Wednesday's Market Recap - The Covid-19 Bear Roars On Even As Govt. Takes Strong Monetary And Fi
What is The Premarket Telling Us?
7:00 AM.
US stock futures are 'limit down' this morning, meaning the decline has been capped by the trading exchanges. Dow futures down 821 points, Nasdaq down 328 points, Nasdaq futures down 92 points. Coronavirus continues to spread in the US, with West Virginia recording it's first case yesterday. This daily ramp up in numbers is a real negative for markets. Today markets are anticipating more actions by the Federal Reserve, Treasury, and fiscal support for affected employees, and companies.
On The Bond Desk:
The US 10 Year Bond Yield at 1.00%, up .27%
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $25.15/barrel, down 6.68%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed down overnight. Japan (Nikkei 225) 1.68%, Shanghai %, Hong Kong (Hang Seng) down 4.08%.
Major European markets were decidedly lower. German (DAX) down down 5.56%, France CAC 40 down 5.94%, London FTSE 100 4.05%
Market And Sector Dynamics
Stocks opened drastically lower, with the Dow down 1290 points, Nasdaq down 425 points, and the S&P down 136 points, on ongoing fear due to the spread of the coronavirus. The decline in crude oil prices due to the ongoing price war between Saudi Arabia, and Russia. WTI crude oil currently at $24.21/barrel, down 10.24%. The US 10% Bond is at 1.101%, seems to be holding near that level.
Market volatility continued today, as investors weigh the amount of potential government stimulus, that would be required to stabilize markets, and address the economic fallout from the coronavirus outbreak.
This morning, the US and Canada have agreed to close their border to non-essential travel, excluding trade.
Early in the afternoon session, the selloff intensified with the Dow down 2300 points, with all S&P sector on the red. Late in the afternoon session, and shortly before the close, the Dow sank nearly 2900 points, but rapidly bounced off those lows, after the Senate passed the House Coronavirus Bill, to provide support for individuals affected by the spread of coronavirus.
Factors Influencing Today's Market
The number of coronavirus cases continue to spread in the US as more Americans are being tested.
The Senate passed the House's Coronavirus Bill to help individuals affected by the virus.
GM and other Automakers will temporary close down production starting Monday.
US and Canada will close the Northern Border to non-essential travel, excluding trade.
The US 10 Year Bond Yield behaved very today, closing at 1.183%, up 10.66%.
WTI Crude Oil continued its decline, closing today at $20.37/barrel, down 24.42%.
This week's EIA Petroleum Status Report show US oil inventory rose 2 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were again precariously lower. The Dow lost 1338.46 points, Nasdaq fell 344.94 points, and the S&P was down 131.09 points. Total NYSE volume traded, a heavy 8.68 billion shares. Declining shares outpaced Advancing shares better than 15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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