Dow Drops 2100 Points: Stocks In Meltdown After Temporary Trading Halt - NPR

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After weeks of turmoil over the economic toll of the coronavirus, U.S. stock indexes entered a bear market, signaling an end to their 11-year winning streak. Jeenah Moon/Getty Images hide caption

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Updated at 10:17 a.m. ET

The stock market continued its relentless, breathtaking drop Thursday — moving deeper into bear territory — with major U.S. indexes sinking as much as 8%. Stocks fell so fast, it triggered a 15-minute halt in trading for the second time this week.

The Dow Jones Industrial Average was down more than 2,100 points, or 7.8%. The S&P 500 fell 7.5% and the Nasdaq was down 6.5%.

Those indexes are now down more than 25% from record highs set just last month.

The market tumble came hours after President Trump announced a 30-day ban on travel from European countries to the United States.

Trump said it was an effort to stem the spread of the coronavirus, but the move caused confusion on both sides of the Atlantic and drew skepticism from several health experts.

Thursday's drop followed a nearly 6% percent plunge in the Dow on Wednesday, when the blue chip index entered a bear market, defined as falling 20% from its peak. The S&P 500 is now also in a bear market, ending an 11-year winning streak.

Trading was also halted briefly on Monday after the S&P 500 fell 7%, triggering automatic circuit breakers. The Dow lost 2,013 points on that day.

In addition to the travel ban, Trump also announced measures to overcome "temporary economic disruptions" caused by the disease. The proposals include a $50 billion program to provide low-interest loans to small businesses affected by the coronavirus.

Congressional Democrats also unveiled a legislative stimulus package aimed at easing the economic damage. Their plan includes expanded unemployment reimbursement for states, extra money for food security for low-income children and federally funded family and sick leave for people affected by the virus.

The coronavirus pandemic has had far-reaching and quickly developing economic impacts.

Thursday morning, Princess Cruises, which has had several ships hit by coronavirus outbreaks, announced it will pause operations of its 18 cruise ships globally for 60 days. The move is in response "to the unpredictable circumstances evolving from the global spread of COVID-19," the company said.

The airline industry has also been hard hit by travel cancelations and travel restrictions. "I would say we're in the middle of a very significant impact, some would say devastating impact, to the airline industry," JetBlue CEO Robin Hayes told NPR.

Wednesday night, the NBA suspended the rest of its season after a player on the Utah Jazz preliminarily tested positive for the coronavirus.

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2020-03-12 14:38:44Z
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European Central Bank provides coronavirus relief but keeps interest rates steady - CNN

But the central bank, which also took steps to boost liquidity, did not push interest rates deeper into negative territory, a move that some investors had been expecting.

Interest rates are already at historic lows in Europe, and economists had expressed concern that trimming them further would be insufficient to fight an economic shock. Still, the decision to keep rates steady fed a freefall in European stocks on Thursday, with Germany's DAX and France's CAC 40 extending losses to 8.8% and 9.5%, respectively.

As part of its package, the ECB said it would offer more generous loans to banks so they can keep lending to small businesses. And it will buy €120 billion ($134.8 billion) in additional bonds this year, supplementing €20 billion in existing monthly purchases ($22.5 billion).

The announcement, which was made following a scheduled meeting in Frankfurt, comes after the US Federal Reserve and the Bank of England both slashed interest rates by half a percentage point in emergency sessions, citing the risks the coronavirus poses to economic activity.

The moves have done little to placate nervous investors, who have kept selling risky assets at a rapid clip as panic grows.

Years of low interest rates and bond buying have left central banks with limited ammunition to deploy, restraining what policymakers can do should the crisis deepen and increasing pressure on individual governments to boost spending.

Yet even tax cuts and other stimulus measures are imperfect tools to combat the economic hit from the coronavirus, which has shuttered factories and depressed demand as people around the world hunker down and face restrictions on their movements.

"While these measures are pretty substantial, we do not think the ECB will be able to change investor sentiment any more than the Fed could last week," said Andrew Kenningham, chief Europe economist at Capital Economics. "What matters for the economy is the trajectory of the virus itself and the measures which national authorities take to contain it."

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2020-03-12 14:25:15Z
CAIiEKo3072mhNdxjPT2IsnKAjMqGQgEKhAIACoHCAowocv1CjCSptoCMPrTpgU

Dow Drops 1600 Points, Stocks In Meltdown Over Trump's Coronavirus Plan - NPR

Enlarge this image

After weeks of turmoil over the economic toll of the coronavirus, U.S. stock indexes entered a bear market, signaling an end to their 11-year winning streak. Jeenah Moon/Getty Images hide caption

toggle caption

Jeenah Moon/Getty Images

Updated at 10:17 a.m. ET

The stock market continued its relentless, breathtaking drop Thursday — moving deeper into bear territory — with major U.S. indexes sinking as much as 8%. Stocks fell so fast, it triggered a 15-minute halt in trading for the second time this week.

The Dow Jones Industrial Average was down more than 2,100 points, or 7.8%. The S&P 500 fell 7.5% and the Nasdaq was down 6.5%.

Those indexes are now down more than 25% from record highs set just last month.

The market tumble came hours after President Trump announced a 30-day ban on travel from European countries to the United States.

Trump said it was an effort to stem the spread of the coronavirus, but the move caused confusion on both sides of the Atlantic and drew skepticism from several health experts.

Thursday's drop followed a nearly 6% percent plunge in the Dow on Wednesday, when the blue chip index entered a bear market, defined as falling 20% from its peak. The S&P 500 is now also in a bear market, ending an 11-year winning streak.

Trading was also halted briefly on Monday after the S&P 500 fell 7%, triggering automatic circuit breakers. The Dow lost 2,013 points on that day.

In addition to the travel ban, Trump also announced measures to overcome "temporary economic disruptions" caused by the disease. The proposals include a $50 billion program to provide low-interest loans to small businesses affected by the coronavirus.

Congressional Democrats also unveiled a legislative stimulus package aimed at easing the economic damage. Their plan includes expanded unemployment reimbursement for states, extra money for food security for low-income children and federally funded family and sick leave for people affected by the virus.

The coronavirus pandemic has had far-reaching and quickly developing economic impacts.

Thursday morning, Princess Cruises, which has had several ships hit by coronavirus outbreaks, announced it will pause operations of its 18 cruise ships globally for 60 days. The move is in response "to the unpredictable circumstances evolving from the global spread of COVID-19," the company said.

The airline industry has also been hard hit by travel cancelations and travel restrictions. "I would say we're in the middle of a very significant impact, some would say devastating impact, to the airline industry," JetBlue CEO Robin Hayes told NPR.

Wednesday night, the NBA suspended the rest of its season after a player on the Utah Jazz preliminarily tested positive for the coronavirus.

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2020-03-12 14:02:38Z
52780661379394

Stock Markets Diving After Trump Sets Coronavirus Plan, Europe Travel Ban - NPR

Enlarge this image

After weeks of turmoil over the economic toll of the coronavirus, U.S. stock indexes entered a bear market, signaling an end to their 11-year winning streak. Jeenah Moon/Getty Images hide caption

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Jeenah Moon/Getty Images

Updated at 9:42 a.m. ET

The stock market continued its relentless drop Thursday — moving deeper into bear territory — hours after President Trump announced a 30-day ban on travel from European countries to the United States.

Trump said it was an effort to stem the spread of the coronavirus, but the move caused confusion on both sides of the Atlantic and drew skepticism from several health experts.

The Dow Jones Industrial Average opened down more than 1,600 points — a 7% plunge that pushed the blue chip index deeper into a bear market. The S&P 500 also fell 7%, triggering a temporary trading halt — the second one this week.

That follows a nearly 6% percent plunge in the Dow on Wednesday, when the blue chip index entered a bear market after falling 20% from its record high in February. The S&P 500 is now also in a bear market, ending an 11-year winning streak.

Trading was also halted briefly on Monday after the S&P 500 fell 7%, triggering automatic circuit breakers. The Dow lost 2,013 points on that day.

In addition to the travel ban, Trump also announced measures to overcome "temporary economic disruptions" caused by the disease. The proposals include a $50 billion program to provide low-interest loans to small businesses affected by the coronavirus.

Congressional Democrats also unveiled a legislative stimulus package aimed at easing the economic damage. Their plan includes expanded unemployment reimbursement for states, extra money for food security for low-income children and federally funded family and sick leave for people affected by the virus.

The coronavirus pandemic has had far-reaching and quickly developing economic impacts.

Thursday morning, Princess Cruises, which has had several ships hit by coronavirus outbreaks, announced it will pause operations of its 18 cruise ships globally for 60 days. The move is in response "to the unpredictable circumstances evolving from the global spread of COVID-19," the company said.

The airline industry has also been hard hit by travel cancelations and travel restrictions. "I would say we're in the middle of a very significant impact, some would say devastating impact, to the airline industry," JetBlue CEO Robin Hayes told NPR.

Wednesday night, the NBA suspended the rest of its season after a player on the Utah Jazz preliminarily tested positive for the coronavirus.

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2020-03-12 13:38:47Z
CAIiEKI2tMaiPDbmjTt7fAEOUuUqFggEKg4IACoGCAow9vBNMK3UCDCvpUk

US producer prices post biggest drop in five years - CNBC

Engines assembled as they make their way through the assembly line at the General Motors (GM) manufacturing plant in Spring Hill, Tennessee, August 22, 2019.

Harrison McClary | Reuters

U.S. producer prices fell by the most in five years in February, pulled down by declines in the costs of goods such as gasoline and services.

The Labor Department said on Thursday its producer price index for final demand dropped 0.6% last month, the biggest decline since January 2015, after surging 0.5% in January.

In the 12 months through February, the PPI increased 1.3% after gaining 2.1% in January. Economists polled by Reuters had forecast the PPI dipping 0.1% in February and rising 1.8% on a year-on-year basis.

Excluding the volatile food, energy and trade services components, producer prices slipped 0.1%, the first drop since June, after climbing 0.4% in January. The so-called core PPI advanced 1.4% in the 12 months through February after rising 1.5% in January.

The report came on the heels of data on Wednesday showing a surprise rise in consumer prices in February and steady increase in underlying inflation. But the signs of some inflation in the economy are likely short-lived as the coronavirus pandemic suppresses demand for services like transportation, hotel accommodation, entertainment and recreation.

In addition, fears of a global recession because of the virus and an oil price war between Russia and Saudi Arabia have sent crude prices tumbling. This, together with weak demand for services is expected to offset price increases caused by bottlenecks in the supply chain.

The Federal Reserve tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index rose 1.6% on a year-on-year basis in January. It undershot its target in 2019. February's PCE price data will be published later this month.

In February, wholesale energy prices dropped 3.6% after falling 0.7% in January. They were weighed down by a 6.5% plunge in gasoline prices, which followed a 1.5% decline in January. Gasoline accounted for nearly one-third of the drop in the cost of goods last month.

Goods prices tumbled 0.9% last month, the most since September 2015, after ticking up 0.1% in January. Wholesale food prices fell 1.6% in February after climbing 0.2% in the prior month. Core goods prices dipped 0.1% last month. They increased 0.3% in January.

The cost of services dropped 0.3% in February after rebounding 0.7% in January, the most since October 2018. There were decreases in the cost of airline tickets and hotel accommodation, which recorded its biggest decline since April 2009.

But the cost of healthcare services rose 0.2% last month after rising 0.6% in January. Portfolio management fees increased 0.3% after accelerating 2.3% in January. They could, however, take a hit from an ongoing sharp sell-off in the stock market.

Those healthcare and portfolio management costs feed into the core PCE price index.

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2020-03-12 12:32:00Z
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Stock market live updates: Sell-off deepens, trading halted, S&P 500 heads for bear market - CNBC

Traders work on the floor of the New York Stock Exchange (NYSE) on March 09, 2020 in New York City.

Spencer Platt | Getty Images

This is a live blog. Check back for updates.

9:14 am: S&P 500 ETF now down 7%

The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, is still trading in premarket, while futures on the Dow, the S&P 500 and Nasdaq-100 all traded at the so-called limit down threshold, off by 5%. The SPY is now down 7%. If the S&P 500 tanks the same amount when the markets open, a key "circuit breaker" will be triggered, resulting in a 15-minute halt in trading. — Li

9:04 am: Carnival shares fall further after trading re-starts

Shares of Carnival fell to more than 21% below Wednesday's closing price in premarket trading after announcing that its Princess Cruise Lines would pause its shipping operations for 60 days. Trading was halted shortly before the announcement. There have been confirmed cases of the coronavirus on multiple Princess ships. — Pound

8:58 am: ECB leaves interest rates unchanged, disappointing traders

The European Central Bank kept interest rates unchanged in its policy decision Thursday, despite market expectations for a reduction amid the coronavirus outbreak. The central bank did announce measures to support bank lending, and expanded its quantitative easing (QE) program by 120 billion euros ($135.28 billion). – Li

8:56 am: ETFs that track the S&P 500, Nasdaq-100 point to steeper losses

The SPDR S&P 500 Trust ETF SPY, which tracks the S&P 500 index and continues trading even if futures are halted, is now down more than 6.6%. The Invesco QQQ, which tracks the Nasdaq-100, is down more than 6.2%. This suggests that the Street is in for steeper losses than the 5% drop futures registered before reaching the so-called limit-down level. - Stevens

8:50 am: Dow's roller-coaster ride

On Wednesday the Dow closed 1,464 points lower. It was the 30-stock index's seventh 1,000-plus point swing in either direction over the last 13 trading sessions. - Stevens, Rattner

8:41 am: Nike shares tank after footwear imports from China plunge

8:40 am: Less than an hour before the open, here's where we stand

Stocks are set to plummet when the market opens in less than an hour. Earlier futures on the Dow, S&P 500 and Nasdaq-100 all dropped below 5%, which is the so-called limit down threshold. Once futures fall that much, exchanges halt trading of futures contracts, which acts as a floor for selling until regular trading resumes at the opening bell at 9:30 a.m. The SPDR S&P 500 Trust ETF (SPY), which tracks the S&P 500 index and continues trading even if futures are halted, is down 5.2%. - Stevens

8:26 am: Carnival Corp. halted due to news pending

Shares of cruise operator Carnival Corp. were halted for trading due to news pending. Earlier in premarket trading the stock dropped more than 15% as the coronavirus outbreak continues to hit the travel industry. The CDC has warned that those at higher risk, including older adults, should avoid cruise travel. Shares of carnival have lost more than half their value in the last month, falling just over 50%. - Stevens

8:21 am: El-Erian says stock market decline will reach 30% from highs, sees a recession on the horizon

The U.S. stock market will drop as much as 30% from last month's highs as global economies go into coronavirus-driven recessions, said Mohamed El-Erian, the chief economic advisor at Allianz, who correctly predicted earlier in the week the selling would continue until a bear market was reached. The former CEO of investment powerhouse Pimco said on CNBC's "Squawk Box" on Thursday that investors should not expect a quick recovery in stocks when a bottom is finally reached. "We are going into a global recession. We are going to see a spread of economic sudden stops," El-Erian said. "The trouble with economic sudden stops is it's not easy to restart an economy. You've got to get people to re-engage. You've got to coordinate the restart. The economic damage is going to last." - Stankiewicz

8:16 am: ETF that tracks the S&P 500 sheds 5.2% in premarket trading

The SPDR S&P 500 Trust ETF (SPY), which tracks the S&P 500, is down 5.2% during Thursday's premarket trading as the sell-off intensifies. The S&P 500 is on track to enter a bear market when trading begins. - Stevens

8:09 am: Boeing beating continues as futures point to 14.5% drop after Wednesday's 18% plummet

Industrials crown jewel Boeing was on track Thursday morning to open more than 14% below where it closed on Wednesday, adding to its whopping 49% decline over the last six months. Boeing equity on Wednesday suffered its worst day on Wall Street since 1974 — an 18% plunge — after the planemaker said it was immediately suspending hiring and imposing measures to conserve cash.The company, already grappling with the fallout of two fatal crashes of its 737 Max craft, came under additional pressure over night after President Donald Trump said the U.S. will ban travelers from Europe for 30 days starting on Friday in an effort to curb the spread of the novel coronavirus. — Franck

8:07 am: The market may trigger a 'circuit breaker' for a second time this week

The brutal sell-off in the futures market Thursday signaled a so-called circuit breaker could be triggered when the markets open. A market trading halt may occur at "three circuit breaker thresholds" on the S&P 500 due to large declines and volatility, which helps keep stocks from a free fall. If the S&P 500 drops 7%, trading will pause for 15 minutes. Just on Monday, trading was halted temporarily minutes into the opening bell. The S&P 500 ended up suffering its worst day since the financial crisis at the beginning of the week. - Li

7:55 am: Airline stocks sink as Trump institutes travel ban

Airline stocks were under pressure in Thursday's premarket trading after President Trump imposed a 30-day ban on foreigners arriving from most of Europe. American Airlines and United Airlines were both down more than 15%, while Delta Air Lines slid 13%. Travel stocks have gotten slammed as the coronavirus outbreak has hit demand. – Stevens

7:45 am: CME Group to close Chicago trading floor as a precaution due to coronavirus

CME Group announced Wednesday night it will close its Chicago trading floor in a precautionary move due to the coronavirus pandemic. The closing will take effect Friday "at the close of business," CME said in a statement, noting that no coronavirus cases have been reported at the Chicago Board of Trade trading floor. This would make CME the first major U.S. exchange to close a trading floor due to concerns over the coronavirus. – Fitzgerald

7:43 am: S&P 500 poised to join Dow in bear market territory as futures hint at 4.7% slide

Futures contracts tied to the S&P 500 showed that the major market index is on track to join the Dow in bear market territory at the opening of trade on Thursday. Though an official bear market is determined on a closing basis, the S&P 500 is on track to slide 4.7% based on premarket futures trading. That would put the index 22.88% below its record close of 3,386.15 hit on Feb. 19.

The Dow, meanwhile, is poised to fall further into a bear market one day after its historic, 11-year bull market run came to an end on Wednesday. Futures showed the blue-chip index on track to dive 1,200 points, or 5%, at the opening bell. — Franck

7:40 am: Trump addresses the nation on Wednesday night

President Donald Trump gave a speech on Wednesday evening, announcing a ban on travelers to the United States from Europe, in an attempt to stem the spread of the coronavirus pandemic. The ban is in place for the next 30 days. Trump also announced that he would ask Congress for legislative action to provide payroll tax relief, as well as other measures for several groups impacted by the virus. In addition to legislation, Trump said he would instruct the Small Business Administration to "provide capital and liquidity" to small businesses. - Fitzgerald

7:36 am: Tom Hanks and Rita Wilson test positive for coronavirus

Academy Award-winning actor Tom Hanks and his wife Rita Wilson have tested positive for the coronavirus, Hanks said Wednesday. "Hello, folks. Rita and I are down here in Australia," he wrote. "We felt a bit tired, like we had colds, and some body aches. Rita had some chills that came and went. Slight fevers too. To play things right, as is needed in the world right now, we were tested for the Coronavirus, and were found to be positive." Hanks and Wilson are in Australia for the pre-production of a Warner Bros. film. – Fitzgerald

7:35 am: Trump speech disappoints markets

Investors were left wanting more robust fiscal stimulus measures after President Donald Trump's speech Wednesday night. Trump said the administration would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined. But Tom Essaye, founder of The Sevens Report, said none of the measures announced "are a silver bullet for coronavirus, and as such the market is reacting with short term disappointment." Ernie Tedeschi of Evercore ISI said Trump didn't "offer up major new ideas on stimulus and only said he'd propose a vague payroll tax holiday to Congress without strongly standing up for any firm size/magnitude." —Imbert

7:32 am: NBA suspends season due to coronavirus

The National Basketball Association on Wednesday night suspended its season indefinitely after a Utah Jazz player tested positive for the new coronavirus. "The NBA is suspending game play following the conclusion of [Wednesday night's] schedule of games until further notice," the league said in a statement. "The NBA will use this hiatus to determine next steps for moving forward in regard to the coronavirus pandemic." The National Hockey League said that it is "continuing to consult with medical experts and is evaluating the options" for its ongoing season. – Fitzgerald

7:05 am: Stock futures tank, Dow set to fall 1,100 points

U.S. stock futures are pointing to steep losses at the open, one day after the Dow Jones Industrial Average fell into a bear market. The 30-stock index is set to drop 1,080 points when stocks open on Wall Street for a loss of 4.6%. The S&P 500 is set to open down 4.3%, while the Nasdaq is on track to drop 4.5%. 

Based on that decline, the S&P 500 will join the Dow in bear market territory.

The leg lower comes after President Donald Trump failed to assuage fears of a potential economic slowdown during a speech on Wednesday night. As futures sold off, the Dow, S&P 500 and Nasdaq-100 all hit the so-called limit down threshold at one point, off by more than 5%, before paring those losses slightly.

On Wednesday, the Dow ended its historic 11-year bull market run by closing in bear-market territory. A bear market marks a 20% decline from all-time highs. - Stevens

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2020-03-12 13:06:13Z
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Stock market live updates: Sell-off deepens, trading halted, S&P 500 heads for bear market - CNBC

Traders work on the floor of the New York Stock Exchange (NYSE) on March 09, 2020 in New York City.

Spencer Platt | Getty Images

This is a live blog. Check back for updates.

8:41 am: Nike shares tank after footwear imports from China plunge

8:40 am: Less than an hour before the open, here's where we stand

Stocks are set to plummet when the market opens in less than an hour. Earlier futures on the Dow, S&P 500 and Nasdaq-100 all dropped below 5%, which is the so-called limit down threshold. Once futures fall that much, exchanges halt trading of futures contracts, which acts as a floor for selling until regular trading resumes at the opening bell at 9:30 a.m. The SPDR S&P 500 Trust ETF (SPY), which tracks the S&P 500 index and continues trading even if futures are halted, is down 5.2%. - Stevens

8:26 am: Carnival Corp. halted due to news pending

Shares of cruise operator Carnival Corp. were halted for trading due to news pending. Earlier in premarket trading the stock dropped more than 15% as the coronavirus outbreak continues to hit the travel industry. The CDC has warned that those at higher risk, including older adults, should avoid cruise travel. Shares of carnival have lost more than half their value in the last month, falling just over 50%. - Stevens

8:21 am: El-Erian says stock market decline will reach 30% from highs, sees a recession on the horizon

The U.S. stock market will drop as much as 30% from last month's highs as global economies go into coronavirus-driven recessions, said Mohamed El-Erian, the chief economic advisor at Allianz, who correctly predicted earlier in the week the selling would continue until a bear market was reached. The former CEO of investment powerhouse Pimco said on CNBC's "Squawk Box" on Thursday that investors should not expect a quick recovery in stocks when a bottom is finally reached. "We are going into a global recession. We are going to see a spread of economic sudden stops," El-Erian said. "The trouble with economic sudden stops is it's not easy to restart an economy. You've got to get people to re-engage. You've got to coordinate the restart. The economic damage is going to last." - Stankiewicz

8:16 am: ETF that tracks the S&P 500 sheds 5.2% in premarket trading

The SPDR S&P 500 Trust ETF (SPY), which tracks the S&P 500, is down 5.2% during Thursday's premarket trading as the sell-off intensifies. The S&P 500 is on track to enter a bear market when trading begins. - Stevens

8:09 am: Boeing beating continues as futures point to 14.5% drop after Wednesday's 18% plummet

Industrials crown jewel Boeing was on track Thursday morning to open more than 14% below where it closed on Wednesday, adding to its whopping 49% decline over the last six months. Boeing equity on Wednesday suffered its worst day on Wall Street since 1974 — an 18% plunge — after the planemaker said it was immediately suspending hiring and imposing measures to conserve cash.The company, already grappling with the fallout of two fatal crashes of its 737 Max craft, came under additional pressure over night after President Donald Trump said the U.S. will ban travelers from Europe for 30 days starting on Friday in an effort to curb the spread of the novel coronavirus. — Franck

8:07 am: The market may trigger a 'circuit breaker' for a second time this week

The brutal sell-off in the futures market Thursday signaled a so-called circuit breaker could be triggered when the markets open. A market trading halt may occur at "three circuit breaker thresholds" on the S&P 500 due to large declines and volatility, which helps keep stocks from a free fall. If the S&P 500 drops 7%, trading will pause for 15 minutes. Just on Monday, trading was halted temporarily minutes into the opening bell. The S&P 500 ended up suffering its worst day since the financial crisis at the beginning of the week. - Li

7:55 am: Airline stocks sink as Trump institutes travel ban

Airline stocks were under pressure in Thursday's premarket trading after President Trump imposed a 30-day ban on foreigners arriving from most of Europe. American Airlines and United Airlines were both down more than 15%, while Delta Air Lines slid 13%. Travel stocks have gotten slammed as the coronavirus outbreak has hit demand. – Stevens

7:45 am: CME Group to close Chicago trading floor as a precaution due to coronavirus

CME Group announced Wednesday night it will close its Chicago trading floor in a precautionary move due to the coronavirus pandemic. The closing will take effect Friday "at the close of business," CME said in a statement, noting that no coronavirus cases have been reported at the Chicago Board of Trade trading floor. This would make CME the first major U.S. exchange to close a trading floor due to concerns over the coronavirus. – Fitzgerald

7:43 am: S&P 500 poised to join Dow in bear market territory as futures hint at 4.7% slide

Futures contracts tied to the S&P 500 showed that the major market index is on track to join the Dow in bear market territory at the opening of trade on Thursday. Though an official bear market is determined on a closing basis, the S&P 500 is on track to slide 4.7% based on premarket futures trading. That would put the index 22.88% below its record close of 3,386.15 hit on Feb. 19.

The Dow, meanwhile, is poised to fall further into a bear market one day after its historic, 11-year bull market run came to an end on Wednesday. Futures showed the blue-chip index on track to dive 1,200 points, or 5%, at the opening bell. — Franck

7:40 am: Trump addresses the nation on Wednesday night

President Donald Trump gave a speech on Wednesday evening, announcing a ban on travelers to the United States from Europe, in an attempt to stem the spread of the coronavirus pandemic. The ban is in place for the next 30 days. Trump also announced that he would ask Congress for legislative action to provide payroll tax relief, as well as other measures for several groups impacted by the virus. In addition to legislation, Trump said he would instruct the Small Business Administration to "provide capital and liquidity" to small businesses. - Fitzgerald

7:36 am: Tom Hanks and Rita Wilson test positive for coronavirus

Academy Award-winning actor Tom Hanks and his wife Rita Wilson have tested positive for the coronavirus, Hanks said Wednesday. "Hello, folks. Rita and I are down here in Australia," he wrote. "We felt a bit tired, like we had colds, and some body aches. Rita had some chills that came and went. Slight fevers too. To play things right, as is needed in the world right now, we were tested for the Coronavirus, and were found to be positive." Hanks and Wilson are in Australia for the pre-production of a Warner Bros. film. – Fitzgerald

7:35 am: Trump speech disappoints markets

Investors were left wanting more robust fiscal stimulus measures after President Donald Trump's speech Wednesday night. Trump said the administration would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined. But Tom Essaye, founder of The Sevens Report, said none of the measures announced "are a silver bullet for coronavirus, and as such the market is reacting with short term disappointment." Ernie Tedeschi of Evercore ISI said Trump didn't "offer up major new ideas on stimulus and only said he'd propose a vague payroll tax holiday to Congress without strongly standing up for any firm size/magnitude." —Imbert

7:32 am: NBA suspends season due to coronavirus

The National Basketball Association on Wednesday night suspended its season indefinitely after a Utah Jazz player tested positive for the new coronavirus. "The NBA is suspending game play following the conclusion of [Wednesday night's] schedule of games until further notice," the league said in a statement. "The NBA will use this hiatus to determine next steps for moving forward in regard to the coronavirus pandemic." The National Hockey League said that it is "continuing to consult with medical experts and is evaluating the options" for its ongoing season. – Fitzgerald

7:05 am: Stock futures tank, Dow set to fall 1,100 points

U.S. stock futures are pointing to steep losses at the open, one day after the Dow Jones Industrial Average fell into a bear market. The 30-stock index is set to drop 1,080 points when stocks open on Wall Street for a loss of 4.6%. The S&P 500 is set to open down 4.3%, while the Nasdaq is on track to drop 4.5%. 

Based on that decline, the S&P 500 will join the Dow in bear market territory.

The leg lower comes after President Donald Trump failed to assuage fears of a potential economic slowdown during a speech on Wednesday night. As futures sold off, the Dow, S&P 500 and Nasdaq-100 all hit the so-called limit down threshold at one point, off by more than 5%, before paring those losses slightly.

On Wednesday, the Dow ended its historic 11-year bull market run by closing in bear-market territory. A bear market marks a 20% decline from all-time highs. - Stevens

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2020-03-12 12:30:30Z
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