Stock market live updates: Dow futures down 200, traders search for the bottom - CNBC

Traders work during the opening bell at the New York Stock Exchange on February 27, 2020.

Johannes Eisele | AFP | Getty Images

8:09 am: Wall Street anticipating some big Fed rate moves

Markets have no doubt that the Federal Reserve is about to come through with some serious interest rate cuts to combat a slowdown related to the novel coronavirus. Traders have completely priced in a 50 basis point reduction by the central bank's March meeting, a 75% chance of another 25 basis points in April, and a 70% probability for one more 25 basis point move by September, according to the CME's FedWatch tracker. That's not all: The market is assigning a 40% chance for one more move in December that would take the overnight funds rate down to a range of 0.25%-0.5%, and a non-negligible 10% probability of going all the way to zero. On the latter point, JP Morgan economists sees an even bigger likelihood – the firm's economists think there's a 1 in 3 chance that the Fed goes to zero by the end of summer. – Cox

8:06 am: Apple shares higher after Oppenheimer upgrade

Shares of Apple rose 1.7% in premarket after Oppenheimer upgraded the tech giant, saying that the company's products and strong balance sheet should help it withstand any economic uncertainty due to the coronavirus. "We believe Apple products and services will prove more resilient than competitive products in uncertain times," analyst Andrew Uerkwitz said. The firm also said the company is a "recurring revenue machine" and said the tech giant should be able to withstand any coronavirus fears.— Bloom

8:00 am: ECB says it 'stands ready' to step in

The European Central Bank said Monday that the fast-spreading coronavirus added uncertainty to global growth prospects, and it's willing to intervene to combat any economic impact. "The Governing Council stands ready to adjust all its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner," ECB Vice President Luis de Guindos said at a speech in Monday. The remarks marked a change in tone from just last Thursday when president Christine Lagarde told the Financial Times that the coronavirus hasn't reached the point where monetary policymakers need to step in. — Li

7:55 am: Clorox shares rally 1.6% amid sanitizing surge

The maker of household cleaning products rallied in premarket trading Monday morning as the coronavirus continued its spread around the globe and fostered demand for sanitizing wipes, gels and sprays. News of novel cases in metropolitan areas like New York City, in particular, has sparked a boost in production at companies like Clorox, Lysol and Purell-parent Gojo Industries that make hand sanitizers and other ethanol and bleach cleaners, the Wall Street Journal reported on Friday. — Franck

7:45 am: First coronavirus case in New York City

The first coronavirus case in Manhattan has been confirmed, a woman who recently traveled to Iran and is currently isolated in her home. Meanwhile, the disease is spreading rapidly in South Korea and Japan. South Korea has reported an additional 123 cases of the coronavirus, taking the country's total number of infections up to 4,335. Japan has confirmed five more cases in Hokkaido, bringing the country's total number of infections to 77. Iran's health ministry said 66 people have died due to coronavirus.— Li

7:43 am: Twitter shares jump 5% after Elliott Management pushes for CEO change

Shares of Twitter jumped more than 5% during Monday's premarket trading after news that Elliott Management founder and billionaire investor Paul Singer is seeking to replace Twitter CEO Jack Dorsey, a person familiar with the matter told CNBC. The firm said that Dorsey's attention is split between running both Twitter and Square, among other things. Shares of Twitter have shed 22% in the last 6 months. — Stevens

7:35 am: Another record low on the 10-year Treasury yield

The 10-year Treasury yield dropped to a fresh record low below 1.04% as the historic decline in U.S. rates continued amid the coronavirus outbreak and Wall Street calls for Federal Reserve stimulus. The benchmark 10-year rate, which moves inversely with prices, tumbled about 37 basis points in February alone. The fed funds futures market has already priced in a 50 basis point cut at the Fed's meeting this month, according to CME Fed Watch tool.— Li

7:30 pm: Chart analyst says Friday's low is the new line in the sand

On Friday, stocks rapidly pared losses in the last 15 minutes of trading, which serves as the first evidence of "downside exhaustion," according to Rich Ross, Evercore ISI's technical analyst. Therefore, investors should use the S&P 500′s intraday low on Friday — 2,853 — as the "new line in the sand," Ross said. Below that level, there are only two levels of support of note at 2,722 (-7%) and 2,632 (-10%), he added.— Li

7:26 am: Bad China economic data spooked investors

China's official Purchasing Managers' Index (PMI), a gauge for its manufacturing sector, plunged to a record low of just 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday. Any reading below 50 signals a contraction. The somber reading provides the first official snapshot of the state of the Chinese economy since the outbreak of the coronavirus epidemic which has killed almost 3,000 people in mainland China and infected about 80,000.— Li

7:20 am: Dow futures down nearly 200 points after wild overnight session

The market's worst rout since the financial crisis is set to resume as stock futures dropped again before the opening bell.  Dow futures were lower by about 168 points, indicated a loss of about 207 points at Monday's open. The futures market experienced a volatile overnight session where Dow futures traded in a range of more than 1,000 points. S&P 500 and Nasdaq futures also pointed to more losses at the open. — Li

— CNBC's Thomas Franck, Jeff Cox and Michael Bloom contributed reporting

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2020-03-02 12:28:00Z
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McDonald’s giving away free McMuffins on Monday - WGHP FOX 8 Greensboro

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1. McDonald’s giving away free McMuffins on Monday  WGHP FOX 8 Greensboro
2. McDonald's is giving away free Egg McMuffins just as Wendy's launches breakfast  CNN
3. McDonald's celebrating National Egg McMuffin day by giving away free sandwiches  WPXI Pittsburgh
4. Free Egg McMuffin: How to get your free breakfast sandwich Monday morning  AL.com
5. McDonald's giving away free Egg McMuffins Monday | Top Stories  WAND
6. View Full Coverage on Google News

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2020-03-02 12:06:00Z
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US Treasury yields at new low as coronavirus hits China’s factories - Financial Times

Stock markets in Asia and Europe steadied on Monday following last week’s heavy sell-off, while US Treasury yields hovered around record lows, as investors pinned their hopes on central banks setting out measures aimed at cushioning the economic hit from the coronavirus outbreak.

An early rally in European equities fizzled in mid-morning trade, with the continent-wide Stoxx 600 flatlining. London’s FTSE 100 rose 0.9 per cent and Frankfurt’s Dax dropped 0.5 per cent.

That followed a broadly positive session in Asia, where China’s CSI 300 of Shanghai and Shenzhen-listed stocks closed up 3.3 per cent, chalking up its best one-day performance since May. Futures trade suggested no movement on the S&P 500 when Wall Street opens.

The mixed picture came as investors weighed the prospect of central bank easing against an increasingly bleak economic picture emerging from China and beyond.

The Bank of Japan followed the US Federal Reserve with a vow to fight the coronavirus. BoJ governor Haruhiko Kuroda on Monday promised to inject liquidity into markets and hinted at raising asset purchases.

But optimism around the prospect of co-ordinated international action to fight the disease was tempered as the OECD warned global growth could halve this year from its previous forecast and by Chinese manufacturing data that showed factory activity in February plunging to an all-time low.

“On the back of pledges of central bank support, equity markets have recovered this morning,” said Neil MacKinnon at VTB Capital. “The big question is whether the recovery is a ‘dead cat bounce’, to use the market jargon, or whether there is scope for fresh equity market declines.”

Brent crude was initially buoyed, with the international oil marker adding almost 3 per cent, before dropping back to trade up 1.3 per cent at $50.33 a barrel.

The yield on 10-year US Treasuries was down about 6 basis points — having fallen as much as 11 points to a record 1.0347 per cent in earlier trade. Yields fall as bond prices rise.

After the S&P 500 last week dropped 11 per cent, marking the Wall Street benchmark’s worst week since the global financial crisis, investors are betting that central banks will step in to try and mitigate the crisis that is threatening global economic growth. 

Based on trading of Fed funds futures, investors think it is almost certain that the Federal Reserve will cut interest rates when it meets this month. Chairman Jay Powell has said the US central bank is “closely monitoring” developments.

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Governments are taking action to support their economies during the virus outbreak. Italy said it would inject €3.6bn into its economy to mitigate the impact.

Analysts at Rabobank said that, regardless of the extent of the policy response, debt would remain an attractive investment option for investors, saying it was “a discernible near-term possibility” that the yield on the US 10-year could drop below 1 per cent.

“While the path for risky assets will be determined by the degree of activism on the part of global policymakers and an associated financially repressive impulse, the outlook for safe havens is unequivocally positive as either aggressive rate cuts provide support or a perceived insufficient policy response underpins a flight-to-quality bid,” they said.

Ken Cheung, chief Asia currency strategist at Mizuho, said traders were betting that a wave of fiscal stimulus by Beijing could soften the blow to the world’s second-biggest economy from the coronavirus.

“Optimism over a China growth recovery in March is being fuelled by the slowing pace of virus contagion and expectation for China’s strong stimulus,” he said. 

Additional reporting by Robin Harding in Tokyo

Read more about the coronavirus impact

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2020-03-02 11:29:00Z
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US Treasury yields at new low as coronavirus hits China’s factories - Financial Times

Stock markets in Asia and Europe steadied on Monday following last week’s heavy sell-off, while US Treasury yields hovered around record lows, as investors pinned their hopes on central banks unleashing measures aimed at cushioning the economic hit from the coronavirus outbreak.

In Asian trade, China’s CSI 300 of Shanghai and Shenzhen-listed stocks closed up 3.3 per cent, chalking up its best one-day performance since May. Japan’s Topix climbed 1 per cent.

An early rally in European equities fizzled in mid-morning trade, with the continent-wide Stoxx 600 adding 0.2 per cent. In London, the FTSE 100 was 1 per cent higher, while Frankfurt’s Dax dropped 0.4 per cent.

The gains came after the Bank of Japan signalled it would inject liquidity into the financial system and hinted at increased asset purchases. The central bank “will closely monitor future developments, and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases”, Haruhiko Kuroda, BoJ governor, said in a statement.

The brighter mood buoyed crude oil, with the price of Brent, the international marker, climbing 2.6 per cent to $50.95 a barrel.

Equities had initially sold off across Asia after China’s official manufacturing purchasing managers’ index at the weekend showed factory activity in February plunging to an all-time low.

The yield on 10-year US Treasuries was down about 3 basis points — having fallen as much as 11 points to a record 1.0347 per cent in earlier trade. Yields fall as bond prices rise.

After the S&P 500 last week dropped 11 per cent, marking the Wall Street benchmark’s worst week since the global financial crisis, investors are betting that central banks will step in to try and mitigate the crisis that is threatening global economic growth. 

Based on trading of Fed funds futures, investors think it is almost certain that the Federal Reserve will cut interest rates when it meets this month. Chairman Jay Powell has said the US central bank is “closely monitoring” developments.

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Governments are taking action to support their economies during the virus outbreak. Italy said it would inject €3.6bn into its economy to mitigate the impact.

Goldman analysts wrote on Sunday that they were forecasting rate cuts of varying magnitudes by central banks from the UK, Canada and Australia to India and South Korea. They now project the Fed will cut rates by 0.5 percentage points in March and another 0.5 percentage points in the second quarter.

Analysts at Rabobank said that regardless of the extent of the policy response, debt would remain an attractive investment option for investors, saying it was “a discernible near-term possibility” that the yield on the US 10-year could drop below 1 per cent.

“While the path for risky assets will be determined by the degree of activism on the part of global policymakers and an associated financially repressive impulse, the outlook for safe havens is unequivocally positive as either aggressive rate cuts provide support or a perceived insufficient policy response underpins a flight-to-quality bid,” they said.

China’s onshore-traded renminbi strengthened to 6.9566 per US dollar after the central bank set the midpoint of the currency’s trading band to below seven for the first time in more than a week. 

Ken Cheung, chief Asia currency strategist at Mizuho, said traders were betting that a wave of fiscal stimulus by Beijing could soften the blow to the world’s second-biggest economy from the coronavirus.

“Optimism over a China growth recovery in March is being fuelled by the slowing pace of virus contagion and expectation for China’s strong stimulus,” he said. 

Additional reporting by Robin Harding in Tokyo

Read more about the coronavirus impact

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2020-03-02 08:30:00Z
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‘Fear Factor’ Is Running High as Currency Markets Resume Trading - Bloomberg

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‘Fear Factor’ Is Running High as Currency Markets Resume Trading  Bloomberg
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2020-03-01 13:51:00Z
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3 charts: Why the stock market sell-off won't impact Americans right away : The stock market erased $6 tr.. - Business Insider

Foto: Brendan McDermid/Reuters

• Stocks plunged last week over escalating fears of the coronavirus‘ spread and the damage it could inflict on global economies.
• The market sell-off erased $6 trillion of market value, according to S&P Dow Jones Indices.
• Three charts illustrate why the stock market bears little short-term impact on most people’s lives.
• Most Americans don’t own stock, and those that do skew wealthier. And under half of families have retirement accounts.
• Visit Business Insider’s homepage for more stories.

Stocks plunged last week and entered a correction amid escalating fears of the coronavirus‘ spread and the damage it could inflict on the global economy. When all was said and done, the S&P 500 had suffered its worst week since the financial crisis – October 2008 to be exact.

The drubbing erased more than $6 trillion in market value in just five days, according to S&P Dow Jones Indices senior analyst Howard Silverblatt.

The sell-off was fueled by concerns that efforts to contain the virus could stymie economic growth and cut corporate profits. The coronavirus has spread to over 55 countries beyond its point of origin in China, infecting over 83,000 people around the world.

On Thursday, the S&P 500 posted its fastest correction – defined as a 10% drop from its recent peak – since the Great Depression.

Read more: Goldman Sachs reveals the 10 best stocks to buy now for a market comeback from the coronavirus-driven plunge

The Dow Jones industrial average and Nasdaq Composite index are also down at least 10% from their latest highs. The Dow alone lost over 3,000 points last week. The losses could wreak havoc on the economy if it spirals into recession, though that outcome is still very uncertain.

But it won’t immediately impact their day-to-day existences.

„For most Americans, it’s a side show in their economic lives,“ Jacob Hacker, director of the Institute for Social and Policy Studies at Yale University, told USA Today about the stock market. „What really matters to them is the security of their jobs and health care, and the amount they have to pay for big-ticket items like housing and education.“

Here are three charts illustrating why the stock market bears little short-term impact on most people.

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Most Americans simply don’t invest in stocks.

Foto: Source: Business Insider/Andy Kiersz, data from Federal Reserve

The chart above shows the share of Americans in each part of the wealth distribution who directly own stocks.

Data from the Federal Reserve shows that only 8% in the bottom half of household net worth own stock shares. That’s compared to 89% in the upper half of the distribution.

Just over half – 51% – are in the wealthiest 10% of US households.

That trend locks out a substantial share of Americans from reaping the benefits of a booming market – or the effects of one that plummets.

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The amount and value of stock holdings skews heavily towards the richest Americans.

Foto: Source: Business Insider/Andy Kiersz, data from Federal Reserve

The average family among the top 10% of US households who own stock tend to have portfolios worth $200,000 and above, according to the Federal Reserve – at least 60x more than the bottom half of the wealth distribution.

As a result, stock losses would hit those with much higher incomes initially.

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Less than half of Americans in the bottom half of the wealth distribution had money invested into retirement accounts.

Foto: Source: Business Insider/Andy Kiersz, data from Federal Reserve

Under half of Americans in the bottom half of the wealth distribution had money invested into retirement accounts, which includes IRAs, 401(k)s or similar.

In 2017, the US Census Bureau reported only a third of workers contributed to a 401(k) plan.

Of course, the recent stock market losses puts a dent in their savings.

Nearly half of families in America don’t have any retirement savings at all, according to a study from the left-leaning Economic Policy Institute.

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2020-03-01 13:46:00Z
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Dems crash coronavirus press event on 'SNL' - CNN

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc.2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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2020-03-01 08:44:36Z
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