disruptions in manufacturing industries dependent on Chinese-made components, a growing hit to consumer spending and business activity in areas that involve a high degree of face-to-face interactions, and a deterioration of financial conditions."

However, there are early signs that production in China is resuming. That would strengthen supply chains, including Apple which warned it expects lower revenue this quarter due to disruption caused by the coronavirus outbreak. Apple's stock lost 3.03 percent.

Brent Crude, a worldwide benchmark, fell 3.12 percent. West Texas Intermediate Crude declined 3.23 percent. Oil is often viewed as a proxy for future economic activity.

Copper, also considered at indicator of economic activity because it is used extensively in electrical products and construction, fell 0.75 percent.

Yield on the 10-year US Treasury note declined slightly as the price edged up as investors sought safety. Bond yield and price move in opposite directions.

US President Donald Trump plans to meet with top banking officials Wednesday afternoon to discuss the threat of the coronavirus.

Representatives from Goldman Sachs, Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are expected to attend. The full agenda has not been announced.

"We'll be talking to them about what they can do to help small businesses and companies that are impacted," Treasury Secretary Steven Mnuchin told reporters Monday.

Overall, the US economy is strong going into the coronavirus outbreak. Last week, the Labor Department reported that employers hired an additional 273,000 workers in February and wages rose 3 percent from a year earlier.

Economists surveyed by The Wall Street Journal expected employer to hire 175,000 new workers. The tight labor maker means companies must offer higher pay to attract and retain employees.

The US economy added an average of 243,000 jobs a month December through February. In 2019, monthly job growth averaged 178,000.

Travel and leisure stocks took a hit Wednesday as individuals and companies limit travel during the coronavirus outbreak.

In response, American Airlines, United Airlines and Delta have reduced the number of flights. Some cuts may extend through the summer.

American fell 8.12 percent. United lost 5.14 percent. Delta slid 7.17 percent.

Six Flags Entertainment, operator of about 25 theme parks across the nation, fell 8.01 percent.

Hotel chains were also clipped. Hyatt dropped 7.0 percent. Marriott International fell 6.20 percent. InterContinental fell 5.80.

Royal Caribbean Cruises fell 10.42 percent.

Major bank stocks declined. JPMorgan Chase lost 2.60 percent. Bank of America fell 2.01 percent. Citi fell 4.22 percent.