NYSE Dow Jones finished today at:

[bigdog]

U.S. stocks shook off their latest virus-induced loss and returned to record heights Wednesday, with several familiar faces doing the heaviest lifting.

Technology stocks helped lead the market higher, as they’ve been doing for years, and Apple rallied to recover most of its loss from the prior day. It dropped Tuesday after warning that revenue this quarter would fall short of forecasts due to the viral outbreak centered in China.

Worries remain about how disruptive the virus will be for manufacturing, travel and other economic activity across the region, but markets around the world rose as the number of new virus cases in China fell Wednesday. Expectations are also high that China and other central banks around the world will limit the economic damage through injections of cash into markets, lower interest rates and other stimulus measures, said Shawn Cruz, manager of trader strategy at TD Ameritrade.

The S&P 500 rose 15.86 points, or 0.5%, to 3,386.15 and surpassed its record set last week. The Dow Jones Industrial Average gained 115.84, or 0.4%, to 29,348.03. The Nasdaq climbed 84.44, or 0.9%, to 9,817.18 and also set a record.

The S&P/ASX 200 index looks set to continue its push higher this morning. According to the latest SPI futures, the ASX 200 is poised to rise 19 points or 0.3% at the open.

https://www.usnews.com/news/busines...n-higher-on-wall-street-led-by-tech-and-banks

US Stocks Brush off Latest Loss, Return to Record Heights
The S&P 500 returned to a record Wednesday, and technology stocks once again helped lead the market higher.
By Associated Press, Wire Service Content Feb. 19, 2020, at 4:31 p.m.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks shook off their latest virus-induced loss and returned to record heights Wednesday, with several familiar faces doing the heaviest lifting.

Technology stocks helped lead the market higher, as they’ve been doing for years, and Apple rallied to recover most of its loss from the prior day. It dropped Tuesday after warning that revenue this quarter would fall short of forecasts due to the viral outbreak centered in China.

Worries remain about how disruptive the virus will be for manufacturing, travel and other economic activity across the region, but markets around the world rose as the number of new virus cases in China fell Wednesday. Expectations are also high that China and other central banks around the world will limit the economic damage through injections of cash into markets, lower interest rates and other stimulus measures, said Shawn Cruz, manager of trader strategy at TD Ameritrade.

The S&P 500 rose 15.86 points, or 0.5%, to 3,386.15 and surpassed its record set last week. The Dow Jones Industrial Average gained 115.84, or 0.4%, to 29,348.03. The Nasdaq climbed 84.44, or 0.9%, to 9,817.18 and also set a record.

“I think markets are a little too rosy now,” Cruz said. “There is this assumption that the actual impact won’t be much, and if there is one, central banks will be able to step in and keep us alive.”

The problem arises if the virus lasts longer and does more damage than markets seem to be anticipating. “It seems like everyone is on the same side of the trade that this is going to be fine, which raises the potential for everyone to run for the door at the same time if central bank injections of cash aren’t going to cure anybody,” Cruz said.

Raising the potential volatility even more in such a scenario, Cruz said the companies most at risk to slowdowns in China are also those that have grown to become some of the biggest components of the S&P 500. That gives their movements outsized effects on index funds.

For now, at least, investors seem to be confident that China’s central bank, the Federal Reserve and other central banks can prop up the economy.

Low rates have been a key underpinning for the strong U.S. stock market, which has rallied even though growth in corporate profits has been weak. The Fed released minutes Wednesday afternoon from its last policy meeting, where officials said they see the current level of monetary policy “as likely to remain appropriate for a time,” at least until data on the economy shows a change in momentum.

Treasury yields rose Wednesday morning following a pair of stronger-than-expected reports on the U.S. economy. One showed stronger housing construction data than economists expected, while another showed inflation was higher than expected on the wholesale level in January.

But yields moderated as the day progressed. The yield on the 10-year Treasury rose to 1.56% from 1.55% late Tuesday, after earlier being as high as 1.58%. The two-year yield climbed to 1.41% from 1.39% after earlier touching 1.44%.

A generally still-slow global economy has put the spotlight on companies that are nevertheless able to produce strong revenue and profit growth, and that’s why tech stocks have been the market’s biggest stars for years.

On Wednesday, they once again helped pace the market. Besides Apple’s 1.4% gain, Nvidia jumped 6.1% and Advanced Micro Devices rose 3.5%. As a group, tech stocks in the S&P 500 climbed 1.1% for the second-largest gain among the 11 sectors that make up the index.

Tech stocks in the S&P 500 have surged 47.7% over the last 12 months, nearly double the rise for any of the index’s other sectors.

A longtime laggard was also high up the day's leaderboard. Energy stocks in the S&P 500 jumped 1.3%.

They climbed with the price of crude oil, while Concho Resources leaped 7.6% for the biggest gain in the S&P 500 after reporting stronger quarterly results than analysts expected.

The sector has been struggling as worries about weaker demand have weighed on the price of oil. Energy stocks have lost 15.5% over the last 12 months, the only sector in the S&P 500 to be down over that time.

Benchmark crude oil rose $1.27 to settle at $53.29 a barrel. Brent crude oil, the international standard, rose $1.37 to $59.12a barrel.

European stock markets also rallied, and the French CAC 40 climbed 0.9%. Germany’s DAX returned 0.8%, and the FTSE 100 jumped 1%.

In Asia, Japan’s Nikkei 225 rose 0.9%, the Hang Seng in Hong Kong added 0.5% and South Korea’s Kospi inched up 0.1%. Stocks in Shanghai lost 0.3%.

Wholesale gasoline rose 5 cents to $1.66 per gallon. Heating oil climbed 4 cents to $1.71 per gallon. Natural gas fell 2 cents to $1.96 per 1,000 cubic feet.

Gold rose $7.50 to $1,607.50 per ounce, silver rose 16 cents to $18.29 per ounce and copper was unchanged at $2.61 per pound.

The dollar rose to 111.58 Japanese yen from 109.88 yen on Tuesday. The euro strengthened to $1.0796 from $1.0794.

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[bigdog]

U.S. stocks spun lower in a dizzying day of trading Thursday as worries about the viral outbreak that started in China knocked the S&P 500 off its record high.

The market had started the day off higher following another round of stronger-than-expected reports on the U.S. economy, but it slumped suddenly in the late morning. The S&P 500 was down as much as 1.3% at one point, Treasury yields fell and the price of gold rose, before the moves moderated in the afternoon.

By the close of trading, the S&P 500 index had trimmed its loss to 0.4%, down 12.92 points to 3,373.23. The Dow Jones Industrial Average fell 128.05 points, or 0.4%, to 29,219.98, after earlier being down as many as 388 points. The Nasdaq composite lost 66.21, or 0.7%, to 9,750.96.

Market watchers said they didn’t see one clear trigger for the movements, which were reminiscent of the market’s sudden shifts during the height of the U.S.-China trade war, when stocks would swing sharply following tweets from President Donald Trump.

“You have this push and pull between good U.S. economic data and coronavirus fears,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “You’re playing that back and forth, almost as you were during the trade war, where people were reacting to changes minute by minute.”

Stocks had been pushing higher for weeks, as investor belief hardened that stimulus and other efforts by central banks and governments around the world could limit the economic pain created by the virus. China’s central bank on Thursday cut its one-year prime rate to 4.05% from 4.15%.

The S&P/ASX 200 index looks set for a subdued finish to the week. According to the latest SPI futures, the ASX 200 is poised open the day flat this morning.

https://www.usnews.com/news/busines...tocks-lead-wall-street-indexes-slightly-lower

S&P 500 Spins Lower in Choppy Trading as Caution Returns
U.S. stocks spun lower in a dizzying day of trading Thursday as worries about the viral outbreak that started in China knocked the S&P 500 off its record high.
By Associated Press, Wire Service Content Feb. 20, 2020, at 4:38 p.m.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks spun lower in a dizzying day of trading Thursday as worries about the viral outbreak that started in China knocked the S&P 500 off its record high.

The market had started the day off higher following another round of stronger-than-expected reports on the U.S. economy, but it slumped suddenly in the late morning. The S&P 500 was down as much as 1.3% at one point, Treasury yields fell and the price of gold rose, before the moves moderated in the afternoon.

By the close of trading, the S&P 500 index had trimmed its loss to 0.4%, down 12.92 points to 3,373.23. The Dow Jones Industrial Average fell 128.05 points, or 0.4%, to 29,219.98, after earlier being down as many as 388 points. The Nasdaq composite lost 66.21, or 0.7%, to 9,750.96.

Market watchers said they didn’t see one clear trigger for the movements, which were reminiscent of the market’s sudden shifts during the height of the U.S.-China trade war, when stocks would swing sharply following tweets from President Donald Trump.

“You have this push and pull between good U.S. economic data and coronavirus fears,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “You’re playing that back and forth, almost as you were during the trade war, where people were reacting to changes minute by minute.”

Stocks had been pushing higher for weeks, as investor belief hardened that stimulus and other efforts by central banks and governments around the world could limit the economic pain created by the virus. China’s central bank on Thursday cut its one-year prime rate to 4.05% from 4.15%.

But critics said stocks may have run too high, too fast given how uncertain COVID-19’s full impact on the global economy will be. South Korea’s fourth-largest city, far from the center of the viral outbreak in China, urged residents to stay inside. The worry is that the number of new cases, which has been falling, could re-accelerate.

“Until we get a more definitive sign that the top is in, you’re going to have volatility back and forth and trades off coronavirus headlines,” Schutte said.

One measure of fear in the stock market, which shows how much traders are paying to protect themselves from future swings in the S&P 500, was up nearly 20% at one point in midday trading before more than halving the gain.

The increased caution pushed up the price of gold, which touched its highest price since early 2013. Investors also piled into the safety of U.S. government bonds, which in turn weighed on their yields. The 10-year Treasury’s yield sank to 1.52% from 1.57% late Wednesday.

Besides the toll on human lives, investors worry about how much economic damage the virus will cause. It’s already led to sharp drop-offs in manufacturing, travel and other economic activity in China, and the fear is how long that will last and how far it will spread in the interconnected global economy.

The world’s largest shipping company, Denmark’s A.P. Moller Maersk, said Thursday it expects a weak start to the year due to the virus. Air France, meanwhile, said that COVID-19 could mean a hit of up to 200 million euros, or $220 million, for its operating results from February to April. Procter & Gamble’s chief financial officer told analysts that traffic at stores in China, its second-largest market, is down considerably, though it held firm on its forecast ranges for sales and profit this year.

The worries overshadowed another set of encouraging data on the U.S. economy. A survey of manufacturers in the mid-Atlantic region jumped to its highest level since February 2017, and a separate report showed leading economic indicators in the United States rose more in January than economists forecast. The number of workers applying for jobless claims rose a touch, but it still remains low.

ViacomCBS slid 17.9% for the largest loss in the S&P 500 after it reported weaker results for the latest quarter than analysts expected.

The biggest gainer, meanwhile, was E-Trade Financial, which jumped 21.8% after Morgan Stanley said it would buy the online brokerage.

European markets were lower, with Germany’s DAX losing 0.9% and France’s CAC 40 down 0.8%. The FTSE 100 in London dipped 0.3%.

In South Korea, where authorities reported the country’s first COVID-19 fatality, the Kospi sank 0.7%. Japan’s Nikkei 225 rose 0.3%, the Hang Seng dipped 0.2% and stocks in Shanghai jumped 1.8%.

Benchmark crude oil rose 49 cents to settle at $53.78 a barrel. Brent crude oil, the international standard, rose 19 cents to $59.31 per barrel. Wholesale gasoline rose 1 cent to $1.67 per gallon. Heating oil declined 1 cent to $1.70 per gallon. Natural gas fell 4 cents to $1.92 per 1,000 cubic feet.

Gold rose $9.10 to $1,616.60 per ounce, silver rose 2 cents to $18.31 per ounce and copper fell 1 cent to $2.60 per pound.

The dollar rose to 112.06 Japanese yen from 111.58 yen on Wednesday. The euro weakened to $1.0790 from $1.0796.

 

[bigdog]

Stocks fell and bond prices rose sharply on Wall Street Friday amid signs that economic fallout from the viral outbreak that originated in China is hurting U.S. companies.

The yield on the 30-year Treasury reached a record low as investors sought the safety of U.S. government bonds. The price of gold climbed 1.7%.

New data showing manufacturing and business activity suddenly slowed this month stoked investors' anxiety over the outbreak’s impact on company profits. New reports that infections are spreading added to traders' jitters.

“There's a little bit more concern about how hard this is going to impact, not just Asia, but also the broad global economy,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

Technology stocks led the selling. Retailers, travel-related companies, banks and communication services stocks also took heavy losses. The sell-off capped a volatile, holiday shortened week that left the benchmark S&P 500 index with its first weekly loss after two weeks of gains.

The S&P 500 index fell 35.48 points, or 1.1%, to 3,337.75. The Dow Jones Industrial Average slid 227.57 points, or 0.8%, to 28,992.41. The Nasdaq lost 174.37 points, or 1.8%, to 9,576.59.

The Russell 2000 index of smaller company stocks gave up 17.46 points, or 1%, to 1,678.61.

Asian and European markets also fell.

https://www.usnews.com/news/busines...er-on-wall-street-following-weakness-overseas

Stocks Sink, Treasury Prices Soar as Investors Seek Safety
Stocks fell and bond prices rose sharply on Wall Street Friday amid fresh signs that the viral outbreak that originated in China is weighing on U.S. companies.
By Associated Press, Wire Service Content Feb. 21, 2020, at 4:53 p.m.

By ALEX VEIGA, AP Business Writer

Stocks fell and bond prices rose sharply on Wall Street Friday amid signs that economic fallout from the viral outbreak that originated in China is hurting U.S. companies.

The yield on the 30-year Treasury reached a record low as investors sought the safety of U.S. government bonds. The price of gold climbed 1.7%.

New data showing manufacturing and business activity suddenly slowed this month stoked investors' anxiety over the outbreak’s impact on company profits. New reports that infections are spreading added to traders' jitters.

“There's a little bit more concern about how hard this is going to impact, not just Asia, but also the broad global economy,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.

Technology stocks led the selling. Retailers, travel-related companies, banks and communication services stocks also took heavy losses. The sell-off capped a volatile, holiday shortened week that left the benchmark S&P 500 index with its first weekly loss after two weeks of gains.

The S&P 500 index fell 35.48 points, or 1.1%, to 3,337.75. The Dow Jones Industrial Average slid 227.57 points, or 0.8%, to 28,992.41. The Nasdaq lost 174.37 points, or 1.8%, to 9,576.59.

The Russell 2000 index of smaller company stocks gave up 17.46 points, or 1%, to 1,678.61.

Asian and European markets also fell.

Investors have been trying to gauge how damaging the virus outbreak will be to corporate earnings, and whether supply chain interruptions, softer sales and other problems stemming from travel restrictions, business and factory closures in China will continue to hurt companies well beyond the first quarter.

Several better-than-expected reports on the economy helped raise optimism earlier this week that the outbreak is not having a broad impact on the U.S. economy, but Friday's clunker from IHS Markit fueled doubts.

Preliminary data suggest U.S. business activity pulled back in February, the first month of contraction since 2013. Economists had expected the survey of manufacturers and service companies to show another month of growth.

Much of the drop-off was due to a weaker services sector, where output fell for the first time in four years, "but manufacturing also ground almost to a halt due to a near-stalling of orders," IHS chief business economist Chris Williamson said in a statement. He attributed some of the month's deterioration to the viral outbreak, which weakened demand for travel and tourism.

One encouraging sign in the report was that businesses seem optimistic the slowdown will be only short-lived.

For now, companies like Coca-Cola continue to grapple with the economic fallout of the outbreak. The beverage giant is the latest big name to warn investors about the potential impact on its finances from the outbreak. China is a big market for the company, and Coke now expects a hit of 2 cents per share to its first-quarter profit.

Universal Display, which makes LED-technology for televisions and other products, expects the virus to hurt orders in 2020. The International Air Transport Association said the virus threatens to erase $29 billion of this year’s revenue for global airlines, mostly for Chinese carriers.

South Korea said 204 people have been infected with the virus, quadruple the number of cases it had two days earlier. More than 76,000 people have been infected globally, with most of the cases and deaths centered in China. That nation’s leadership on Friday shifted to a more cautious tone and said it has not yet reached a turning point for the virus and the situation in the hardest hit province remains grave.

The economic data and virus outbreak news led investors to seek the safety of U.S. government bonds, pulling yields sharply lower.

The yield on the 30-year Treasury reached a record low of 1.886%, according to Tradeweb. It was 1.98% late Thursday. The yield on the more closely followed 10-year Treasury fell to 1.47% from 1.52%. That yield, which is a benchmark for mortgages and other kinds of loans, was close to 1.90% at the start of this year.

Expectations have been building among traders that the Federal Reserve will need to cut interest rates this year to help the economy. They’re pricing in a 90% probability of at least one cut this year, up from an 85% probability a day ago and a 58% probability a month ago.

Technology companies accounted for much of the selling Friday. Chipmakers, which rely heavily on China for both sales and supply chains, were some of the worst hit. Advanced Micro Devices slid 7%, while Nvidia fell 4.7%.

Companies that depend on consumer spending, especially in travel-related industries, also fell broadly. Marriott International shed 2.5% and Carnival fell 1.9%. American Airlines dropped 2.4%.

General Motors lost 1.8% and other automakers slipped as the virus hurts auto sales in China.

Real estate companies and utilities held up better than the rest of the market.

Deere’s latest quarterly report card was a bright spot. Its shares jumped 7% after the farm equipment maker handily beat Wall Street’s fiscal first-quarter profit forecasts. The company is coming out of an extended period in which it was bruised by the ongoing trade war between the U.S. and China.

Benchmark crude oil fell 50 cents to settle at $53.38 a barrel. Brent crude oil, the international standard, dropped 81 cents to close at $58.50 a barrel. Wholesale gasoline fell 2 cents to $1.65 per gallon. Heating oil declined 1 cent to $1.69 per gallon. Natural gas fell 1 cent to $1.91 per 1,000 cubic feet.

Gold rose $28.00 to $1,644.60 per ounce, silver rose 22 cents to $18.52 per ounce and copper rose 2 cents to $2.62 per pound.

The dollar rose to 111.62 Japanese yen from 112.06 yen on Thursday. The euro strengthened to $1.0858 from $1.0790.

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[bigdog]

The S&P/ASX 200 index looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is poised to tumble 0.65% or 47 points at the open.

 

[bigdog]

The Dow Jones Industrial Average slumped more than 1,000 points Monday in the worst day for the stock market in two years as investors worry that the spread of a viral outbreak that began in China will weaken global economic growth.

Traders sought safety in U.S. government bonds, gold and high-dividend stocks like utilities and real estate. The yield on the 10-year Treasury fell to the lowest level in more than three years.

Technology stocks accounted for much of the broad market slide, which wiped out all of the Dow’s and S&P 500’s gains for the year.

More than 79,000 people worldwide have been infected by the new coronavirus. China, where the virus originated, still has the majority of cases and deaths. The rapid spread to other countries is raising anxiety about the threat the outbreak poses to the global economy.

“Stock markets around the world are beginning to price in what bond markets have been telling us for weeks – that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

The Dow lost 1,031.61 points, or 3.6%, to 27,960.80. At its low point, it was down 1,079 points.

The S&P 500 index skidded 111.86 points, or 3.4%, to 3,225.89. The Nasdaq dropped 355.31 points, or 3.7%, to 9,221.28 - it’s biggest loss since December 2018.

The Russell 2000 index of smaller company stocks gave up 50.50 points, or 3%, to 1,628.10.

Investors looking for safe harbors bid up prices for U.S. government bonds and gold. The yield on the 10-year Treasury note fell sharply, to 1.37% from 1.47% late Friday. It was at 1.90% at the start of the year. Gold prices jumped 1.7%.

The S&P/ASX 200 index looks set to continue its slide on Tuesday. According to the latest SPI futures, the ASX 200 is poised to tumble a further 2% or 137 points at the open.

https://www.usnews.com/news/busines...kets-plunge-as-virus-cases-spread-beyond-asia

Dow Drops More Than 1,000 as Outbreak Threatens the Economy
The Dow Jones Industrial Average sank more than 1,000 points as the spread of the new coronavirus threatened wider damage to the global economy.
By Associated Press, Wire Service Content Feb. 24, 2020, at 4:51 p.m.

By ALEX VEIGA and DAMIAN J. TROISE, AP Business Writers

The Dow Jones Industrial Average slumped more than 1,000 points Monday in the worst day for the stock market in two years as investors worry that the spread of a viral outbreak that began in China will weaken global economic growth.

Traders sought safety in U.S. government bonds, gold and high-dividend stocks like utilities and real estate. The yield on the 10-year Treasury fell to the lowest level in more than three years.

Technology stocks accounted for much of the broad market slide, which wiped out all of the Dow’s and S&P 500’s gains for the year.

More than 79,000 people worldwide have been infected by the new coronavirus. China, where the virus originated, still has the majority of cases and deaths. The rapid spread to other countries is raising anxiety about the threat the outbreak poses to the global economy.

“Stock markets around the world are beginning to price in what bond markets have been telling us for weeks – that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

The Dow lost 1,031.61 points, or 3.6%, to 27,960.80. At its low point, it was down 1,079 points.

The S&P 500 index skidded 111.86 points, or 3.4%, to 3,225.89. The Nasdaq dropped 355.31 points, or 3.7%, to 9,221.28 - it’s biggest loss since December 2018.

The Russell 2000 index of smaller company stocks gave up 50.50 points, or 3%, to 1,628.10.

Investors looking for safe harbors bid up prices for U.S. government bonds and gold. The yield on the 10-year Treasury note fell sharply, to 1.37% from 1.47% late Friday. It was at 1.90% at the start of the year. Gold prices jumped 1.7%.

Crude oil prices slid 3.7%. Aside from air travel, the virus poses an economic threat to global shipping.

Benchmark crude oil fell $1.95 to settle at $51.43 a barrel. Brent crude oil, the international standard, dropped $2.20 to close at $56.30 a barrel.

The slump in U.S. indexes followed a sell-off in markets overseas as a surge in cases of the disease in South Korea and Europe rattled investors.

Germany’s DAX slid 4% and Italy's benchmark index dropped 5.4%. South Korea’s Kospi shed 3.9% and markets in Asia fell broadly.

South Korea is now on its highest alert for infectious diseases after cases there spiked. Italy reported a sharp rise in cases and a dozen towns in the northern, more industrial part of that country are under quarantine. The nation now has the biggest outbreak in Europe, prompting officials to cancel Venice’s famed Carnival, along with soccer matches and other public gatherings.

There are also more cases of the virus being reported in the Middle East as it spreads to Iran, Iraq, and Kuwait, among others.

The viral outbreak threatens to crimp global economic growth and hurt profits and revenue for a wide range of businesses. Companies from technology giant Apple to athletic gear maker Nike have already warned about a hit to their bottom lines. Airlines and other companies that depend on travelers are facing pain from cancelled plans and shuttered locations.

Technology companies were among the worst hit by the sell-off. Apple, which depends on China for a lot of business, slid 4.8%. Microsoft dropped 4.3%. Banks were also big losers. JPMorgan Chase fell 2.7% and Bank of America slid 4.7%.

Airlines and cruise ship operators also slumped. American Airlines lost 8.5%, Delta Air Lines dropped 6.3%, Carnival skidded 9.4% and Royal Caribbean Cruises tumbled 9%.

Gilead Sciences climbed 4.6% and was among the few bright spots. The biotechnology company is testing a potential drug to treat the new coronavirus. Bleach-maker Clorox was also a standout, rising 1.5%.

Utilities and real estate companies held up better than most sectors. Investors tend to favor those industries, which carry high dividends and hold up relatively well during periods of turmoil, when they're feeling fearful.

The rotation into defensive sectors has made utilities and real estate the biggest gainers this year, while technology stocks have lost ground.

“The yields have been moving lower all year, so that's providing a tail wind for utilities, for real estate,” said Willie Delwiche, investment strategist at Baird. “In the face of this heightened uncertainty, especially if it's centered overseas, tech is going to bear some of the brunt of that because it's been so popular, because it's done so well, and because it has so much exposure to Asia.”

In the eyes of some analysts, Monday’s tank job for stocks means they’re just catching up to the bond market, where fear has been dominant for months.

U.S. government bonds are seen as some of the safest possible investments, and investors have been piling into them throughout 2020, even as stocks overcame stumbles to set more record highs. The 10-year yield on Monday was near its intraday record low of 1.325% set in July 2016, according to Tradeweb. The 30-year Treasury yield fell further after setting its own record low, down to 1.83% from 1.92% late Friday.

Traders are increasingly certain that the Federal Reserve will cut interest rates at least once in 2020 to help prop up the economy. They’re pricing in a nearly 95% probability of a cut this year, according to CME Group. A month ago, they saw only a 68% probability.

Of course, some analysts say stocks have been rising in recent weeks precisely because of the drop in yields. Bonds are offering less in interest after the Federal Reserve lowered rates three times last year — the first such cuts in more than a decade — and amid low inflation. When bonds are paying such meager amounts, many investors say there’s little real competition other than stocks for their money.

The view has become so hardened that “There Is No Alternative,” or TINA, has become a popular acronym on Wall Street. Even with Monday’s sharp drops, the S&P 500 is still within 4.2% of its record set earlier this month.

In other commodities trading Monday, wholesale gasoline fell 4 cents to $1.61 per gallon, heating oil declined 8 cents to $1.61 per gallon and natural gas fell 8 cents to $1.83 per 1,000 cubic feet.

Gold rose $27.80 to $1,672.40 per ounce, silver rose 35 cents to $18.87 per ounce and copper fell 3 cents to $2.59 per pound.

The dollar fell to 110.74 Japanese yen from 111.62 yen on Friday. The euro weakened to $1.0842 from $1.0858.

 

[bigdog]

Stocks slumped again on Wall Street Tuesday, piling on losses a day after the market's biggest drop in two years as fears spread that the growing virus outbreak will put the brakes on the global economy.

Nervous investors snapped up low-risk U.S. government bonds, sending the yield on the 10-year Treasury note to a record low.

The benchmark S&P 500 has lost 7.6% over the last four days, it’s worst such stretch since the end of 2018. Tuesday also marked the first back-to-back 3% losses for the index since the summer of 2015.

The latest wave of selling came as more companies, including United Airlines and Mastercard, warned that the outbreak will hurt their finances, and more cases were reported in Europe and the Middle East, far outside the epicenter in China. Meanwhile, U.S. health officials called on Americans to be prepared for the disease to spread in the United States, where there are currently just a few dozen cases.

The Dow Jones Industrial Average dropped 879 points, for a two-day loss of 1,911 points. Travel-related stocks took another drubbing, bringing the two-day loss for American Airlines to 16.9%. The large publicly traded cruise operators have also suffered double-digit losses.

The worst-case scenario for investors — where the virus spreads around the world and cripples supply chains and the global economy — hasn't changed in the last few weeks. But the probability of it happening has risen, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

"It's the combination of South Korea, Japan, Italy and even Iran" reporting virus cases, Ma said. “That really woke up the market, that these four places in different places around the globe can go from low concern to high concern in a matter of days and that we could potentially wake up a week from now and it could be five to 10 additional places.”

The S&P 500 index fell 97.68 points, or 3%, to 3,128.21. The Dow Jones Industrial Average sank 879.44 points, or 3.2%, to 27,081.36, following a drop of more than 1,000 points Monday. The Nasdaq lost 255.67 points, or 2.8%, to 8,965.61, erasing its gains for the year. The Russell 200 index of smaller company stocks dropped 55.53 points, or 3.4%, to 1,572.57.

European markets also fell. Markets in Asia were mixed.

Technology stocks, which rely heavily on China for both sales and supply chains, once again led the decline. Apple dropped 3.4% and chipmaker Nvidia slid 4.1%

It looks set to be another disappointing day of trade for the S&P/ASX 200 index after the coronavirus spread into the United States and spooked global financial markets. According to the latest SPI futures, the ASX 200 is poised to fall a further 166 points or 2.4% at the open.

https://www.usnews.com/news/busines...n-slightly-higher-after-worst-drop-in-2-years

Stocks Sink, Bonds Soar on Fears Virus Will Stunt Economy
Stocks slumped and bond prices soared for the second day in a row as fears spread that the widening virus outbreak will put the brakes on the global economy.
By Associated Press, Wire Service Content Feb. 25, 2020, at 4:30 p.m.

By ALEX VEIGA and STAN CHOE, AP Business Writers

Stocks slumped again on Wall Street Tuesday, piling on losses a day after the market's biggest drop in two years as fears spread that the growing virus outbreak will put the brakes on the global economy.

Nervous investors snapped up low-risk U.S. government bonds, sending the yield on the 10-year Treasury note to a record low.

The benchmark S&P 500 has lost 7.6% over the last four days, it’s worst such stretch since the end of 2018. Tuesday also marked the first back-to-back 3% losses for the index since the summer of 2015.

The latest wave of selling came as more companies, including United Airlines and Mastercard, warned that the outbreak will hurt their finances, and more cases were reported in Europe and the Middle East, far outside the epicenter in China. Meanwhile, U.S. health officials called on Americans to be prepared for the disease to spread in the United States, where there are currently just a few dozen cases.

The Dow Jones Industrial Average dropped 879 points, for a two-day loss of 1,911 points. Travel-related stocks took another drubbing, bringing the two-day loss for American Airlines to 16.9%. The large publicly traded cruise operators have also suffered double-digit losses.

The worst-case scenario for investors — where the virus spreads around the world and cripples supply chains and the global economy — hasn't changed in the last few weeks. But the probability of it happening has risen, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

"It's the combination of South Korea, Japan, Italy and even Iran" reporting virus cases, Ma said. “That really woke up the market, that these four places in different places around the globe can go from low concern to high concern in a matter of days and that we could potentially wake up a week from now and it could be five to 10 additional places.”

The S&P 500 index fell 97.68 points, or 3%, to 3,128.21. The Dow Jones Industrial Average sank 879.44 points, or 3.2%, to 27,081.36, following a drop of more than 1,000 points Monday. The Nasdaq lost 255.67 points, or 2.8%, to 8,965.61, erasing its gains for the year. The Russell 200 index of smaller company stocks dropped 55.53 points, or 3.4%, to 1,572.57.

European markets also fell. Markets in Asia were mixed.

Technology stocks, which rely heavily on China for both sales and supply chains, once again led the decline. Apple dropped 3.4% and chipmaker Nvidia slid 4.1%.

Bond prices continued rising. The yield on the 10-year Treasury fell as low as 1.31%, a record, according to TradeWeb, before recovering somewhat to 1.32% in the afternoon. The yield is down from 1.37% late Monday and far below the 1.90% it stood at in early 2020.

The lower bond yields, which force interest rates lower on mortgages and other loans, weighed on banks. JPMorgan Chase slid 4.5% and Bank of America fell 5%.

Real estate companies and utilities also declined, though they held up better than the rest of the market as investors favored safe-play stocks.

The viral outbreak that originated in China has now infected more than 80,000 people globally, with more cases being reported in Europe and the Middle East. The majority of cases and deaths remain centered in China, but the rapid spread to other parts of the world has spooked markets and raised fears that it will hurt the global economy.

On Tuesday, U.S. health officials warned that it's inevitable the virus will spread more widely in America.

"It's not so much a question of if this will happen anymore, but rather more a question of exactly when this will happen - and how many people in this country will have severe illness," Dr. Nancy Messonnier of the Centers for Disease Control and Prevention said in a call with reporters.

United Airlines tumbled 6.5% after withdrawing its financial forecasts for the year because of the impact on demand for air travel. Mastercard dropped 6.7% after saying the impact on cross-border travel and business could cut into its revenue, depending on the duration and severity of the virus outbreak.

Moderna surged 27.8% after the company sent its potential virus vaccine to government researchers for additional testing. The biotechnology company is one several drug developers racing to develop vaccine.

Energy companies have been some of the hardest hit on worries that a weakened global economy will burn less fuel. Exxon Mobil is down 10.2% over the last four days, and the slump has wiped away nearly $26 billion in market value.

But the losses extend far beyond the energy sector. A rapidly spreading virus threatens factories, shipments of parts and customers for businesses around the world. At Apple, which said last week that the virus will force it to fall sort of a previous quarterly revenue forecast, $158.6 billion in market value has vanished in the last four days.

One measure of fear in the market, which shows how much traders are paying to protect themselves from future swings for the S&P 500, touched its highest level since December 2018, when stocks were tumbling on worries about a possible recession.

The chief risk is that the stock market was already “priced to perfection,” or something close to it, before the virus worries exploded, according to Brian Nick, chief investment officer at Nuveen.

After getting the benefit of three interest-rate cuts from the Federal Reserve last year and the consummation of a “Phase 1” U.S.-China trade deal, investors were willing to pay high prices for stocks on the expectation that profits would grow in the future. The S&P 500 was recently trading at its most expensive level, relative to its expected earnings per share, since the dot-com bubble was deflating in 2002, according to FactSet.

If profit growth doesn’t ramp up this year, that makes a highly priced stock market even more vulnerable. After a growing number of companies have cut or withdrawn their revenue and profit forecasts for the year, analysts have slashed their expectations for S&P 500 earnings growth to 7.9% for this year, down from expectations of 9.6% at the start of 2020, according to FactSet.

 

[bigdog]

Major U.S. stock indexes gave up early gains and closed mostly lower Wednesday, extending the market’s heavy losses for the week.

The benchmark S&P 500 fell for the fifth straight day after swinging between a 0.6% loss and 1.7% gain. Smaller company stocks bore the brunt of the selling. The bond market continued to flash warning signs as long-term Treasury yields fell further below short-term yields.

Worry about economic fallout from the virus outbreak that originated in China has fueled a sharp sell-off this week that’s wiped out the market’s gains for the year.

The virus continues to spread and threatens to hurt industrial production, consumer spending, and travel. More cases are being reported in Europe and the Middle East. Health officials in the U.S. have been warning Americans to prepare for the virus.

“The market is still digesting the full impact of what the coronavirus could mean for global GDP growth and, more importantly, on earnings growth for a lot of companies,” said Nadia Lovell, U.S. equity strategist at J.P. Morgan Private Bank.

The S&P 500 index fell 0.4%. It’s on track for its biggest monthly decline since May. The Dow Jones Industrial Average dropped 123.77 points, for a three-day loss of 2,034 points. A modest rally in technology stocks helped nudge the Nasdaq composite to a 0.2% gain.

Smaller company stocks fell the most. The Russell 2000 index lost 1.2%.

European markets were mostly higher and Asian markets fell.

The S&P/ASX 200 index looks set to slide lower again after a rebound on Wall Street ran out of legs. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.4% lower this morning.

https://apnews.com/e33ecc966e684fc62e992c2a60645563

Stocks slide on Wall Street, extending steep drops this week
By ALEX VEIGA

Major U.S. stock indexes gave up early gains and closed mostly lower Wednesday, extending the market’s heavy losses for the week.

The benchmark S&P 500 fell for the fifth straight day after swinging between a 0.6% loss and 1.7% gain. Smaller company stocks bore the brunt of the selling. The bond market continued to flash warning signs as long-term Treasury yields fell further below short-term yields.

Worry about economic fallout from the virus outbreak that originated in China has fueled a sharp sell-off this week that’s wiped out the market’s gains for the year.

The virus continues to spread and threatens to hurt industrial production, consumer spending, and travel. More cases are being reported in Europe and the Middle East. Health officials in the U.S. have been warning Americans to prepare for the virus.

“The market is still digesting the full impact of what the coronavirus could mean for global GDP growth and, more importantly, on earnings growth for a lot of companies,” said Nadia Lovell, U.S. equity strategist at J.P. Morgan Private Bank.

The S&P 500 index fell 0.4%. It’s on track for its biggest monthly decline since May. The Dow Jones Industrial Average dropped 123.77 points, for a three-day loss of 2,034 points. A modest rally in technology stocks helped nudge the Nasdaq composite to a 0.2% gain.

Smaller company stocks fell the most. The Russell 2000 index lost 1.2%.

European markets were mostly higher and Asian markets fell.

A burst of morning buying had stocks on track for modest gains, but the rally mostly faded by the end of the day, reflecting ongoing concerns among investors about the new coronavirus.

The outbreak has now infected more than 81,000 people globally and continues spreading. Brazil has confirmed the first case in Latin America. Germany, France and Spain were among the European nations with growing caseloads. New cases are also being reported in several Middle Eastern nations.

U.S. cases currently total 57, and the White House has requested $2.5 billion for vaccine development, treatment and protective equipment. On Tuesday, U.S. health officials called on Americans to be prepared for the disease to spread in the United States.

Bond yields headed lower for much of the day, but then recovered mostly. The yield on the 10-year Treasury inched up to 1.34% from 1.33% late Tuesday. The yield on the 3-month Treasury bill edged up to 1.51%. The inversion in the yield between the 10-year and the 3-month Treasurys is a red flag for investors, because it has been a warning signal that has a fairly accurate track record of preceding the last seven recessions.

“The bond market is sending us some warning signals that we should pay attention to and that’s what you see playing out in the market today,” Lovell said.

Investors have been moving more money into bonds in the wake of the outbreak. Traders are concerned the global economy could slow down as the world’s second-largest economy struggles to contain the outbreak.

“A slowdown definitely is on the horizon, but it’s transitory,” Lovell said. “I would expect economic growth to reaccelerate in the back half of the year as China starts to come online.”

Energy companies led the selling Wednesday as the price of U.S. crude oil fell 2.3%.

Cruise operators continued falling amid persistent virus fears. Norwegian Cruise Line Holdings fell 7.9%, Royal Caribbean Cruises dropped 8.1% and Carnival slid 7.5%.

Other companies that depend on travelers also declined. Expedia lost 7.1%.

Technology stocks eked out a modest gain. The tech sector was among the worst hit by sell-offs this week as many of the companies rely on global sales and supply chains that could be stifled by the spreading outbreak. Microsoft rose 1.2% and Adobe rose 1%.

TJX, the parent of retailer TJ Maxx, surged 7.2% after beating Wall Street’s fourth-quarter profit forecasts and raising its dividend.

Disney fell 3.8% a day after Bob Iger’s surprise announcement that he will immediately step down as CEO of the giant entertainment company. Iger steered the company’s absorption of big moneymakers, including Star Wars, Pixar, Marvel and Fox’s entertainment businesses. He also oversaw the launch of the Disney Plus streaming video service.

Toll Brothers slid 14.6% after the homebuilder reported disappointing fiscal first-quarter profit. The poor results weighed on nearly all homebuilder stocks. D.R. Horton fell 2.6%.

A government report Wednesday showed that sales of new homes jumped 7.9% in January to the fastest pace in more than 12 years.

MARKET ROUNDUP:

The S&P 500 index fell 11.82 points, or 0.4%, to 3,116.39. The Dow dropped 123.77 points, or 0.5%, to 26,957.59.

The Nasdaq gained 15.16 points, or 0.2%, to 8,980.77. The Russell 200 index of smaller company stocks dropped 19.14 points, or 1.2%, to 1,552.76.

Benchmark crude oil fell $1.17 to settle at $48.73 a barrel. Brent crude oil, the international standard, dropped $1.52 to close at $53.43 a barrel. Wholesale gasoline fell 8 cents to $1.45 per gallon. Heating oil declined 7 cents to $1.50 per gallon. Natural gas fell 3 cents to $1.82 per 1,000 cubic feet.

Gold fell $6.90 to $1,640.00 per ounce, silver fell 36 cents to $17.83 per ounce and copper fell 1 cent to $2.58 per pound.

The dollar rose to 110.22 Japanese yen from 110.12 yen on Tuesday. The euro strengthened to $1.0897 from $1.0881.

 

[bigdog]

The Dow Jones Industrial Average sank nearly 1,200 points Thursday, deepening a week long global market rout caused by worries that the coronavirus outbreak will wreak havoc on the global economy.

Bond prices soared again, sending the yield on the 10-year Treasury to another record low. When yields fall it's a sign that investors are feeling less confident about the strength of the economy going forward.

"People can demand things that feel safe for irrational amounts of time," said Katy Kaminski, chief research strategist at AlphaSimplex Group. "It doesn't matter, the fundamentals, when people are worried."

The latest losses extended a slide in stocks that has wiped out the solid gains the major indexes had posted early this year.

The S&P 500 is now 12% below the all-time high it set just a week ago. This is now the stock market’s worst week since October 2008, when Wall Street was mired in the financial crisis.

Investors came into 2020 feeling confident that the Federal Reserve would keep interest rates at low levels and the U.S.-China trade war posed less of a threat to company profits after the two sides reached a preliminary agreement in January. The virus outbreak has upended that rosy scenario as economists lower their expectations for economic growth and companies warn of a hit to their business.

The S&P 500 index's sharp decline from its last record high puts it in what market watchers call a “correction,” a normal phenomenon that analysts have said was long overdue in this bull market, which is the longest in history.

Microsoft warned that the virus outbreak had interrupted its supply lines and would hurt its financial performance, following a similar warning last week from Apple. The two stocks led another sell-off among technology companies. Energy stocks fell sharply as the price of oil dropped 3.4%.

“This is a market that’s being driven completely by fear,” said Elaine Stokes, portfolio manager at Loomis Sayles, with market movements following the classic characteristics of a fear trade: stocks are down, commodities are down and bonds are up.

Stokes said the swoon reminded her of the market’s reaction following the Sept. 11, 2001 terrorist attacks.

“Eventually we’re going to get to a place where this fear, it’s something that we get used to living with, the same way we got used to living with the threat of living with terrorism,” she said. “But right now, people don’t know how or when we’re going to get there, and what people do in that situation is to retrench."

The S&P 500 fell 137.63 points, or 4.4%, to 2,978.76, its biggest one-day drop since 2011.

The Dow fell 1,190.95 points, or 4.4%, to 25,766.64. The Nasdaq dropped 414.29 points, or 4.6%, to 8,566.48. The Russell 2000 index of smaller company stocks lost 54.89 points, or 3.5%, to 1,497.87.

The S&P/ASX 200 index looks set to finish the week on a very disappointing note after global markets continued to be sold off. According to the latest SPI futures, the ASX 200 is expected to open the day 94 points of 1.4% lower.

https://www.usnews.com/news/busines...sharply-lower-dow-10-below-recent-record-high

Stock Market Rout Deepens on Virus Worries; Indexes Lose 4%
The Dow Jones Industrial Average sank nearly 1,200 points Thursday, deepening a weeklong global market rout caused by worries that the coronavirus outbreak will wreak havoc on the global economy.
By Associated Press, Wire Service Content Feb. 27, 2020, at 4:36 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

The Dow Jones Industrial Average sank nearly 1,200 points Thursday, deepening a week long global market rout caused by worries that the coronavirus outbreak will wreak havoc on the global economy.

Bond prices soared again, sending the yield on the 10-year Treasury to another record low. When yields fall it's a sign that investors are feeling less confident about the strength of the economy going forward.

"People can demand things that feel safe for irrational amounts of time," said Katy Kaminski, chief research strategist at AlphaSimplex Group. "It doesn't matter, the fundamentals, when people are worried."

The latest losses extended a slide in stocks that has wiped out the solid gains the major indexes had posted early this year.

The S&P 500 is now 12% below the all-time high it set just a week ago. This is now the stock market’s worst week since October 2008, when Wall Street was mired in the financial crisis.

Investors came into 2020 feeling confident that the Federal Reserve would keep interest rates at low levels and the U.S.-China trade war posed less of a threat to company profits after the two sides reached a preliminary agreement in January. The virus outbreak has upended that rosy scenario as economists lower their expectations for economic growth and companies warn of a hit to their business.

The S&P 500 index's sharp decline from its last record high puts it in what market watchers call a “correction,” a normal phenomenon that analysts have said was long overdue in this bull market, which is the longest in history.

Microsoft warned that the virus outbreak had interrupted its supply lines and would hurt its financial performance, following a similar warning last week from Apple. The two stocks led another sell-off among technology companies. Energy stocks fell sharply as the price of oil dropped 3.4%.

“This is a market that’s being driven completely by fear,” said Elaine Stokes, portfolio manager at Loomis Sayles, with market movements following the classic characteristics of a fear trade: stocks are down, commodities are down and bonds are up.

Stokes said the swoon reminded her of the market’s reaction following the Sept. 11, 2001 terrorist attacks.

“Eventually we’re going to get to a place where this fear, it’s something that we get used to living with, the same way we got used to living with the threat of living with terrorism,” she said. “But right now, people don’t know how or when we’re going to get there, and what people do in that situation is to retrench."

The S&P 500 fell 137.63 points, or 4.4%, to 2,978.76, its biggest one-day drop since 2011.

The Dow fell 1,190.95 points, or 4.4%, to 25,766.64. The Nasdaq dropped 414.29 points, or 4.6%, to 8,566.48. The Russell 2000 index of smaller company stocks lost 54.89 points, or 3.5%, to 1,497.87.

The virus has now infected more than 82,000 people globally and is worrying governments with its rapid spread beyond the epicenter of China.

Japan will close schools nationwide to help control the spread of the new virus. Saudi Arabia banned foreign pilgrims from entering the kingdom to visit Islam’s holiest sites. Italy has become the center of the outbreak in Europe, with the spread threatening the financial and industrial centers of that nation.

At their heart, stock prices rise and fall with the profits that companies make. And Wall Street’s expectations for profit growth are sliding away. Apple and Microsoft, two of the world’s biggest companies, have already said their sales this quarter will feel the economic effects of the virus.

Goldman Sachs on Thursday said earnings for companies in the S&P 500 index might not grow at all this year, after predicting earlier that they would grow 5.5%. Strategist David Kostin also cut his growth forecast for earnings next year.

Besides a sharply weaker Chinese economy in the first quarter of this year, he sees lower demand for U.S. exporters, disruptions to supply chains and general uncertainty eating away at earnings growth.

Such cuts are even more impactful now because stocks are already trading at high levels relative to their earnings, raising the risk. Before the virus worries exploded, investors had been pushing stocks higher on expectations that strong profit growth was set to resume for companies.

The S&P 500 was recently trading at its most expensive level, relative to its expected earnings per share, since the dot-com bubble was deflating in 2002, according to FactSet. If profit growth doesn’t ramp up this year, that makes a highly priced stock market even more vulnerable.

Goldman Sach’s Kostin said the S&P 500 could fall to 2,900 in the near term, which would be a nearly 7% drop from Wednesday’s close, before rebounding to 3,400 by the end of the year.

Traders are growing increasingly certain that the Federal Reserve will be forced to cut interest rates to protect the economy, and soon. They’re pricing in a better than two-in-three probability of a cut at the Fed’s next meeting in March. Just a day before, they were calling for only a one-in-three chance.

A handful of companies have managed to gain ground in the latest rout of stocks. Medical teleconferencing company Teladoc surged 15.7% and 3M, which counts surgical masks among its many products, rose 0.8%.

The market's sharp drop this week partly reflects increasing fears among many economists that the U.S. and global economies could take a bigger hit from the coronavirus than they previously thought.

Earlier assumptions that the impact would largely be contained in China and would temporarily disrupt manufacturing supply chains have been overtaken by concerns that as the virus spreads, more people in numerous countries will stay home, either voluntarily or under quarantine. Vacations could be canceled, restaurant meals skipped, and fewer shopping trips taken.

"A global recession is likely if COVID-19 becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea," said Mark Zandi, chief economist at Moody's Analytics.

The market rout will also likely weaken Americans' confidence in the economy, analysts say, even among those who don't own shares. Such volatility can worry people about their own companies and job security. In addition, Americans that do own stocks feel less wealthy. Both of those trends can combine to discourage consumer spending and slow growth.

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[bigdog]

Stocks sank again Friday after another wild day on Wall Street, extending a rout that handed the market its worst week since October 2008 at the height of the financial crisis.

The market clawed back much of its intraday losses in the last 15 minutes of trading as some buyers emerged, keeping the indexes from another steep plunge.

The Dow Jones Industrial Average swung back from an early slide of more than 1,000 points to close around 350 points lower. The S&P 500 fell 0.8% and is now down 13% since hitting a record high just 10 days ago. The Nasdaq reversed an early decline to finish flat.

The market's losses moderated somewhat after the Federal Reserve released a statement saying it stood ready to help the economy if needed. Investors increasingly expect the Fed to cut rates at its next policy meeting in mid-March.

Global financial markets have been rattled by the virus outbreak that has been shutting down industrial centers, emptying shops and severely crimping travel all over the world. More companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales. Governments are taking increasingly drastic measures as they scramble to contain the virus.

The rout has knocked every major index into what market watchers call a “correction,” or a fall of 10% or more from a peak. The last time that occurred was in late 2018, as a tariff war with China was escalating. Market watchers have said for months that stocks were overpriced and long overdue for another pullback.

The Dow fell 357.28 points, or 1.4%, to 25,409.36. The S&P 500 slid 24.54 points, or 0.8%, to 2,954.22. The Nasdaq rose 0.89 points, or less than 0.1%, to 8,567.37. The Russell 2000 index of smaller company stocks lost 21.40 points, or 1.4%, to 1,476.47.

3 month chart comparison

https://www.usnews.com/news/busines...pen-sharply-lower-on-wall-street-dow-sinks-18

Wall Street Has Worst Week Since 2008 as S&P 500 Drops 11.5%
Stocks sank again after another wild day, extending a rout that left the market with its worst week since October 2008.
By Associated Press, Wire Service Content Feb. 28, 2020, at 5:08 p.m.

By ALEX VEIGA and DAMIAN J. TROISE, AP Business Writers

Stocks sank again Friday after another wild day on Wall Street, extending a rout that handed the market its worst week since October 2008 at the height of the financial crisis.

The market clawed back much of its intraday losses in the last 15 minutes of trading as some buyers emerged, keeping the indexes from another steep plunge.

The Dow Jones Industrial Average swung back from an early slide of more than 1,000 points to close around 350 points lower. The S&P 500 fell 0.8% and is now down 13% since hitting a record high just 10 days ago. The Nasdaq reversed an early decline to finish flat.

The market's losses moderated somewhat after the Federal Reserve released a statement saying it stood ready to help the economy if needed. Investors increasingly expect the Fed to cut rates at its next policy meeting in mid-March.

Global financial markets have been rattled by the virus outbreak that has been shutting down industrial centers, emptying shops and severely crimping travel all over the world. More companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales. Governments are taking increasingly drastic measures as they scramble to contain the virus.

The rout has knocked every major index into what market watchers call a “correction,” or a fall of 10% or more from a peak. The last time that occurred was in late 2018, as a tariff war with China was escalating. Market watchers have said for months that stocks were overpriced and long overdue for another pullback.

Bond prices soared again as investors sought safety and became more pessimistic about the economy's prospects. That pushed yields to more record lows. The yield on the 10-year Treasury note fell sharply, to 1.14% from 1.30% late Thursday. That's a record low, according to TradeWeb. That yield is a benchmark for home mortgages and many other kinds of loans.

Crude oil prices sank 4.9% over worries that global travel and shipping will be severely crimped and hurt demand for energy. The price of benchmark U.S. crude has now fallen 15% this week.

“All this says to us is that there are still a lot of worries in the market,” said Gene Goldman, chief investment officer at Cetera Financial Group. “We need the Fed to come out and say basically guys, we got your back.”

Traders have been growing more certain that the Federal Reserve will be forced to cut interest rates to protect the economy, and soon. Goldman said the Fed’s current lack of action amounts to a tightening of rates compared with other nations and their actions to offset the impact of the coronavirus.

Investors now widely expect the Fed to cut interest rates by a half-point at its meeting that winds up March 18. According to data from the Chicago Mercantile Exchange's Fedwatch tool, the expectations for a half-point cut jumped from 47% just before the Fed's statement was released to 60% by the close of trading.

The damage from a week of almost relentless selling was eye-popping: The Dow Jones Industrial Average fell 3,583 points, or 12.4%. Microsoft and Apple, the two most valuable companies in the S&P 500, lost a combined $300 billion. In a sign of the severity of the concern about the possible economic blow, the price of oil sank 16%.

The latest losses have wiped out the S&P 500's gains going back to October. The benchmark index is still up 6.1% over the past 12 months, not including dividends.

The sell-off follows months of uncertainty about the spread of the virus, which hit China in December and shut down large swaths of that nation by January. China is still the hardest hit country and has most of the 83,000 cases worldwide and related deaths.

Uncertainty turned into fear as the virus started jumping to places outside of the epicenter and dashed hopes for containment.

"Fear is a stronger emotion than hope," said Ann Miletti, head of active equity at Wells Fargo Asset Management. "This is what we’re seeing today and this week and over the past seven days.

Airlines have suffered some of the worst hits as flight routes are cancelled, along with travel plans. Big names like Apple and Budweiser brewer AB InBev are part of a growing list of companies expecting financial pain from the virus. Dell and athletic-wear company Columbia Sportswear are the latest companies expecting an impact to their bottom lines.

Cruise operators have also been hard hit, with shares sinking 30% or more as shipboard infections rose. But those companies were having a far better day Friday, with some on Wall Street believing that the sell-off was overdone. Shares of Royal Caribbean Cruises rose 4.4%, while Norwegian Cruise Line Holdings gained 7.3%. Carnival's shares climbed 5.1%.

A big concern investors have is that the stock market rout could have a psychological effect on consumers, making them reluctant to spend money and go to crowded places like stores, restaurants and movie theaters.

The late-2018 stock market plunge, for instance, derailed holiday sales that year. Now, analysts are worried that the latest stock swoon could cause consumer spending — which makes up some 70% of the economy and has played a huge role in keeping the U.S. expansion going — to contract again.

Craig Johnson, president of Customer Growth Partners, a consumer consultancy, says he had expected annual retail sales to be up 4.1%, but he now says it could increase just 2.2% if the impact of the new virus in China persists beyond April.

‘’This is a moving target right now,”’ he said. ‘’There is a lot of uncertainty.’’

Many companies face the prospect of crimped financial results with their stocks already trading at high levels relative to their earnings. Before the virus worries exploded, investors had been pushing stocks higher on expectations that strong profit growth was set to resume for companies after declining for most of 2019.

Nearly 60 nations representing every continent, except Antarctica, have confirmed cases. The virus outbreak has prompted a wide range of reactions from nations hoping to contain its spread and economic impact.

The Geneva auto show was cancelled as Swiss authorities banned large events of more than 1,000 people. Parts of Italy’s northern industrial and financial center remain under quarantine.

MARKET ROUNDUP:

The Dow fell 357.28 points, or 1.4%, to 25,409.36. The S&P 500 slid 24.54 points, or 0.8%, to 2,954.22. The Nasdaq rose 0.89 points, or less than 0.1%, to 8,567.37. The Russell 2000 index of smaller company stocks lost 21.40 points, or 1.4%, to 1,476.47.

In commodities trading, benchmark crude oil fell $2.33 to settle at $44.76 a barrel. Brent crude oil, the international standard, dropped $1.66 to close at $50.52 a barrel. Wholesale gasoline fell 2 cents to $1.39 per gallon. Heating oil was unchanged at $1.49 per gallon. Natural gas fell 7 cents to $1.68 per 1,000 cubic feet.

Gold fell $75.90 to $1,564.10 per ounce, silver fell $1.27 cents to $16.39 per ounce and copper fell 2 cents to $2.55 per pound.

The dollar fell to 108.42 Japanese yen from 109.95 yen on Thursday. The euro weakened to $1.0967 from $1.0987.

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[Dona Ferentes]

Sorry to steal your thunder, perro grande

The US central bank boss signalled he's open to cutting interest rates. The initial reaction was muted. Then, with the closing bell in sight, the Dow pared its losses by 600 points to end the day down 357 points or 1.4 per cent. It lost 12.4pc on the week.

Big ouch. Significant ouch.

 

[bigdog]

The S&P/ASX 200 index looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is poised to tumble 0.6% or 40 points at the open.

 

[bigdog]

The Dow Jones Industrial Average soared nearly 1,300 points, or 5%, Monday as stocks roared back from a seven-day rout on hopes that central banks will take action to shield the global economy from the effects of the coronavirus outbreak.

The huge gains clawed back some of the ground lost in a massive sell-off that gave stocks their worst week since the financial crisis of 2008.

Technology companies led the broad gains, which gave the Dow its biggest-ever point gain and biggest percentage increase since March 2009. The S&P 500 index jumped 4.6%, its best day since December 2018.

European benchmarks were mostly higher, and Asian markets rose broadly.

The Dow jumped 1,293.96 points, or 5.1%, to 26,703.32. The S&P 500 index gained 136.01 points, or 4.6%, to 3,090.23. The Nasdaq added 384.80 points, or 4.5%, to 8,952.16. The Russell 2000 index of smaller company stocks picked up 42.06 points, or 2.9%, to 1,518.49. Even with Monday's big rally, the major U.S. indexes remain in the red for the year.

The S&P/ASX 200 index looks set to open the day lower on Tuesday despite a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to fall 0.6% or 39 points at the open.

https://www.usnews.com/news/busines...-higher-on-wall-street-following-a-7-day-rout

Dow Surges 5% on Hopes for Central Bank Help on the Economy
The Dow Jones Industrial Average surged nearly 1,300 points, or 5%, on hopes that central banks will take action to shelter the global economy from the effects of the coronavirus outbreak.
By Associated Press, Wire Service Content March 2, 2020, at 5:00 p.m.

ALEX VEIGA, AP Business Writer

The Dow Jones Industrial Average soared nearly 1,300 points, or 5%, Monday as stocks roared back from a seven-day rout on hopes that central banks will take action to shield the global economy from the effects of the coronavirus outbreak.

The huge gains clawed back some of the ground lost in a massive sell-off that gave stocks their worst week since the financial crisis of 2008.

Technology companies led the broad gains, which gave the Dow its biggest-ever point gain and biggest percentage increase since March 2009. The S&P 500 index jumped 4.6%, its best day since December 2018.

European benchmarks were mostly higher, and Asian markets rose broadly.

Bond prices fell, pushing yields higher after having touched another record low earlier in the day. The yield on the 10-year Treasury note rose to 1.15% from 1.12% late Friday.

The virus outbreak that began in central China has been shutting down industrial centers, emptying shops and severely crimping travel all over the world. More companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales.

Investors are increasingly anticipating that the Federal Reserve and other major central banks around the world will lower interest rates or take other steps to shield the global economy from the effects of the outbreak.

“Investors have convinced themselves that global central banks will likely be even more accommodative in order to short-circuit any psychological damage, ” said Sam Stovall, chief investment strategist at CFRA.

Bill Nelson, chief economist at the Bank Policy Institute and a former Fed economist, said the Fed and other major central banks, possibly including China's, could announce coordinated rate cuts by Wednesday morning. The cut would at least be a half-point and perhaps even three-quarters, he said.

“The only way to get a positive market reaction is to deliver more than expected,” he said.

The International Monetary Fund and World Bank announced simultaneously Monday that they are ready to help countries affected by the coronavirus through their emergency lending programs and other tools.

"We will use our available instruments to the fullest extent possible," the IMF managing director, Kristalina Georgieva, and World Bank President David Malpass said in a joint statement. "International cooperation is essential."

The statement echoed similar promises to act if necessary from the Federal Reserve on Friday and the Bank of Japan over the weekend. Traders have priced in a 100% probability that the Fed will cut rates by a half-percentage point during or before its March meeting.

One encouraging sign to traders is that the finance ministers and central bank leaders of the Group of Seven major industrial countries will hold a conference call on Tuesday to discuss an economic response to the viral outbreak.

U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell will lead the call. The group includes Japan, Germany, Britain, and France, among others. The G-7 often issues statements pledging cooperation amid global economic turbulence.

There were signs that the economic impact was continuing to mount. A measure of China's manufacturing output plunged last month to its lowest level on record, as the viral outbreak closed factories and disrupted supply chains.

And the Organization for Economic Development, a research organization made up of mostly advanced economies, said Monday that the viral outbreak “presents the global economy with its greatest danger since the financial crisis" in 2008.

The OECD cut its world growth forecast and said that even if there are only limited outbreaks outside China, the global economy will grow just 2.4% this year, the weakest since the crisis. That forecast matches several private estimates.

If other countries are hit with outbreaks similar to China's, growth could fall as low as 1.5%, the OECD said.

Separately, economists at Goldman Sachs slashed their forecasts for U.S. growth to just 0.9% in the first quarter and to zero for the April-June quarter.

For investors, the great amount of uncertainty over how consumer behavior and spending will be affected has been unsettling.

“It’s not a typical economic blow," said Bill Strazzullo of Bell Curve Trading. "What if major cities are on some kind of a lockdown? What will that do to restaurants, entertainment, shopping, travel? It's almost impossible to game this out.”

Last week's rout knocked every major index into what market watchers call a "correction," or a fall of 10% or more from a peak. Market watchers have said for months that stocks were overpriced and long overdue for another pullback.

The last time the market had a drop of that size was in late 2018, when the trade war with China was escalating and investors were worried about rising interest rates. With Monday's surge, the S&P 500 is now 8.7% below the record high it reached February 19.

The stock surge notwithstanding, the fact that investors are holding onto Treasurys at near record-low yields shows they are still worried.

“The fear factor is still very high,” said Kirk Hartman, president of Wells Fargo Asset Management. “Do you really want to own a 10-year Treasury at 1 percent? I don’t think so. I think this is a classic market in crisis.”

Shoppers stocking up on everyday goods as fear over the coronavirus' spread hits consumers helped lift shares in household goods companies. Costco jumped 10%. Walmart rose 7.6%. Procter & Gamble gained 5.6%.

Technology and health care stocks accounted for a big share of the gains. Apple climbed 9.3% and Gilead Sciences rose 8.7%. The biotechnology company has been testing one of its drugs as a potential treatment for the coronavirus.

Stimulus hopes helped shore up markets in Asia earlier. The Nikkei 225 index closed 1% higher, while the Shanghai Composite index rose 3.2%.

China has seen most of the 90,000 or so virus cases worldwide. In the United States, authorities have counted at least 80 cases of the virus, six fatal, and concern was driving some to wipe store shelves clean of bottled water, hand sanitizer and other necessities. Both deaths were men with existing health problems who were hospitalized in Washington state.

MARKET ROUNDUP:

The Dow jumped 1,293.96 points, or 5.1%, to 26,703.32. The S&P 500 index gained 136.01 points, or 4.6%, to 3,090.23. The Nasdaq added 384.80 points, or 4.5%, to 8,952.16. The Russell 2000 index of smaller company stocks picked up 42.06 points, or 2.9%, to 1,518.49. Even with Monday's big rally, the major U.S. indexes remain in the red for the year.

Oil prices have also slumped as traders priced in the prospect of lower demand as a result of the virus outbreak. Last week, oil prices tanked by around 15%. On Monday, benchmark U.S. crude rose $1.99, or 4.4%, to settle at $46.75 a barrel. Brent, the international standard, gained $2.23 to close at $51.90.

Wholesale gasoline rose 57 cents to $1.54 per gallon. Heating oil climbed 5 cents to $1.53 per gallon. Natural gas rose 7 cents to $1.76 per 1,000 cubic feet.

Gold rose $28.20 to $1,592.30 per ounce, silver rose 29 cents to $16.68 per ounce and copper rose 5 cents to $2.60 per pound.

The dollar fell to 107.87 Japanese yen from 108.42 yen on Friday. The euro strengthened to $1.1163 from $1.1028.

 

[bigdog]

Fear and uncertainty continue to control Wall Street, and stocks fell sharply Tuesday after an emergency interest-rate cut by the Federal Reserve failed to reassure markets wracked by worries that a fast-spreading virus will cause a recession.

The Dow Jones Industrial average sank 785 points, or 2.9%. It had surged 5% a day earlier on hopes for a broader set of stimulus measures.

While the cut gave some investors exactly what they had been asking for, Federal Reserve Chairman Jerome Powell acknowledged that the ultimate solution to the virus challenge will have to come from health experts and others, not central banks. Some traders are also questioning whether more aid is on the way to stabilize the market, while others called the Fed's move premature to begin with. For more than a few, the Fed's steepest rate cut since 2008 recalled the dark days of the financial crisis and only added to the dread.

Through it all, markets are still faced with the same quandary that has sent stock prices tumbling 11% since they set a record just two weeks ago: No one knows how far the virus will ultimately spread before authorities can get it under control, and by how much companies' profits will be shorn because of it.

That uncertainty led to jagged trading across markets on Tuesday. Stocks rallied briefly in the morning following the Fed's surprise move, but it took just 15 minutes for the gains to evaporate. The yield on the 10-year Treasury fell below 1% for the first time in history as investors ratcheted back expectations for the economy and inflation. A gauge measuring traders’ fear of upcoming swings for stocks jerked wildly up and down through the day.

After popping to a 1.5% gain shortly after the Fed's announcement, the S&P 500 swung between modest gains and losses for about an hour before turning decisively lower. The index ended the day down 86.86 points, or 2.8%, at 3,003.37. It pared a loss that reached 3.7% in the mid-afternoon, and it marks the eighth drop in the last nine days for the index.

The S&P 500 fell 86.86 points, or 2.8%, at 3,003.37. The Dow Jones Industrial Average lost 785.91 points, or 2.9%, to 25,917.41, and the Nasdaq fell 268.07, or 3%, to 8,684.09.

Gold up +45.80

The S&P/ASX 200 index looks set to give back yesterday’s gains and more after Wall Street tumbled lower overnight. According to the latest SPI futures, the ASX 200 is poised to drop 131 points or 2.1% lower at the open.

https://www.usnews.com/news/busines...pen-lower-after-g-7-holds-off-on-new-stimulus

Dow Sinks 2.9% After Rate Cut Fails to Stem Market's Dread
The Dow Jones Industrial Average dropped 785 points and bond prices surged after an emergency interest-rate cut by the Federal Reserve failed to reassure markets racked by worries that a fast-spreading virus outbreak could lead to a recession.
By Associated Press, Wire Service Content March 3, 2020, at 4:19 p.m.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Fear and uncertainty continue to control Wall Street, and stocks fell sharply Tuesday after an emergency interest-rate cut by the Federal Reserve failed to reassure markets wracked by worries that a fast-spreading virus will cause a recession.

The Dow Jones Industrial average sank 785 points, or 2.9%. It had surged 5% a day earlier on hopes for a broader set of stimulus measures.

While the cut gave some investors exactly what they had been asking for, Federal Reserve Chairman Jerome Powell acknowledged that the ultimate solution to the virus challenge will have to come from health experts and others, not central banks. Some traders are also questioning whether more aid is on the way to stabilize the market, while others called the Fed's move premature to begin with. For more than a few, the Fed's steepest rate cut since 2008 recalled the dark days of the financial crisis and only added to the dread.

Through it all, markets are still faced with the same quandary that has sent stock prices tumbling 11% since they set a record just two weeks ago: No one knows how far the virus will ultimately spread before authorities can get it under control, and by how much companies' profits will be shorn because of it.

That uncertainty led to jagged trading across markets on Tuesday. Stocks rallied briefly in the morning following the Fed's surprise move, but it took just 15 minutes for the gains to evaporate. The yield on the 10-year Treasury fell below 1% for the first time in history as investors ratcheted back expectations for the economy and inflation. A gauge measuring traders’ fear of upcoming swings for stocks jerked wildly up and down through the day.

After popping to a 1.5% gain shortly after the Fed's announcement, the S&P 500 swung between modest gains and losses for about an hour before turning decisively lower. The index ended the day down 86.86 points, or 2.8%, at 3,003.37. It pared a loss that reached 3.7% in the mid-afternoon, and it marks the eighth drop in the last nine days for the index.

The Fed has a long history of coming to the market's rescue with lower rates and other stimulus, which has helped this bull market in U.S. stocks become the longest on record. Some analysts said the Fed's latest cut could provide some more confidence.

“Confidence in markets is crucial,” said Quincy Krosby, chief market strategist at Prudential Financial. “Without confidence, you don’t have a market.”

The Dow Jones Industrial Average had jumped Monday to its best day in more than a decade on rising anticipation for aid from the Fed and other central banks. Even before Tuesday's announcement, traders were convinced that the Fed would cut rates by half a percentage point on March 18 at its next meeting.

But doubts are high about whether the medicine provided by central banks can be as effective this time around. Lower rates can encourage shoppers and businesses to borrow and spend more, but they can't reopen factories that have been shut or recall workers out due to quarantines.

After the Fed’s announcement, Powell acknowledged that central banks can't solve the health crisis. But he said the Fed recognizes the fast spread of the virus is a risk for the economy, and he cited concerns from the travel and hotel industries. Powell said that since last week, when several Fed officials had said they saw no urgent need to cut rates, “we have seen a broader spread of the virus."

The high stakes pushed the Fed to cut rates outside of a regularly scheduled meeting for the first time since the 2008 financial crisis, when investors were considering a complete meltdown of the world's financial system as possible if not likely. That in itself may have spooked the market, as some investors wondered if the Fed saw things as worse than they were led to believe.

“I don’t believe that market participants woke up this morning thinking we were facing a crisis similar to the global financial crisis," said Kristina Hooper, chief global market strategist at Invesco. "But that’s what the Fed’s actions suggested to some.”

She said investors will likely have mixed emotions about the move for days.

Some economists called the Fed's move premature, given that U.S. economic data has yet to show a sharp drop due to the virus.

"The nature of today's announcement could send the wrong signal to market participants, including individual investors who are concerned with recent market volatility," said Roger Aliaga-Diaz, chief economist of the Americas at Vanguard.

Markets are likely to remain shaky until investors get a sense of what the worst-case scenario really is in this virus outbreak. Markets have been on edge for nearly two weeks, as the virus spreads beyond China and companies across continents and industries say they expect it to hit their profits.

Payments processor Visa on Tuesday joined the lengthening list of companies warning investors. It said its quarterly revenue will be weaker than earlier predicted because of a drop-off in travel-related spending on cards.

"To get a floor on the markets, realistically, what we need to see is not so much a cut in the number of new coronavirus cases, but at least a slowdown in the acceleration," said Salvatore Bruno, chief investment officer for IndexIQ. "Up until that time, we're likely to see a lot of volatility."

Worldwide, more than 92,000 people have been sickened, and over 3,100 have died. The number of countries hit by the virus has reached at least 70, with Ukraine and Morocco reporting their first cases.

The topsy-turvy Tuesday got off to a slow trading start in the United States. Earlier in the day, the Group of Seven major industrialized countries pledged support for the global economy, but they stopped short of announcing any specific new measures. Disappointment in the lack of action helped push U.S. stocks lower at the opening of trading, before the Fed surprised markets with its announcement of the steep, half-point rate cut at 10 a.m. Eastern time.

Investors are still speculating whether other central banks will join and cut rates and offer stimulus in a coordinated effort around the world. Before the Fed made its move, the Reserve Bank of Australia cut its key interest rate to a record low 0.5%.

U.S. markets have been hit hard by fear over the virus’ impact. Monday's surge for stocks on hopes that central banks will come to the rescue followed a broad sell-off last week that erased gains for 2020 and sent indexes into what market watchers call a "correction," or a fall of 10% or more from a peak. Last week was the worst for the S&P 500 since the financial crisis.

MARKET ROUNDUP:

The S&P 500 fell 86.86 points, or 2.8%, at 3,003.37. The Dow Jones Industrial Average lost 785.91 points, or 2.9%, to 25,917.41, and the Nasdaq fell 268.07, or 3%, to 8,684.09.

European stock markets were broadly higher, with the German DAX returning 1.1%, the French CAC 40 up 1.1% and the FTSE 100 up 1%. In Asia, Japan's Nikkei 225 fell 1.2%, South Korea’s Kospi rose 0.6%, and stocks in Shanghai added 0.7%.

Bond yields swung following the Fed's announcement. The yield on the 10-year Treasury slumped to 1.01% from 1.08% late Monday after earlier dropping below the 1% threshold for the first time. The 10-year yield tends to fall when expectations are for weak economic growth and inflation. Shorter-term yields, which move more on Fed actions, had even more dramatic drops. The two-year Treasury yield sank to 0.71% from 0.81%.

 

[bigdog]

The Dow Jones Industrial Average soared more than 1,100 points, or 4.5%, Wednesday as governments and central banks around the globe took more aggressive measures to fight the virus outbreak and its effects on the economy.

The gains more than recouped the market's big losses from a day earlier as Wall Street's wild, virus-fueled swings extend into a third week.

Stocks rose sharply from the get-go, led by big gains for health care stocks after Joe Biden solidified his contender status for the Democratic presidential nomination. Investors see him as a more business-friendly alternative to Bernie Sanders.

The rally's momentum accelerated around midday after House and Senate leadership reached a deal on a bipartisan $8.3 billion bill to battle the coronavirus outbreak. The measure's funds would go toward research into a vaccine, improved tests and drugs to treat infected people.

Investors are also anticipating other central banks will follow up on the Federal Reserve’s surprise move Tuesday to slash interest rates by half a percentage point in hopes of protecting the economy from the economic fallout of a fast-spreading virus. Canada's central bank cut rates on Wednesday, also by half a percentage point and citing the virus' effect.

The S&P 500 rose 126.75 points, or 4.2%, to 3,130.12. The benchmark index has had five days in the last two weeks where it swung by more than 3%. In all of last year, it had just one.

The Dow gained 1,173.45 points to 27,090.86. The Nasdaq climbed 334 points, or 3.8%, to 9,018.09. The index, which is heavily weighted with technology companies, now has a slight gain for the year.

The Russell 2000 index of smaller company stocks rose 45.11 points, or 3%, to 1,531.20.

The S&P/ASX 200 index looks set to rebound strongly on Thursday after a very positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to jump 76 points or 1.2% at the open

New ASX Tech added to indexs

https://www.usnews.com/news/busines...ls-surge-500-points-extending-volatile-streak

Stocks Soar on Plans for More Stimulus Measures, Biden Wins
The Dow Jones Industrial Average soared more than 1,100 points, or 4.5%, Wednesday as governments and central banks around the globe took more aggressive measures to fight the virus outbreak and its effects on the economy.
By Associated Press, Wire Service Content March 4, 2020, at 5:10 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

The Dow Jones Industrial Average soared more than 1,100 points, or 4.5%, Wednesday as governments and central banks around the globe took more aggressive measures to fight the virus outbreak and its effects on the economy.

The gains more than recouped the market's big losses from a day earlier as Wall Street's wild, virus-fueled swings extend into a third week.

Stocks rose sharply from the get-go, led by big gains for health care stocks after Joe Biden solidified his contender status for the Democratic presidential nomination. Investors see him as a more business-friendly alternative to Bernie Sanders.

The rally's momentum accelerated around midday after House and Senate leadership reached a deal on a bipartisan $8.3 billion bill to battle the coronavirus outbreak. The measure's funds would go toward research into a vaccine, improved tests and drugs to treat infected people.

Investors are also anticipating other central banks will follow up on the Federal Reserve’s surprise move Tuesday to slash interest rates by half a percentage point in hopes of protecting the economy from the economic fallout of a fast-spreading virus. Canada's central bank cut rates on Wednesday, also by half a percentage point and citing the virus' effect.

“The fact that you get an $8 billion bill, that's money that will be spent, hopefully, on something that really will have an impact on mitigating the effects on the economy,” said Tom Martin, senior portfolio manager with Globalt Investments.

Some measures of fear in the market eased. Treasury yields rose but were still near record lows in a sign that the bond market remains concerned about the economic pain possible from the fast-spreading virus. Companies around the world are already saying the virus is sapping away earnings due to supply chain disruptions and weaker sales, with General Electric becoming the latest to warn its investors.

Even though many investors say they know lower interest rates will not halt the spread of the virus, they want to see central banks and other authorities do what they can to lessen the damage. The S&P 500 sank 2.8% on Tuesday after a brief relief rally triggered by the Fed’s rate cut fizzled.

“Monetary policy can only take us so far, but at least it’s a step,” said Jack Ablin, chief investment officer at Cresset. "Investors will take comfort in coordinated central bank action. I take comfort in knowing this isn’t the plague, we’ll eventually get through this.”

The Bank of England has a meeting on March 26 on interest rates. The European Central Bank and others around the world have already cut rates below zero, meanwhile, which limits their monetary policy firepower. But economists say they could make other moves, such as freeing up banks to lend more.

An indicator of fear in the market, which measures how much traders are paying to protect themselves from future swings for the S&P 500, sank 14.1%.

Health care stocks in the S&P 500 jumped 5.8% for the biggest gain among the 11 sectors that make up the index. UnitedHealth Group jumped 10.7%, Cigna climbed 10.7%. and Anthem soared 15.6%, the biggest gainer in the S&P 500.

A Biden nomination would be more welcome on Wall Street than a nod for Sanders, who is campaigning on a proposal to enact “Medicare For All.”

“It’s probably a trend toward more of the same in terms of the market and the regulatory and business environment,” said Ablin. “I don’t think investors are looking for revolution.”

Data reports released Wednesday painted a U.S. economy that was still holding up, at least as of last month. The country's services industries grew at a faster rate last month than economists expected, according to a report from the Institute for Supply Management. Hiring at private employers was stronger than expected in February, according to a report from payroll processor ADP, though slower than January's pace. That could be an encouraging sign for the comprehensive jobs report coming from the government at the end of the week.

Markets have been on edge for two weeks, with the S&P 500 down 7.6% from its record on Feb. 19, amid worries about how much economic damage the coronavirus will do. The big swings in recent days will likely continue until investors get a sense of what the worst-case scenario really is in the virus outbreak. They need to see the number of new infections at least slow its acceleration, analysts say.

Indexes jumped on Monday, and the Dow had its best day in more than a decade on rising anticipation for coordinated support from the Fed and other central banks. That followed a dismal week that erased gains for 2020.

MARKET ROUNDUP:

The S&P 500 rose 126.75 points, or 4.2%, to 3,130.12. The benchmark index has had five days in the last two weeks where it swung by more than 3%. In all of last year, it had just one.

The Dow gained 1,173.45 points to 27,090.86. The Nasdaq climbed 334 points, or 3.8%, to 9,018.09. The index, which is heavily weighted with technology companies, now has a slight gain for the year.

The Russell 2000 index of smaller company stocks rose 45.11 points, or 3%, to 1,531.20.

The tide also rose for stocks around the world on Wednesday. In Europe, Germany's DAX climbed 1.2%, the French CAC 40 rose 1.3% and the FTSE 100 in London gained 1.4%. In Asia, South Korea's Kospi jumped 2.2%. Japan's Nikkei 225 inched up 0.1%, the Hang Seng in Hong Kong slipped 0.2% and stocks in Shanghai rose 0.6%.

The yield on the 10-year Treasury rose to 1.06% from 1.01% late Tuesday after earlier dipping back below 1%. Yields tend to rise with expectations for the economy and inflation. Shorter-term yields fell as traders increased bets for more rate cuts from the Fed later this year. The two-year Treasury yield fell to 0.69% from 0.71%.

In commodities trading, benchmark crude oil fell 40 cents to settle at $46.78 a barrel. Brent crude oil, the international standard, dropped 73 cents to close at $51.13 a barrel. Wholesale gasoline rose 3 cents to $1.56 per gallon. Heating oil was unchanged at $1.53 per gallon. Natural gas rose 3 cents to $1.83 per 1,000 cubic feet.

Gold fell $1.40 to $1,643 per ounce, silver rose 6 cents to $17.25 per ounce and copper rose 1 cent to $2.59 per pound.

The dollar rose to 107.33 Japanese yen from 107.24 yen on Tuesday. The euro weakened to $1.1139 from $1.1176.

 

[bigdog]

Fear dominated financial markets again on Thursday, and stocks fell sharply on worries about the fast-spreading virus outbreak. It's the latest shudder in Wall Street's most volatile week in more than eight years.

Major U.S. indexes lost roughly 3.5%, and Treasury yields touched more record lows in their latest yo-yo move. The slide nearly wiped out the surge stocks had ridden just a day earlier, which came in part on hopes that moves by authorities around the world could cushion the economic fallout. These vicious swings are likely to continue, as long as the number of new infections continues to accelerate, many analysts and professional investors say. Thursday was the fourth straight day where the S&P 500 moved at least 2%, the longest such stretch since the summer of 2011.

The growing understanding that the spread of infections — and resulting damage to the economy — may not slow anytime soon is pulling sharply on markets. That pull has taken turns this week with the increasingly worldwide push that governments and central banks are trying to give markets through spending plans and interest-rate cuts.

The yield on the 10-year Treasury note went as low as 0.901% for the first time in history, according to Tradeweb. Tumbling yields have brought the average rate on a 30-year fixed mortgage to a record low of 3.29%.

“It’s been a roller-coaster market in recent days for equity investors, and today we appear to be on the downward leg for that ride,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “What you need is time, and unfortunately that is still going to result in volatility.”

In China, where the number of new infections has been slowing drastically, stocks trading in Shanghai have rallied nearly 12% since hitting a bottom on Feb. 3. Factories there are gradually reopening, and a return to a sense of normal life may even be on the horizon following swift and severe actions by the government to corral the virus.

But elsewhere in the world, the mood is darker. There are about 17 times as many new infections outside China as in it, according to the World Health Organization.

The S&P 500 fell 106.18, or 3.4%, to 3,023.94. It's now 10.7% below the record high it set on Feb. 19. The Dow Jones Industrial Average slumped 969.58, or 3.6%, to 26,121.28, and the Nasdaq lost 279.49, or 3.1%, to 8,738.60.

Losses were widespread, and energy stocks in the S&P 500 dropped to their lowest level since March 2009, when they were emerging from the financial crisis.

The S&P/ASX 200 index looks set to give back yesterday’s gains and more on Friday. According to the latest SPI futures, the ASX 200 is poised to fall 134 points or 2.1% at the open.

DOW three month chart

New with Australian index's in middle:

New at bottom of table:

https://www.usnews.com/news/busines...ts-slide-again-on-enduring-concern-over-virus

Virus Fears Grip Markets Again; Stocks and Bond Yields Slide
Stocks and bond yields fell sharply Thursday as fears about fallout from the virus outbreak sent more shudders through markets.
By Associated Press, Wire Service Content March 5, 2020, at 4:44 p.m.

By STAN CHOE and DAMIAN J. TROISE, AP Business Writers

NEW YORK (AP) — Fear dominated financial markets again on Thursday, and stocks fell sharply on worries about the fast-spreading virus outbreak. It's the latest shudder in Wall Street's most volatile week in more than eight years.

Major U.S. indexes lost roughly 3.5%, and Treasury yields touched more record lows in their latest yo-yo move. The slide nearly wiped out the surge stocks had ridden just a day earlier, which came in part on hopes that moves by authorities around the world could cushion the economic fallout. These vicious swings are likely to continue, as long as the number of new infections continues to accelerate, many analysts and professional investors say. Thursday was the fourth straight day where the S&P 500 moved at least 2%, the longest such stretch since the summer of 2011.

The growing understanding that the spread of infections — and resulting damage to the economy — may not slow anytime soon is pulling sharply on markets. That pull has taken turns this week with the increasingly worldwide push that governments and central banks are trying to give markets through spending plans and interest-rate cuts.

The yield on the 10-year Treasury note went as low as 0.901% for the first time in history, according to Tradeweb. Tumbling yields have brought the average rate on a 30-year fixed mortgage to a record low of 3.29%.

“It’s been a roller-coaster market in recent days for equity investors, and today we appear to be on the downward leg for that ride,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “What you need is time, and unfortunately that is still going to result in volatility.”

In China, where the number of new infections has been slowing drastically, stocks trading in Shanghai have rallied nearly 12% since hitting a bottom on Feb. 3. Factories there are gradually reopening, and a return to a sense of normal life may even be on the horizon following swift and severe actions by the government to corral the virus.

But elsewhere in the world, the mood is darker. There are about 17 times as many new infections outside China as in it, according to the World Health Organization.

In the U.S., the death toll climbed to 11 due to the virus. California declared a statewide emergency, and Southwest Airlines warned its investors that it's seen a significant decline in demand in recent days.

The S&P 500 fell 106.18, or 3.4%, to 3,023.94. It's now 10.7% below the record high it set on Feb. 19. The Dow Jones Industrial Average slumped 969.58, or 3.6%, to 26,121.28, and the Nasdaq lost 279.49, or 3.1%, to 8,738.60.

Losses were widespread, and energy stocks in the S&P 500 dropped to their lowest level since March 2009, when they were emerging from the financial crisis.

“The Western world is now following some of China’s playbook, closing schools and declaring a state of emergency for example, but there is a sense that this is too little, too late," said Chris Beauchamp, chief market analyst at IG.

Travel-related companies continued to fall sharply on worries that frightened customers won't want to confine themselves in planes or boats with others. Royal Caribbean Cruises sank 16.3%, Carnival fell 14.1% and American Airlines Group lost 13.4%.

A growing list of companies is warning investors that the virus is hitting their sales and profits, and investors are left with a lot of uncertainty about just how much economic growth will be affected.

“We could probably drive a metaphorical truck between the upside and downside cases here,” said Jason Pride, chief investment officer for private wealth at Glenmede.

This week the S&P 500 has gone from a jump of 4.6% Monday, to a loss of 2.8%, and back to a rise of 4.2%. In normal times, a move of even 1% would be notable.

Asian stock markets started Thursday off higher, riding the wave of optimism and hope that sent the S&P 500 soaring on Wednesday. U.S. congressional leaders reached a deal on an $8.3 billion bill to battle the outbreak, which the Senate passed Thursday, and the Bank of Canada followed up on the Federal Reserve’s surprise cut to interest rates the day before with its own.

Some economists expect the European Central Bank to make some kind of move in hopes of supporting markets before its meeting on March 12.

Japan’s Nikkei 225 rose 1.1%, South Korea’s Kospi gained 1.3% and stocks in Shanghai jumped 2%.

But markets turned lower as trading moved to Europe. The French CAC 40 fell 1.9%, Germany’s DAX lost 1.5% and the FTSE 100 in London dropped 1.6%.

Several measures of fear in the market clenched tighter.

The yield on the 10-year Treasury sank to 0.91% from 0.99% late Wednesday. Gold climbed $25.00 to $1,668.00 per ounce as investors piled into investments seen as safe.

Benchmark U.S. crude lost 88 cents to settle at $45.90 per barrel. Brent crude, the international standard, fell $1.14 to $49.99 per barrel.

Silver rose 15 cents to $17.39 per ounce, and copper fell a penny to $2.57 per pound. Natural gas lost 6 cents to $1.77 per 1,000 cubic feet, heating oil fell 4 cents to $1.49 per gallon and wholesale gasoline lost 3 cents to $1.52 per gallon.

The dollar fell to 106.76 Japanese yen from 107.33 yen on Wednesday. The euro strengthened to $1.1190 from $1.1139.

 

[bigdog]

ALL RED DAY!

A dizzying, brutal week of trading dropped one last round of harrowing swings on investors Friday.

After skidding sharply through the day as fear pounded markets, steep drops for stocks and bond yields suddenly eased up in the last hour. By the end of trading, the S&P 500 had more than halved its loss for the day to 1.7% and even locked in a gain for the week.

It's the latest lurch in a wild ride that has sent stocks flipping between huge gains and losses — mostly losses the last two weeks. Investors are trying to guess how much economic damage the coronavirus will ultimately inflict, and they're shifting by the minute as the number of new infections piles up on on end and central banks and governments offer stimulus on the other.

All the uncertainty has left markets churning.

“It’s anyone’s guess at this point why it rallied into the close,” Adam Taback, chief investment officer for Wells Fargo Private Bank, said of the last hour of Friday's trading.

Earlier in the day, the S&P 500 had been down 4%. Even more alarming was another breathtaking drop in Treasury yields to record lows.

The S&P 500 fell 51.57, or 1.7%, to 2,972.37. It rose 0.6% for the week.

The Dow Jones Industrial Average lost 256.50, or 1%, to 25,864.78. The Nasdaq fell 162.98, or 1.9%, to 8,575.62.

The yield on the 10-year Treasury dropped to 0.77% from 0.92% late Thursday. It rallied from as low as 0.66% earlier in the day, according to Tradweb.

https://www.usnews.com/news/busines...en-sharply-lower-yields-drop-in-virus-worries

Bond Yields Sink, Stocks Fall as Investors Demand Safety
Stocks and bond yields fell further Friday, but they had been on pace for even sharper losses before easing up in the last hour of trading.
By Associated Press, Wire Service Content March 6, 2020, at 5:18 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — A dizzying, brutal week of trading dropped one last round of harrowing swings on investors Friday.

After skidding sharply through the day as fear pounded markets, steep drops for stocks and bond yields suddenly eased up in the last hour. By the end of trading, the S&P 500 had more than halved its loss for the day to 1.7% and even locked in a gain for the week.

It's the latest lurch in a wild ride that has sent stocks flipping between huge gains and losses — mostly losses the last two weeks. Investors are trying to guess how much economic damage the coronavirus will ultimately inflict, and they're shifting by the minute as the number of new infections piles up on on end and central banks and governments offer stimulus on the other.

All the uncertainty has left markets churning.

“It’s anyone’s guess at this point why it rallied into the close,” Adam Taback, chief investment officer for Wells Fargo Private Bank, said of the last hour of Friday's trading.

Earlier in the day, the S&P 500 had been down 4%. Even more alarming was another breathtaking drop in Treasury yields to record lows.

The 10-year Treasury yield falls when investors are worried about a weaker economy and inflation, and it sank below 0.70% at one point. Earlier this week, it had never in history been below 1%. It was at 1.90% at the start of the year, before the virus fears took hold.

Even a better-than-expected report on U.S. jobs wasn't enough to pull markets from the undertow. It's usually the most anticipated piece of economic data each month, but investors looked past February's solid hiring numbers because they came from before the new coronavirus was spreading quickly across the country.

“The bond market says the monster under the bed is much bigger and scarier than anyone expects right now,” said Ryan Detrick, senior market strategist at LPL Financial.

At the heart of the drops is the fear of the unknown. The virus usually causes only mild to moderate symptoms. But because it's new, experts aren't sure how far it will spread and how much damage it will ultimately do, both to health and to the economy.

The number of infections has topped 100,000 worldwide and businesses are reporting hits to their earnings. Danger for companies is coming from two sides. On the supply side, for example, Apple has said slowdowns in manufacturing iPhones in China will hurt its sales totals. On the demand side, an airline industry group says the outbreak could lose as much as $113 billion in revenue as people cancel trips.

Friday's drop for the S&P 500 was the latest swing in a remarkably turbulent week. It started off with a 4.6% jump on Monday, then fell 2.8%, rose 4.2% and fell 3.4%.

“At this point no one can really explain why the markets behave the way they do, and what may be next," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. "The only thing we can say is this high volatility is bad."

It was only two weeks ago that the S&P 500 set a record high, on Feb. 19. It’s lost 12.2% since then.

The bond market sounded the alarm on the effects of the virus long before the stock market, and yields fell further Friday.

The Fed surprised the market earlier this week by cutting interest rates half a percentage point. Investors expect other central banks around the world to follow suit in hopes of supporting markets.

At the same time, doubts are high about how much effect lower rates can have. Cheaper loans may encourage people and business to make big purchases, but they can't get workers back into factories if they're out on quarantine.

A boost for stocks came earlier this week after Congress agreed on an $8.3 billion bill to combat the coronavirus, which President Donald Trump signed Friday. But investors say a slowdown in the economy seems inevitable, and many analysts expect the market's sharp swings to continue as long as the number of new cases accelerates.

“As the market tries to find its bottom, it's going to go up and down, up and down, until it has a reason to steadily change in one direction or the other,” said Taback of Wells Fargo Private Bank.

MARKET ROUNDUP:

The S&P 500 fell 51.57, or 1.7%, to 2,972.37. It rose 0.6% for the week.

The Dow Jones Industrial Average lost 256.50, or 1%, to 25,864.78. The Nasdaq fell 162.98, or 1.9%, to 8,575.62.

The yield on the 10-year Treasury dropped to 0.77% from 0.92% late Thursday. It rallied from as low as 0.66% earlier in the day, according to Tradweb.

Benchmark U.S. crude tumbled $4.62, or 10.1%, to settle at $41.28 per barrel. It was the worst day for oil in more than five years. Brent crude, the international standard, dropped $4.72, or 9.4%, to $45.27.

In Europe, the French CAC 40 dropped 4.1%, and the German DAX lost 3.4%. The FTSE 100 in London fell 3.6%.

Japan's Nikkei 225 fell 2.7%, South Korea's Kospi lost 2.2% and stocks in Shanghai dropped 1.2%.

Gold rose $4.40 to settle at $1,672.40 per ounce. Silver fell 13 cents to $17.26 an ounce, and copper slipped 1 cent to $2.56 a pound.

Wholesale gasoline fell 13 cents to $1.39 a gallon, heating oil fell 10 cents to $1.39 a gallon and natural gas lost 6 cents to $1.71 per 1,000 cubic feet.

020

 

[bigdog]

ASX is trading today.

It looks set to be another bleak day of trade for the S&P/ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the week 93 points or 1.4% lower.

This follows a poor end to the week on Wall Street. Although they finished well off their lows, the Dow Jones fell 1%, the S&P 500 index dropped 1.7%, and the Nasdaq index sank 1.9% lower.

 

[moXJO]

Cheers big dog. I always appreciated your efforts on this thread.
Every time I need a quick market wrap, you have always had the goods. I swear I checked here last crash.

 

[bigdog]

The Dow Jones Industrial Average tumbled 7.8% Monday, its steepest drop since the financial crisis of 2008, as mounting alarm over the coronavirus combined with a crash in oil prices to send a shudder through world markets.

The staggering losses immediately raised fears that a recession might be on the way in the U.S. and that the record-breaking 11-year bull market on Wall Street may be coming to an abrupt end in a way no one even imagined just a few months ago.

The drop was so sharp that it triggered the first automatic halt in trading in more than two decades. European stock indexes likewise registered their heaviest losses since the darkest days of the 2008 meltdown and are now in a bear market.

Together, the sell-offs reflected growing fear over the potential global economic damage from the coronavirus, which has infected more than 110,000 people worldwide and killed about 4,000 while triggering factory shutdowns, travel bans, closings of schools and stores, and cancellations of conventions and celebrations big and small.

On Wall Street, the S&P 500 plunged 7.4% in the first few minutes after the opening bell before trading was halted by the market’s circuit breakers, first adopted after the crash of October 1987 and modified over the years to give investors a chance to catch their breath. The market-wide circuit breakers have been triggered only once before, in 1997.

After the 15-minute pause, the S&P trimmed its losses, but still closed 7.6% lower on the day. The Dow fell 2,013 points, or 7.8%, to 23,851.02. The Nasdaq gave up 7.3%.

The S&P 500 has fallen 18.9% from the record high it set on Feb. 19 and has lost $5.3 trillion in value during that time. U.S. stocks are now uncomfortably close to entering a bear market, defined as a drop of 20% from its peak.

Unfortunately, the S&P/ASX 200 index looks set to continue its slide on Tuesday. According to the latest SPI futures, the benchmark index is expected fall 244 points or 4.3% at the open this morning.

https://apnews.com/d69d338f530492125c92424b8ae3290d

Dow drops 7.8% as free-fall in oil, virus fears slam markets
By STAN CHOE and ALEX VEIGA

The Dow Jones Industrial Average tumbled 7.8% Monday, its steepest drop since the financial crisis of 2008, as mounting alarm over the coronavirus combined with a crash in oil prices to send a shudder through world markets.

The staggering losses immediately raised fears that a recession might be on the way in the U.S. and that the record-breaking 11-year bull market on Wall Street may be coming to an abrupt end in a way no one even imagined just a few months ago.

The drop was so sharp that it triggered the first automatic halt in trading in more than two decades. European stock indexes likewise registered their heaviest losses since the darkest days of the 2008 meltdown and are now in a bear market.

Together, the sell-offs reflected growing fear over the potential global economic damage from the coronavirus, which has infected more than 110,000 people worldwide and killed about 4,000 while triggering factory shutdowns, travel bans, closings of schools and stores, and cancellations of conventions and celebrations big and small.

“The market has had a crisis of confidence,” said Willie Delwiche, investment strategist at Baird.

The market slide came as Italy, the hardest-hit place in Europe, began enforcing a lockdown against 16 million people in the north, or one-quarter of the country’s population, and then announced that travel restrictions would be imposed nationwide. Premier Giuseppe Conte said all people will have to demonstrate a valid reason to travel beyond where they live.

The turmoil — marked by masked police officers and soldiers checking travelers’ documents amid restrictions that affected such daily activities as enjoying a espresso at a cafe or running to the grocery store — is expected to push Italy into recession and weigh on the European economy.

Elsewhere around the world, Ireland went so far as to cancel St. Patrick’s Day parades, and Israel ordered all visitors quarantined just weeks before Passover and Easter, one of the busiest travel periods of the year.

In the U.S., a cruise ship with a cluster of coronavirus cases that forced it to idle off the California coast for days arrived at the port of Oakland as officials prepared to start bringing passengers to military bases for quarantine or get them back to their home countries. The Grand Princess had more than 3,500 people aboard — 21 of them infected with the virus.

The escalating health crisis combined with another, intertwined development — plummeting oil prices — to drag down the market: The price of oil sank nearly 25% after Russia refused to roll back production in response to virus-depressed demand and Saudi Arabia signaled it will ramp up its own output.

While low oil prices can translate into cheaper gasoline, they wreak havoc on energy companies and countries that count on petroleum revenue, including the No. 1 producer, the United States.

“The fear today is: Are the bears correct in talking about a recession around the corner from this?” said Quincy Krosby, chief market strategist at Prudential Financial. “Is this just about now? Is this just about the oil? Is this just about the virus? Or are we looking at a recession around the corner because all of this?”

President Donald Trump was scheduled to meet with Treasury Secretary Steven Mnuchin, economic adviser Larry Kudlow and other aides when he returned to the White House about a range of economic actions he could take. He also invited Wall Street executives to the White House later in the week to discuss the economic fallout of the epidemic.

On Wall Street, the S&P 500 plunged 7.4% in the first few minutes after the opening bell before trading was halted by the market’s circuit breakers, first adopted after the crash of October 1987 and modified over the years to give investors a chance to catch their breath. The market-wide circuit breakers have been triggered only once before, in 1997.

After the 15-minute pause, the S&P trimmed its losses, but still closed 7.6% lower on the day. The Dow fell 2,013 points, or 7.8%, to 23,851.02. The Nasdaq gave up 7.3%.

The S&P 500 has fallen 18.9% from the record high it set on Feb. 19 and has lost $5.3 trillion in value during that time. U.S. stocks are now uncomfortably close to entering a bear market, defined as a drop of 20% from its peak.

Italy’s stock index plunged 11.2%. Britain, France and Germany were down between 7.7% and 8.4%

The interest rate, or yield, on U.S. Treasury bonds sank to all-time lows as investors looking for a safe place kept on sinking money into them, even as the return on their investment sank closer and closer to zero. The yield on the 10-year Treasury note plunged to 0.59%. Up until last week, it had never been below 1%.

The carnage in the energy sector was particularly bad. With benchmark U.S. crude dropping to under $32 a barrel, Marathon Oil, Apache Corp. and Diamondback Energy each sank more than 40%. Exxon Mobil had its worst day since 2008, while Chevron had its second-biggest drop ever.

“We knew it was going to be a hot day,” said John Spensieri, head of U.S. equity trading at Stifel. He said that the mood was “organized chaos” in the morning but that the trading halt achieved what it was supposed to by stopping the slide.

Despite the scary-looking red numbers flashing on CNBC and other financial news channels, some financial consultants advised ordinary investors to stick to their long-term plan and not panic.

Scott Heydt, a financial consultant at Heydt Air, said he expects the market will go back to normal, even though it could take a year or so. “It’s definitely not a comfortable time,” he said. “But people need to stop looking at their portfolios on their smartphones every two seconds if they don’t have a stomach for it.”

For most people, the coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia. The vast majority of people recover from the virus, as has already happened with about three-quarters of those infected in China.

In the U.S., the number of people infected climbed to around 600, with at least 26 deaths — at least 19 of them associated with a single Seattle-area nursing home.

While the crisis is easing in China, where the virus was first detected, fast-growing clusters have turned up in South Korea, Iran and Italy, and the caseload is growing in the United States.

After initially taking an optimistic view on the virus, hoping that it would remain mostly in China and cause just a short-term disruption, investors are realizing they probably underestimated the crisis badly.

Traders are increasing betting that the Federal Reserve will cut interest rates back to zero to do what it can to help the virus-weakened economy, perhaps as soon as next week. But doubts are rising about how effective lower rates can be this time. They can encourage people and companies to borrow, but they can’t restart factories, restaurants or theme parks shut down because people are quarantined.

The Fed has already cut its benchmark short-term rate to a range of 1% to 1.25%, leaving little room to cut more.

“Central banks are a bit player in the current crisis,” Ethan Harris, global economist at Bank of America, wrote in a research report.

The clamor is growing louder for help from authorities besides central banks.

Full Coverage: Virus Outbreak
“Today’s market action may bang some heads together and actually start thinking about the constructive measures the government can take,” said Jacob Kirkegaard, senior fellow at the Peterson Institution for International Economics.

Among other things, Kirkegaard said, the government should make sure all Americans get paid sick leave and health care coverage for virus-related ills.

 

[bigdog]

Stocks on Tuesday recouped most of their historic losses from the prior day as hopes rose, faded and then bloomed again on Wall Street that the U.S. government will try to cushion the economic pain from the coronavirus.


The day's moves were a microcosm of the severe swings that have dominated recent weeks, and market watchers say they are likely to continue until the number of infections stops accelerating. In the meantime, investors want to see a big, coordinated response from governments and central banks to shore up the virus-weakened economy.

The S&P 500 surged as much as 3.7% in the morning, only to see the gains evaporate by midday. The index then bounced up and down before turning decisively higher after President Donald Trump pitched his ideas for a break on payroll taxes and other economic relief to Senate Republicans.

By the end of trading, the S&P 500 was up 4.9%. It erased three-fifths of Monday’s loss, which was the sharpest since 2008, when global authorities banded together to rescue the economy from the financial crisis.

The volatility reflected the mood of a market just as preoccupied with the virus as the rest of the world. Since U.S. stocks set their record high just a few weeks ago, traders have crossed over from dismissing the economic pain created by COVID-19 — thinking it’s similar to the flu and could stay mostly contained in China — to being in thrall to it — worrying that it may cause a worldwide recession.

The S&P 500 rose 135.67 points, or 4.9%, to 2,882.23. The Dow Jones Industrial Average rose 1,167.14 points, or 4.9%, to 25,018.16, and the Nasdaq composite jumped 393.58, or 5%, to 8,344.25.

The recovery is pulling the stock market a bit further from the edge of a bear market, signified by a drop of 20% from a record. The S&P 500 is down 14.9% from its high. If it can rally back to that point, it would extend the longest-ever bull market, which began its climb after the market hit bottom on March 9, 2009.

The S&P/ASX 200 index is expected to push higher on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 0.25% or 15 points higher this morning.

https://www.usnews.com/news/busines...on-wall-street-following-worst-day-since-2008

Stocks Rebound From Big Losses on Hope for US Economic Aid
Stocks have recouped most of their historic losses on Wall Street.
By Associated Press, Wire Service Content March 10, 2020, at 5:42 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Stocks on Tuesday recouped most of their historic losses from the prior day as hopes rose, faded and then bloomed again on Wall Street that the U.S. government will try to cushion the economic pain from the coronavirus.

The day's moves were a microcosm of the severe swings that have dominated recent weeks, and market watchers say they are likely to continue until the number of infections stops accelerating. In the meantime, investors want to see a big, coordinated response from governments and central banks to shore up the virus-weakened economy.

The S&P 500 surged as much as 3.7% in the morning, only to see the gains evaporate by midday. The index then bounced up and down before turning decisively higher after President Donald Trump pitched his ideas for a break on payroll taxes and other economic relief to Senate Republicans.

By the end of trading, the S&P 500 was up 4.9%. It erased three-fifths of Monday’s loss, which was the sharpest since 2008, when global authorities banded together to rescue the economy from the financial crisis.

The volatility reflected the mood of a market just as preoccupied with the virus as the rest of the world. Since U.S. stocks set their record high just a few weeks ago, traders have crossed over from dismissing the economic pain created by COVID-19 — thinking it’s similar to the flu and could stay mostly contained in China — to being in thrall to it — worrying that it may cause a worldwide recession.

While they won't cure illnesses or get quarantined workers back into factories, spending and stimulus programs would put cash into the hands of households and businesses while health experts try to corral the virus. That could stave off or at least moderate a possible recession.

Investors saw glimmers of a coordinated response, which led to Tuesday’s optimism.

At a White House press briefing Monday night, Trump said his administration would be asking Congress to cut payroll taxes and pass other quick measures aimed at easing the impact of the coronavirus on workers.

In Japan, a task force set up by the prime minister approved a 430 billion yen ($4.1 billion) package Tuesday with support for small to medium-sized businesses.

But as markets waited on Tuesday for details about Trump’s plan, prices oscillated sharply.

After a meeting with major health insurers, Trump said the government is working with the cruise line industry, one of the hardest hit by the virus. That helped lift the market, which had earlier flipped to losses amid doubts that the government would announce anything soon.

The S&P 500 shuffled along with modest gains until rocketing higher in the last two hours of trading after Trump made his pitch for economic aid on Capitol Hill. Treasury Secretary Steven Mnuchin also met with House Speaker Nancy Pelosi, whose support would be needed for any deal in a deeply divided Congress. Mnuchin called the meeting productive.

“I would expect the authorities to pull out all the stops to reduce uncertainty," said Alec Young, managing director of global markets research at FTSE Russell. “This may be their one opportunity to do that.”

Perhaps the most notable move in markets Tuesday was that Treasury yields pushed higher. The bond market rang warning bells about the virus long before the stock market, and a rise in yields is a sign that fear has receded a bit.

The 10-year Treasury yield rose to 0.79% from 0.49% late Monday. A week ago, it had never been below 1%.

The S&P 500 rose 135.67 points, or 4.9%, to 2,882.23. The Dow Jones Industrial Average rose 1,167.14 points, or 4.9%, to 25,018.16, and the Nasdaq composite jumped 393.58, or 5%, to 8,344.25.

The recovery is pulling the stock market a bit further from the edge of a bear market, signified by a drop of 20% from a record. The S&P 500 is down 14.9% from its high. If it can rally back to that point, it would extend the longest-ever bull market, which began its climb after the market hit bottom on March 9, 2009.

Brent crude, the international standard, rose $2.86, or 8.3%, to settle at $37.22 a barrel, while benchmark U.S. crude rose $3.23, or 10.4%, to $34.36 a barrel. Oil prices plunged 25% on Monday amid a price war between producers, who are pulling more oil out of the ground even though demand is falling due to the virus.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.

The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three to six weeks to recover. In mainland China, where the virus first exploded, more than 80,000 people have been diagnosed and more than 58,000 have so far recovered.

But because the virus is new, experts can't say for sure how far it will ultimately spread. That has investors worried about the worst-case scenario for corporate profits and the economy, where factories and supply chains are shut around the world due to quarantines and people stay huddled at home instead of working or spending.

Investors expect central banks around the world, which have done some of the heaviest lifting to prop up markets the last decade, to do more to cushion the blow.

Traders expect the Fed to cut rates again at its meeting next week. They're also expecting some kind of action from the European Central Bank, which meets on Thursday.

But central banks have limited firepower, and some have already cut rates blow zero. That adds pressure on governments to do what they can as well.

For strategists at BlackRock Investment Institute, that could include generous sick-pay programs or even direct payments to households. For businesses, governments could suspend collecting tax revenue to give them some temporary relief and hold on to cash as the world waits for the outbreak to be contained.

“That would prevent these temporary disruptions from turning into a full-blown global recession,” strategists at BlackRock Investment Institute wrote in a report.

Until then, many investors have had a “sell-first, ask questions later” reaction to the uncertainty, said Greg McBride, chief financial analyst at Bankrate.com.

Still, he urges investors to avoid changing their long-term investment strategies, which can play out over years or decades, because of short-term volatility.

"Markets fall quickly, but they can rebound rapidly," McBride said. “Investing is a marathon, not a sprint.”