The markets are in rally mode again today led by Energy, which has taken a beating of late on worries that the coronavirus will slow global demand.  A report out from the World Health Organization (WHO) stating that there have been more new cases of the coronavirus in the last 24 hours since the outbreak began spooked the equity markets.  However, it didn’t last long, as investors were encouraged by news that researchers in China and the UK are possibly closer to developing a vaccine (energy traders were also encouraged, and oil is up 4%).  Health Care is the second highest gainer today.

Technology is a laggard.  And those following the gyration in Telsa (TSLA) are probably spinning. The stock is down about 15% today after Musk said that some Model 3 sales in China will be delayed due to coronavirus.  But, let’s keep things in perspective.  The stock is up about 75% since the beginning of the year.  Nonetheless, TSLA is a drag on the Nasdaq.

The advancers and stocks making new highs are clear cut winners today.

On the economic front, The ISM Non-Manufacturing Index for January was a read of 55.5%, the fastest pace of expansion since August 2019, compared to a downwardly revised 54.9%in December. This marks the second straight month of accelerating activity in the services sector.

• The New Orders Index rose to 56.2% from 55.3
• The Employment Index dropped to 53.1% from 54.8%
• The Prices Index declined to 55.5% from 59.3%
• The New Export Orders Index fell to 50.1% from 51.0%
• The Backlog of Orders Index dipped to 45.5% from 47.5%, the fourth straight month of contraction

Also released today, the goods and services deficit for December rose to $48.9 billion, up $5.2 billion from November's $43.7 billion. December exports were $209.6 billion, up $1.6 billion from November. December imports increased $6.8 billion from November to $258.5 billion.  The goods deficit with China declined by $73.9 billion in 2019 to $345.6 billion, as tariffs led to a $13.5 billion decline in exports and an $87.4 billion reduction in imports.