5 things to know before the stock market opens Friday - CNBC

1. Dow set to sink again after biggest point-loss ever

Traders work during the opening bell at the New York Stock Exchange (NYSE) on February 27, 2020 at Wall Street in New York City.

Johannes Eisele | AFP | Getty Images

U.S. stock futures were pointing to a 500-point decline for the Dow Jones Industrial Average at Friday's open on Wall Street, pushing blue chips further into a correction. Fears of a possible coronavirus pandemic crushed stocks this week, with the Dow off more than 11% and tracking for its worst weekly performance since the 2008 financial crisis. The Dow finished at a record high just 11 sessions ago on Feb. 12. As of Thursday's close, it was down nearly 13% since then. Thursday's nearly 4.4% decline for the Dow was the worst day back to February 2018. The Dow's nearly 1,200 point plunge Thursday was its worst point-loss ever.

2. 10-year Treasury yield collapses to another record low

Investors are dumping global stocks as well, with markets from Europe to Asia down 3% to 5%, and they're pouring money into the perceived safety of bonds. The 10-year U.S. Treasury yield, which moves inversely to price, hit another record low below 1.2%. The 10-year yield serves as a benchmark for mortgage rates, auto loans, student loans, credit card annual percentage rates and other debt instruments. The yields on the 2-year and 5-year Treasurys were trading below 1% early Friday. Global markets have lost $6 trillion in value over the past six days, according to S&P Dow Jones Indices.

3. Market expectations of Fed rate cut increasing

The carnage in stocks and plummeting Treasury yields are raising market expectations of a Federal Reserve interest rate cut. Ex-Fed Gov. Kevin Warsh told CNBC on Friday he sees a coordinated global central bank action soon in response to coronavirus. Before the outbreak, the Fed was telling the market it planned to hold rates steady for a while after three cuts of 0.25% each last year. A Fed official during the financial crisis in 2008, Warsh has been critical of Fed officials for not normalizing interest rates sooner and thus leaving themselves more room to act in times of crisis.

4. WHO warns coronavirus could reach every country

The World Health Organization on Friday reiterated its warning that COVID-19 could reach every country on Earth. On Tuesday, the WHO had warned countries around the world to be prepared for the coronavirus to be "literally knocking at the door." Infections continued to rise in hot spots outside of China — in South Korea, Iran, the U.K., Germany and Italy. The U.S. has about 60 cases. The vast majority of infections and deaths are still in China, where officials increased the count of confirmed cases to nearly 79,000, with fatalities approaching 2,800.

5. Biden looks to South Carolina and then Super Tuesday for comeback

Joe Biden leaving a campaign event in Georgetown, South Carolina on Feb. 26, 2020.

Tucker Higgins / CNBC

Heading into Saturday's South Carolina primary, former Vice President Joe Biden was leading in the polls after poor results in Iowa, New Hampshire and Nevada. A political action committee backing the embattled former front-runner for the Democratic presidential nomination invested in key Super Tuesday states. Biden is third so far in the delegate count, behind Sen. Bernie Sanders and Pete Buttigieg. Mike Bloomberg, a latecomer to the race, will be on ballots for the first time on Super Tuesday, when a third of the party's delegates are up for grabs.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiZGh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjAvMDIvMjgvNS10aGluZ3MtdG8ta25vdy1iZWZvcmUtdGhlLXN0b2NrLW1hcmtldC1vcGVucy1mZWJydWFyeS0yOC0yMDIwLmh0bWzSAWhodHRwczovL3d3dy5jbmJjLmNvbS9hbXAvMjAyMC8wMi8yOC81LXRoaW5ncy10by1rbm93LWJlZm9yZS10aGUtc3RvY2stbWFya2V0LW9wZW5zLWZlYnJ1YXJ5LTI4LTIwMjAuaHRtbA?oc=5

2020-02-28 12:33:00Z
52780630255565

Dow Futures Extend Slump Amid Worst Stock Market Slide Since Global Financial Crisis - TheStreet

Dow Futures Extend Slump Amid Worst Stock Market  Slide Since Global Financial Crisis

Wall Street looks set to extend its worst week since the financial crisis -- and the fastest correction on record for the S&P 500 -- as investors fear the coronavirus will accelerate into a global pandemic.

Author:

Martin Baccardax

Updated:

Feb 28, 2020 7:13 AM EST

Original:

Feb 28, 2020

The Friday Market Minute

• Global stocks near correction territory, amid the worst five-day stretch since November 2008, as health officials warn of a potential cornoavirus pandemic.
• COVID-19 cases top 83,000 worldwide, with new infections in Africa and New Zealand overnight, as governments accelerate their response procedures and biotechs race to find an effective vaccine.
• European stocks extend slump, taking the Stoxx 600's five-day decline to 11.6%, with basic resource and tech shares leading the decline.
• Benchmark 10-year U.S. Treasury bond yields hit fresh all-time low of 1.15% in overnight trading, with 2-year notes slipping below 1%, as investors bet on central bank support and Fed rate cuts amid the fastest correction on record for the S&P 500.
• The CBOE's VIX volatility index hits a two-year high of 45.67, sending stocks reeling as investors dump risk in markets around the world.
• U.S. equity futures suggest further opening bell declines on Wall Street ahead of earnings from Foot Locker before the start of trading and January inflation data at 8:30 am Eastern time.

Wall Street's historic rout looks set to continue Friday, with futures prices pointing to extended declines for the three major benchmarks amid the worst week for world stocks since the financial crisis, as investors prepare for what could be a global coronavirus pandemic. 

Asia stocks were pummeled in overnight trading, following on from last night's sell-off on Wall Street that hived more than 1,000 points from the Dow Jones Industrial Average for the second time this week, pulling the MSCI World stock benchmark closer to correction territory, wiping out more than $5 trillion in equity value and setting up its worst five-day run since November 2008.

With Moody's Investors Service warning of the potential for a coronavirus-lead global recession, supply chains disrupted by China's ongoing health crisis and the lingering effects of its trade war with the United States and government bond yields around the world testing fresh all-time lows, risk appetite was in short supply Friday, with gold price rising, oil extending declines and fund manager cash piles expanding.

More than 83,000 people -- mostly in China but in rising numbers around the world -- have been infected by the respiratory virus, officially known as COVID 19, with new cases confirmed overnight in Nigeria, New Zealand and Lithuania.

"This virus has pandemic potential," World Health Organization Director General Tedros Adhanom Ghebreyesu said Thursday. "This is not a time for fear. This is a time for taking action to prevent infection and save lives now."

With an unknown lethality and a rising infection rate, COVID 19's impact on the global economy is unknown at this stage, but with U.S. equity valuations recently trading at their highest levels since 2002, investors are in little mood to speculate on the ultimate outcome of any pandemic.

U.S. equity futures, in fact, suggest another session of deep declines on Wall Street Friday, with contracts tied to the Dow Jones Industrial Average priced for a 470 point slide, taking the five-day total to around 1,600 points, and those linked to the S&P 500 poised for a 51 point retreat.

The S&P 500, in fact, suffered its fastest "correction" -- where stocks fall from 10% from a recent peak -- on record as of yesterday when the benchmark closed under the 3,000 point mark after hitting an all-time high on February 19. Nasdaq futures suggest a 144 point opening bell decline.

Benchmark 10-year U.S. Treasury bond yields, meanwhile, fell to a fresh all-time low of 1.15% mark in early European trading, extending a decline that has clipped more than 70 basis points from one of the world's most liquid financial instruments since the beginning of the year. Two-year notes, meanwhile, traded below the 1% mark for the first time on record, a move that was shortly followed by a similar level for 5-year notes.

With bond yields tumbling, pressure continues to mount on the Federal Reserve -- and indeed other central banks around the world -- to respond with either rate cuts or targeted monetary support.

Chicago Fed President Charles Evans, however, told a financial conference in Mexico Thursday that it would be "premature" to talk about central bank action in the wake of COVID 19's spread, and repeated the Fed's stance of "closely monitoring" developments in the global economy.

CME Group futures, however, now suggest at least a 77% chance of a March rate cut, compared to just 9% only a week ago, and are fully pricing in further cuts between now and the end of the year.

European stocks opened notably weaker in Frankfurt, London and Milan, with the Stoxx 600 benchmark tumbling 3% by mid-day of trading, while the FTSE 100 slumped 3% to the lowest levels since 2016 in London.

Germany's DAX index, which has fallen 15% from its recent highs, was marked 3.8% lower by mid-morning trade in Frankfurt.

In Italy, where the number of coronavirus cases has risen to 655 -- from just 3 a week ago -- with at least 17 deaths, the benchmark FTSE MIB index fell 3.4% in early dealing in Milan.

Global oil prices, too, extended declines amid their worst five-day stretch in four years, taking Brent crude some 15% lower on the week as investors adjusted demand forecasts from both China and other major economies around the world.

Brent crude futures contracts for April delivery, the global benchmark, were last see seen $2.1 lower from their Thursday close in New York and trading at $50.08 per barrel, while WTI contracts for the same month were seen $2.07 lower at $45.02 per barrel.

Overnight in Asia, Japan's Nikkei closed out a 9.6% slide for the week with a 3.67% slump that pegged the benchmark at 21,142.96 points, while China's Shanghai Composite fell 3.7% and Hong Kong's Heng Seng index tumbled 2.71%.

By

Martin Baccardax

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiXmh0dHBzOi8vd3d3LnRoZXN0cmVldC5jb20vaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXPSAWNodHRwczovL3d3dy50aGVzdHJlZXQuY29tLy5hbXAvaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXM?oc=5

2020-02-28 12:13:00Z
52780637620792

McDonald's declares March 2nd National Egg McMuffin Day - Fox News

The first Monday of March might as well be known as Egg McMonday.

McDonald’s is celebrating one of their most famous menu items by declaring Monday, March 2nd as National Egg McMuffin day. Of course, fans will be able to get their hands on the popular breakfast sandwich on its very own holiday.

McDonald's is giving free Egg McMuffins on Monday to customers that download their mobile app and redeem the offer between 6-10:30 a.m. (McDonald's)

In a press release sent to Fox News, McDonald’s announced that fans will have the opportunity to get a free Egg McMuffin on Monday.

According to McDonald’s, “We’re inviting fans to celebrate with us by getting a free, freshly prepared Egg McMuffin at participating McDonald’s nationwide. Customers need only download our mobile app to redeem this offer between 6-10:30 a.m. local time on Monday, March 2. Now that’s something worth getting up for.”

MCDONALD'S CUSTOMER GIVEN A 'MONSTROSITY' WHEN HE ASKED FOR 'EXTRA CREAM CHEESE' ON BAGEL

The company also elaborated on the history of the sandwich. “The breakfast game changed forever in 1971 when McDonald’s introduced the Egg McMuffin, the first quick-service restaurant breakfast sandwich. The iconic Egg McMuffin was first created in early 1971 in Santa Barbara, California McDonald’s restaurant. What started as an attempt to make Eggs Benedict became a legendry breakfast icon: the Egg McMuffin. We’re proud to recognize the longstanding legacy of the Egg McMuffin nearly 50 years later with National Egg McMuffin Day.”

CLICK HERE TO GET THE FOX NEWS APP

McDonald’s isn’t just celebrating the Egg McMuffin this year.

The fast-food chain’s iconic Shamrock Shake turns 50 this year and, in celebration of its golden anniversary, the fast-food chain is auctioning off a glitzy collectible cup for a good cause.

FOLLOW US ON FACEBOOK FOR MORE FOX LIFESTYLE NEWS

Hitting the eBay for Charity auction block on Tuesday, super-fans can try their luck at winning Golden Shamrock Shake cup, which is appraised at $90,000 — it is made of 18K gold and adorned with 50 green emeralds and white diamonds to honor 50 years of the Shamrock Shake. The sparkling cup also features 50 yellow diamonds in a Golden Arches logo, to represent its years of success at McDonald’s.

Fox News' Janine Puhak contributed to this report.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiRmh0dHBzOi8vd3d3LmZveG5ld3MuY29tL2Zvb2QtZHJpbmsvbWNkb25hbGRzLW5hdGlvbmFsLWVnZy1tY211ZmZpbi1kYXnSAUpodHRwczovL3d3dy5mb3huZXdzLmNvbS9mb29kLWRyaW5rL21jZG9uYWxkcy1uYXRpb25hbC1lZ2ctbWNtdWZmaW4tZGF5LmFtcA?oc=5

2020-02-28 12:02:55Z
52780637641604

Dow Futures Extend Slump Amid Worst Stock Market Slide Since Global Financial Crisis - TheStreet

Dow Futures Extend Slump Amid Worst Stock Market  Slide Since Global Financial Crisis

Wall Street looks set to extend its worst week since the financial crisis -- and the fastest correction on record for the S&P 500 -- as investors fear the coronavirus will accelerate into a global pandemic.

Author:

Martin Baccardax

Updated:

Feb 28, 2020 7:13 AM EST

Original:

Feb 28, 2020

The Friday Market Minute

• Global stocks near correction territory, amid the worst five-day stretch since November 2008, as health officials warn of a potential cornoavirus pandemic.
• COVID-19 cases top 83,000 worldwide, with new infections in Africa and New Zealand overnight, as governments accelerate their response procedures and biotechs race to find an effective vaccine.
• European stocks extend slump, taking the Stoxx 600's five-day decline to 11.6%, with basic resource and tech shares leading the decline.
• Benchmark 10-year U.S. Treasury bond yields hit fresh all-time low of 1.15% in overnight trading, with 2-year notes slipping below 1%, as investors bet on central bank support and Fed rate cuts amid the fastest correction on record for the S&P 500.
• The CBOE's VIX volatility index hits a two-year high of 45.67, sending stocks reeling as investors dump risk in markets around the world.
• U.S. equity futures suggest further opening bell declines on Wall Street ahead of earnings from Foot Locker before the start of trading and January inflation data at 8:30 am Eastern time.

Wall Street's historic rout looks set to continue Friday, with futures prices pointing to extended declines for the three major benchmarks amid the worst week for world stocks since the financial crisis, as investors prepare for what could be a global coronavirus pandemic. 

Asia stocks were pummeled in overnight trading, following on from last night's sell-off on Wall Street that hived more than 1,000 points from the Dow Jones Industrial Average for the second time this week, pulling the MSCI World stock benchmark closer to correction territory, wiping out more than $5 trillion in equity value and setting up its worst five-day run since November 2008.

With Moody's Investors Service warning of the potential for a coronavirus-lead global recession, supply chains disrupted by China's ongoing health crisis and the lingering effects of its trade war with the United States and government bond yields around the world testing fresh all-time lows, risk appetite was in short supply Friday, with gold price rising, oil extending declines and fund manager cash piles expanding.

More than 83,000 people -- mostly in China but in rising numbers around the world -- have been infected by the respiratory virus, officially known as COVID 19, with new cases confirmed overnight in Nigeria, New Zealand and Lithuania.

"This virus has pandemic potential," World Health Organization Director General Tedros Adhanom Ghebreyesu said Thursday. "This is not a time for fear. This is a time for taking action to prevent infection and save lives now."

With an unknown lethality and a rising infection rate, COVID 19's impact on the global economy is unknown at this stage, but with U.S. equity valuations recently trading at their highest levels since 2002, investors are in little mood to speculate on the ultimate outcome of any pandemic.

U.S. equity futures, in fact, suggest another session of deep declines on Wall Street Friday, with contracts tied to the Dow Jones Industrial Average priced for a 470 point slide, taking the five-day total to around 1,600 points, and those linked to the S&P 500 poised for a 51 point retreat.

The S&P 500, in fact, suffered its fastest "correction" -- where stocks fall from 10% from a recent peak -- on record as of yesterday when the benchmark closed under the 3,000 point mark after hitting an all-time high on February 19. Nasdaq futures suggest a 144 point opening bell decline.

Benchmark 10-year U.S. Treasury bond yields, meanwhile, fell to a fresh all-time low of 1.15% mark in early European trading, extending a decline that has clipped more than 70 basis points from one of the world's most liquid financial instruments since the beginning of the year. Two-year notes, meanwhile, traded below the 1% mark for the first time on record, a move that was shortly followed by a similar level for 5-year notes.

With bond yields tumbling, pressure continues to mount on the Federal Reserve -- and indeed other central banks around the world -- to respond with either rate cuts or targeted monetary support.

Chicago Fed President Charles Evans, however, told a financial conference in Mexico Thursday that it would be "premature" to talk about central bank action in the wake of COVID 19's spread, and repeated the Fed's stance of "closely monitoring" developments in the global economy.

CME Group futures, however, now suggest at least a 77% chance of a March rate cut, compared to just 9% only a week ago, and are fully pricing in further cuts between now and the end of the year.

European stocks opened notably weaker in Frankfurt, London and Milan, with the Stoxx 600 benchmark tumbling 3% by mid-day of trading, while the FTSE 100 slumped 3% to the lowest levels since 2016 in London.

Germany's DAX index, which has fallen 15% from its recent highs, was marked 3.8% lower by mid-morning trade in Frankfurt.

In Italy, where the number of coronavirus cases has risen to 655 -- from just 3 a week ago -- with at least 17 deaths, the benchmark FTSE MIB index fell 3.4% in early dealing in Milan.

Global oil prices, too, extended declines amid their worst five-day stretch in four years, taking Brent crude some 15% lower on the week as investors adjusted demand forecasts from both China and other major economies around the world.

Brent crude futures contracts for April delivery, the global benchmark, were last see seen $2.1 lower from their Thursday close in New York and trading at $50.08 per barrel, while WTI contracts for the same month were seen $2.07 lower at $45.02 per barrel.

Overnight in Asia, Japan's Nikkei closed out a 9.6% slide for the week with a 3.67% slump that pegged the benchmark at 21,142.96 points, while China's Shanghai Composite fell 3.7% and Hong Kong's Heng Seng index tumbled 2.71%.

By

Martin Baccardax

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiXmh0dHBzOi8vd3d3LnRoZXN0cmVldC5jb20vaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXPSAWNodHRwczovL3d3dy50aGVzdHJlZXQuY29tLy5hbXAvaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXM?oc=5

2020-02-28 11:39:00Z
52780637620792

Coronavirus crash wipes $5 trillion off world stocks - NBC News

LONDON — Coronavirus panic sent world share markets crashing again on Friday, compounding their worst week since the 2008 global financial crisis and bringing the wipeout in value terms to $5 trillion.

The rout showed no signs of slowing as Europe's main markets slumped 2-3 percent early on and the ongoing dive for safety sent yields on U.S. government bonds, seen as probably the securest asset in the world, to fresh record lows.

Hopes that the epidemic that started in China would be over in months, and that economic activity would quickly return to normal have been shattered this week as the number of international cases have spiraled.

Bets are now that the Federal Reserve will cut U.S. interest rates as soon as next month and other major central banks will follow to try and nurse economies through the troubles and stave off a global recession.

Feb. 27, 202001:53

"Investors are trying to price in the worst case scenario and the biggest risk is what happens now in the United States and other major countries outside of Asia," said SEI Investments Head of Asian Equities John Lau.

"These are highly uncertaint times, no one really knows the answer and the markets are really panicking."

Disruptions to international travel and supply chains, school closures and cancellations of major events have all blackened the outlook for a world economy that was already struggling with the U.S.-China trade war fallout

Let our news meet your inbox. The news and stories that matters, delivered weekday mornings.

MSCI's all country world index, which tracks almost 50 countries, was down over 1 percent once Europe opened and almost 10 percent for the week — the worst since October 2008.

Wall Street shares had plunged 4.4 percent on Thursday alone which was its largest fall since August 2011. They have now lost 12 percent since hitting a record high just nine days ago, driving into so-called correction territory.

The CBOE volatility index, often called the "fear index," jumped to 39.16, its highest in about two years, well out of the 11-20 range of recent months.

The index, which measures expected swings in U.S. shares in the next 30 days, typically shoots up to around 50 when bear market selling hits its heaviest and approached almost 90 during the 2008-09 financial crisis.

Pandemic warning

In Asia, MSCI's regional index excluding Japan shed 2.7 percent. Japan's Nikkei slumped 4.3 percent on rising fears the Olympics planned in July-August may be called off due to the coronavirus.

"The coronavirus now looks like a pandemic. Markets can cope even if there is big risk as long as we can see the end of the tunnel," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

"But at the moment, no one can tell how long this will last and how severe it will get."

Traders work during the opening bell at the New York Stock Exchange on Thursday.Johannes Eisele / AFP - Getty Images

World Health Organization Director General Tedros Adhanom Ghebreyesus said the virus could become a pandemic as the outbreak spreads to major developed economies such as Germany and France.

About 10 countries have reported their first virus cases over the past 24 hours, including Nigeria, the biggest economy in Africa.

The global rout knocked mainland Chinese shares, which have been relatively well supported this month, as new coronavirus cases in the country fell and Beijing doled out measures to shore up economic growth.

The CSI300 index of Shanghai and Shenzhen shares dropped 2.9 percent, on track for its first weekly loss in three.

Oil prices languished at their lowest in more than a year having plunged 12 percent this week — its worst since 2016 — while all the major industrial metals have dropped between 3 percent and 6 percent.

The appeal of guaranteed income sent high-grade bonds. U.S. yields plunging with the benchmark 10-year notes yield hitting a record low of 1.241 percent. It last stood at 1.247 percent.

That is well below the three-month bill yield of 1.436 percent, deepening the so-called inversion of the yield curve. Historically an inverted yield curve is one of the most reliable leading indicators of a U.S. recession.

Expectations the Fed will cut interest rates to cushion the blow are rising in money markets. Analysts say Fed funds futures are now pricing in about a 75 percent chance of a 25 basis point cut at the central bank's March 17-18 meeting.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiYWh0dHBzOi8vd3d3Lm5iY25ld3MuY29tL2J1c2luZXNzL21hcmtldHMvY29yb25hdmlydXMtY3Jhc2gtd2lwZXMtNS10cmlsbGlvbi13b3JsZC1zdG9ja3MtbjExNDQ2MzbSASxodHRwczovL3d3dy5uYmNuZXdzLmNvbS9uZXdzL2FtcC9uY25hMTE0NDYzNg?oc=5

2020-02-28 10:34:00Z
52780636672078

Dow is set to tank again after Thursday's massive tumble on coronavirus fears - msnNOW

U.S. stock futures pointed to more losses early Friday after the major indexes suffered a tumble that sent them more than 10% below their record highs.

Load Error

As of 6:20 a.m. ET, Dow Jones Industrial Average futures indicated an opening loss of more than 400 points. S&P 500 and Nasdaq 100 futures also pointed to a sharply lower open on Friday.

Meanwhile, bond yields also continued to slip as the yield on the benchmark U.S. 10-year Treasury touched new record lows. It was last at 1.18%.

The Dow plummeted nearly 1,200 points on Thursday — its biggest one-day point drop ever — as worries over the coronavirus possibly spreading sent stocks spiraling lower. The 30-stock average closed in correction territory along with the S&P 500 and Nasdaq Composite.

The Dow had closed at a record high on Feb. 12. It only took the S&P 500 six days to fall from an all-time high into correction levels, marking the broad index’s fastest drop of that magnitude.

“People have been so preconditioned to buy the dip and to always expect the market to recover that people can get smacked around with moves like this,” said Patrick Hennessy, head trader at IPS Strategic Capital. “No one knows how this thing ends.”

Thursday’s declines also put the Dow and S&P 500 down more than 10.5% each for the week, on pace for their worst weekly performance since 2008.

The sharp drop came after California Gov. Gavin Newsom said the state is monitoring 8,400 people for coronavirus. Meanwhile, the CDC confirmed on Wednesday evening the first U.S. coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease.

The number of confirmed coronavirus cases outside of China has also jumped. In South Korea, more than 1,700 cases have been confirmed along with over 600 in Italy.

“The timing of this was just the worst with respect to investor sentiment being elevated,” said Doug Ramsey, chief investment officer at The Leuthold Group. “I’m not sure that the market has really priced in the potential economic impact of this.”

Concerns over the coronavirus have also led several companies to issue earnings and revenue warnings. Microsoft said Wednesday one of its key divisions may not meet the company’s previous revenue guidance. PayPal also warned about its outlook on Thursday.

Goldman Sachs’ David Kostin warned U.S. companies will see no earnings growth this year. “Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty,” said Kostin, the bank’s chief U.S. equity strategist.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMigAFodHRwczovL3d3dy5tc24uY29tL2VuLXVzL21vbmV5L21hcmtldHMvZG93LWlzLXNldC10by10YW5rLWFnYWluLWFmdGVyLXRodXJzZGF5cy1tYXNzaXZlLXR1bWJsZS1vbi1jb3JvbmF2aXJ1cy1mZWFycy9hci1CQjEwcnR5N9IBAA?oc=5

2020-02-28 11:00:00Z
52780630255565

Dow Futures Plunge Amid Worst Stock Market Slide Since Global Financial Crisis - TheStreet

Dow Futures Plunge Amid Worst Stock Market  Slide Since Global Financial Crisis

Wall Street looks set to extend its worst week since the financial crisis -- and the fastest correction on record for the S&P 500 -- as investors fear the coronavirus will accelerate into a global pandemic.

Author:

Martin Baccardax

Updated:

Feb 28, 2020 5:03 AM EST

Original:

Feb 28, 2020

The Friday Market Minute

• Global stocks near correction territory, amid the worst five-day stretch since November 2008, as health officials warn of a potential cornoavirus pandemic.
• COVID-19 cases top 83,000 worldwide, with new infections in Africa and New Zealand overnight, as governments accelerate their response procedures and biotechs race to find an effective vaccine.
• European stocks extend slump, taking the Stoxx 600's five-day decline to 11.6%, with basic resource and tech shares leading the decline.
• Benchmark 10-year U.S. Treasury bond yields hit fresh all-time low of 1.15% in overnight trading, with 2-year notes slipping below 1%, as investors bet on central bank support and Fed rate cuts amid the fastest correction on record for the S&P 500.
• The CBOE's VIX volatility index hits a two-year high of 45.67, sending stocks reeling as investors dump risk in markets around the world.
• U.S. equity futures suggest further opening bell declines on Wall Street ahead of earnings from Foot Locker before the start of trading and January inflation data at 8:30 am Eastern time.

Wall Street historic rout looks set to continue Friday, with futures prices pointing to extended declines for the three major benchmarks amid the worst week for world stocks since the financial crisis, as investors prepare for what could be a global coronavirus pandemic. 

Asia stocks were pummeled in overnight trading, following on from last night's sell-off on Wall Street that hived more than 1,000 points from the Dow Jones Industrial Average for the second time this week, pulling the MSIC World stock benchmark closer to correction territory and setting up its worst five-day run since November 2008.

With Moody's Investors Service warning of the potential for a coronavirus-lead global recession, supply chains disrupted by China's ongoing health crisis and the lingering effects of its trade war with the United States and government bond yields around the world testing fresh all-time lows, risk appetite was in short supply Friday, with gold price rising, oil extending declines and fund manager cash piles expanding.

More than 83,000 people -- mostly in China but in rising numbers around the world -- have been infected by the respiratory virus, officially known as COVID 19, with new cases confirmed overnight in Nigeria, New Zealand and Lithuania.

"This virus has pandemic potential," World Health Organization Director General Tedros Adhanom Ghebreyesu said Thursday. "This is not a time for fear. This is a time for taking action to prevent infection and save lives now."

With an unknown lethality and a rising infection rate, COVID 19's impact on the global is unknown at this stage, but with U.S. equity valuations recently trading at their highest levels since 2002, investors are in little mood to speculate on the ultimate outcome of any pandemic.

U.S. equity futures, in fact, suggest another session of deep declines on Wall Street Friday, with contracts tied to the Dow Jones Industrial Average priced for a 615point slide, taking the five-day total to around 1,600 points, and those linked to the S&P 500 poised for a 70 point retreat.

The S&P 500, in fact, suffered its fastest "correction" -- where stocks fall from 10% from a recent peak -- on record as of yesterday when the benchmark closed under the 3,000 point mark after hitting an all-time high on February 19. Nasdaq futures suggest a 212 point opening bell decline.

Benchmark 10-year U.S. Treasury bond yields, meanwhile, fell to a fresh all-time low of 1.15% mark in early European trading, extending a decline that has clipped more than 70 basis points from one of the world's most liquid financial instruments since the beginning of the year. Two-year notes, meanwhile, traded below the 1% mark for the first time on record, a move that was shortly followed by a similar level for 5-year notes.

With bond yields tumbling, pressure continues to mount on the Federal Reserve -- and indeed other central banks around the world -- to respond with either rate cuts or targeted monetary support.

Chicago Fed President Charles Evans, however, told a financial conference in Mexico Thursday that it would be "premature" to talk about central bank action in the wake of COVID 19's spread, and repeated the Fed's stance of "closely monitoring" developments in the global economy.

CME Group futures, however, now suggest at least a 77% chance of a March rate cut, compared to just 9% only a week ago, and are fully pricing in further cuts between now and the end of the year.

European stocks opened notably weaker in Frankfurt, London and Milan, with the Stoxx 600 benchmark tumbling 4.1% at the start of trading, while the FTSE 100 slumped 4% to the lowest levels since 2016 in London.

Germany's DAX index, which has fallen 15% from its recent highs, was marked 4.5% lower by mid-morning trade in Frankfurt.

In Italy, where the number of coronavirus cases has risen to 655 -- from just 3 a week ago -- with at least 17 deaths, the benchmark FTSE MIB index fell 3.4% in early dealing in Milan.

Global oil prices, too, extended declines amid their worst five-day stretch in four years, taking Brent crude some 15% lower on the week as investors adjusted demand forecasts from both China and other major economies around the world.

Brent crude futures contracts for April delivery, the global benchmark, were last see seen $2.1 lower from their Thursday close in New York and trading at $50.08 per barrel, while WTI contracts for the same month were seen $2.07 lower at $45.02 per barrel.

Overnight in Asia, Japan's Nikkei closed out a 9.6% slide for the week with a 3.67% slump that pegged the benchmark at 21,142.96 points, while China's Shanghai Composite fell 3.7% and Hong Kong's Heng Seng index tumbled 2.71%.

By

Martin Baccardax

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiXmh0dHBzOi8vd3d3LnRoZXN0cmVldC5jb20vaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXPSAWNodHRwczovL3d3dy50aGVzdHJlZXQuY29tLy5hbXAvaW52ZXN0aW5nL2Rvdy1mdXR1cmVzLWZhbGwtd29yc3Qtc2xpZGUtc2luY2UtZ2xvYmFsLWZpbmFuY2lhbC1jcmlzaXM?oc=5

2020-02-28 10:03:00Z
52780630255565