Stocks rebounded from their lows of the day after the World Health Organization calmed coronavirus fears.
 | THU, JAN 23, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | INTC | 63.32 | +0.59 | +0.94% | | PFE | 40.71 | +0.52 | +1.29% | | AAPL | 319.23 | +1.53 | +0.48% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | F | 9.14 | -0.02 | -0.22% | | GE | 11.77 | +0.40 | +3.52% | | FCX | 11.97 | -0.35 | -2.84% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | INTC | 63.32 | +0.59 | +0.94% | | AMD | 51.71 | +0.28 | +0.54% | | CMCSA | 45.65 | -1.79 | -3.77% | |
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With interest rates near historic lows it's a great time for companies to borrow - and borrow they have. CNBC's Jeff Cox reports that junk debt - or non-investment-grade bonds, loans and related instruments - is at a record high of nearly $1.2 trillion. It's no problem now because a strong economy and low interest rates allow companies to continually refinance. But what happens when the economy slows or interest rates rise?  Already, an increasing number of junk debt instruments are getting downgraded, Moody's analysts said in a report. "This greater percentage of lower-rated loans points to higher defaults in the next downturn," they said. No need to worry about junk debt now, though. Stocks rebounded from their lows earlier in the day when the World Health Organization said it's too early to declare the coronavirus outbreak an international health emergency. A deadly virus, rising debt loads, an impeachment trial and an upcoming election have done little to shake the market. "Investors are wondering what will ultimately crack this stock market," said Jim Paulsen, chief investment strategist at The Leuthold Group. "Even though a stock market correction is almost assured at some point, a sentiment refresh, alone, would not likely produce a sustained decline." Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. |
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