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Dow below 20,000, Boeing drops 20%

by drbyos

Traders work during the opening bell on the New York Stock Exchange (NYSE) on March 16, 2020 on Wall Street in New York City.

Johannes Eisele | AFP | Getty Images

This is a live blog. Check for updates

10:58 am: stocks get help from Fed announcement

After the Federal Reserve announced that it will move to help small businesses get short-term funding, stocks have been on a buoyant boost. The Dow has risen by over 150 points in volatile trading. Nasdaq and S&P 500 both increased by around 2%. – Fitzgerald

10:50 am: Fed to provide short-term financing in the commercial paper market

The Federal Reserve said Tuesday that it is providing help to companies that are having difficulty obtaining the short-term financing they need to operate. The bank announced a special credit line for purchasing corporate card from issuers who had difficulty finding buyers in the open market. The company card provides for unsecured short-term loans. The one-day facility will involve a three-month document for eligible companies. The cost will be the swap rate on the three-month overnight index plus 200 points. – Cox

10:33: biotechnology companies that beat the market

While the market in general struggled to rebound from Monday’s deep losses, a handful of biotech companies posted double-digit returns. Germany-based BioNTech rose nearly 61% on Tuesday after stating that it had partnered with Pfizer to develop a coronavirus vaccine. Modern surpassed 12%, while Regeneron rose more than 10% after the company said it wanted to start human clinical trials of a coronavirus drug in early summer. – Li, Francolla

10:32 am: Analysts highlight defensive stocks like Walmart and P&G in Tuesday’s major calls

  • Oppenheimer updated Walmart to outperform
  • Deutsche Bank updated Procter & Gamble to buy from the suspension.
  • Needham started Zoom as a purchase.
  • Evercore ISI updated Pepsi to outperform from online.
  • Bernstein updated JD.com to outperform the market.
  • MKM has updated Boston Beer to purchase it as a neutral.
  • MKM has updated Electronic Arts to purchase neutral.
  • Cowen has upgraded Square to outperform the market.
  • Bank of America has downgraded Royal Caribbean to underperform neutral.
  • Wedbush added Facebook, Amazon and Peloton to the list of best ideas.

Read the full analyst calls of the day here. –flowering

10:30 am: Boeing stocks drop 20% due to worsening aircraft manufacturer slide

The crown jewel of American industrialists Boeing dropped another 20% on Tuesday, adding an astonishing slide for the aircraft manufacturer in recent months. The sell-off comes the day after Boeing says it is in talks with the Trump administration on potential aid and others in its supply chain as the new coronavirus hits the travel industry. The airline was already facing the consequences of two fatal accidents on its 737 Max plane, which has been grounded worldwide since 2019. The price of equity Boeing has fallen 72% in the past six months. – Franck

10:25 am: Fed announces another $ 500 billion deal for overnight repurchase financing markets

The Federal Reserve continues to provide support for short-term bank financing as it will establish another $ 500 billion repurchase operation on Tuesday afternoon. In the latest deal, the Fed will take another step in addition to a similar offer on Monday. The central bank’s New York trading desk aimed to clamp down on disruptions in overnight lending markets where banks need to get operating capital. –helmsman

10:23: Amazon stock rises by more than 3%

Amazon shares rose 3.8% in Tuesday morning trading. The e-commerce giant has said it plans to hire another 100,000 warehouse workers and delivery workers amid an increase in online orders due to the coronavirus epidemic. The company is also increasing wages for warehouse workers and delivery personnel for $ 2 an hour in the United States until the end of April. On Saturday, Amazon said that some brands in the “household items” category were out of stock and warned that some of its “delivery promises are longer than usual”. – Palmer, Li

10:20 am: Homebuilder’s sentiment subsides as the coronavirus begins to take into consideration

A monthly measure of house builders’ sentiment only partially reflected the growing economic effects of coronavirus. Sentiment dropped 2 points to 72 in March, according to the National Association of Home Builders / Wells Fargo Housing housing market index. Sentiment levels have remained in a narrow range between the mid and mid-1970s over the past six months. Anything above 50 is considered positive. –Olick

10:07 am: Tesla’s stock drops below $ 420

Tesla’s shares fell below the infamous $ 420 level at the start of Tuesday’s trading, just three months after hitting that mark for the first time. The price has become notorious for Tesla’s shares, since CEO Elon Musk tweeted in August 2018 that he had obtained “guaranteed funding” to make the company private at that level. Musk later agreed on an agreement with the SEC on the statement after the regulator sought to prevent Musk from holding leadership positions in any publicly traded company. – Sheetz

10:06 am: Trump administration wants $ 850 billion stimulus plan, reports say

Treasury secretary Steven Mnuchin visits Capitol today to discuss a third coronavirus response package with Senate Republicans as politicians try to avoid economic calamity. The Trump administration wants a $ 850 billion economic stimulus plan, Politico and The Washington Post report. The White House proposal is expected to include around $ 50 billion in aid to an airline industry hit by the global pandemic, according to Swiss Post. Congress has already paid $ 8.3 billion in emergency funding to help stop the spread of coronavirus disease. This week, a separate program to expand paid leave allowances, increase unemployment insurance and make tests more affordable is going through the Capitol. –Pramuk

10:01: Shares in red, Dow below 20,000

The shares renounced all their earnings within 30 minutes of the opening bell. The industrial average of Dow Jones has fallen below 20,000 for the first time since February 2017. The average of 30 stocks has fallen by around 200 points. The S&P 500 and the Nasdaq also turned negative. – Fitzgerald

9:58: VIX reaches another historic high

Wall Street fear is Cboe’s volatility index, known as VIX, which hit another all-time high of 83.94 on Tuesday morning in the midst of wild trading. During the huge sell-off on Monday, the VIX blew nearly 25 points, or nearly 43%, to close at a record high of 82.69, surpassing the peak level of 80.74 during the financial crisis. The VIX, which tracks the S&P 500’s implied 30-day volatility, more than doubled in March alone. The index examines option prices on the S&P 500 to track the level of fear on Wall Street. – There

9:50: Regeneron reaches 52 weeks of hope in the coronavirus drug

Stocks of biotechnology company Regeneron hit a new 52-week high of $ 503.20 per share on Tuesday after the company said it intended to prepare doses of a potential drug for COVID-19 ready to begin human clinical trials. early summer. Regeneron’s shares were last traded around 9%. –Fitzgerald

9:47: parts of the McDonald crisis after the closure of the dining room

McDonald’s is asking its US franchisees to close their dining rooms as the company responds to the outbreak of the coronavirus. The fast-food giant also plans to close the dining rooms at the company’s headquarters in the United States. Customers will be able to order take-away or delivery food and drinks or via the drive-thru. McDonald’s owns approximately 5% of its approximately 14,000 U.S. restaurants. McDonald’s shares fell nearly 6% in morning trading. –There

9:43: shares seem to earn shortly after opening

The stocks quickly lost their earnings on Tuesday, with the Dow briefly plunging into negative territory. The average dropped 100 points in less than 15 minutes after the opening bell, but last time it traded over 100 points. The S&P 500 and the Nasdaq have remained in the green but have also reduced earnings. – Fitzgerald

9:30 am: Actions open in the green, Dow up 400 points

Stocks have attempted a worst-day rebound since 1987, with all three major averages open in positive territory on Tuesday. The industrial average of Dow Jones rose 410 points, or 2%. The S&P 500 rose 2.2% and the Nasdaq jumped 2.2%. – Fitzgerald

9:15: retail sales declined in February

Retail sales in the United States declined 0.5% in February, lacking analyst expectations of a 0.2% increase, according to Reuters estimates. The January data, however, have been revised upwards. For the month, sales increased by 0.6%. Previous reports had shown an acceleration of 0.3%. – Stevens

9:03: These are the rough headlines “social distance,” says Piper Sandler

Piper Sandler has identified a basket of “social distancing” actions that he believes are destined to outperform as people stay indoors and work from home in an attempt to stop the spread of COVID-19. “We are all in an unexplored territory like this global movement the health crisis is eradicating the way we go every day, our workflow and our social interactions, “said the company in a recent note to customers, claiming to favor companies that offer restaurant services. , entertainment and work at home, as well as retailers with a strong e-commerce presence. The list includes names like Kellogg and Zoom Video. CNBC Pro subscribers can read more here. – Stevens

8:38: Morgan Stanley expects a global recession this year

Company chief economist Chetan Ahya told investors that “a global recession in 2020 is now our base case.” Morgan Stanley said that the coronavirus pandemic is fundamentally upsetting the world economy, predicting the lowest global economic growth “from the global financial crisis”. – Sheetz

8:30 am: The Treasury generates a rebound only on sight

Treasury yields rose somewhat on Tuesday morning as investors sought more details on the fiscal stimulus from the Trump administration to combat the fallout of the coronavirus. The yield on the 10-year Treasury note increased by just five basis points to 0.77% after falling 23 basis points in the previous session. The yield on the 30-year Treasury bond rose slightly to 1.36%. Bond yields move inversely relative to prices. “There will come a stage in the process where the lows will eventually be set and efforts will be made to bring the market back to a semblance of normality,” said Ian Lyngen, BMO’s US tariffs manager. “It is unclear whether investors have entered this stage, while the reverberations of monetary policy continue to make their way through the system.” – There

7:37: Tech titans cancel more than $ 1 trillion in the market sell-off

So-called “MAGA” stocks – or Microsoft, Apple, Amazon and Google-parent Alphabet – wiped $ 1.3 trillion in value from their February high during the market’s largest sell-off. Microsoft was the hardest hit, losing around $ 405.2 billion. Apple canceled about $ 371.8 billion, while Alphabet lost $ 311.1 billion. Amazon has lost $ 239.4 billion. With recent losses, only Apple and Microsoft are now valued at over $ 1 trillion. – Stevens

7:31: Nordstrom says it will close U.S. stores, suspending 2020 guidelines

Nordstrom has said it will close 364 of its stores in an attempt to curb the spread of the coronavirus. Due to continuing uncertainty over the long-term impact of the virus, the retailer also suspended the earnings outlook for 2020. Nordstrom said it had experienced “a generalized slowdown in customer demand in the past two weeks, particularly in the markets. most affected by the virus. ” The stock has lost more than half its value this year after losing 58%. Shares remained stable during Tuesday’s premier market trades. – Stevens, Thomas

7:14: Cramer claims that wild future swings are “a total joke”

Stock futures were on an unbridled run towards Tuesday’s opening on Wall Street, questioning the reliability of pre-market trading as an indicator of the situation. Overnight futures have been “limited” at some point in a situation where trading has stopped because they have achieved a 5% gain and cannot go higher. However, shortly before 6:30 the markets reversed and were negative at some point. They then shot higher again shortly thereafter and recently indicated a big gain. Looking at the huge swings, CNBC’s Jim Cramer said futures are losing their reliability and are “a complete joke”. “Don’t even look at them. You can’t have a bull market at 3:30 in the morning and end it by 7 in the morning,” said the host “Mad Money”. –helmsman

7:05: Regeneron speeds up the history of coronavirus drugs

Pharmaceutical company Regeneron said Tuesday that it is speeding up its coronavirus drug, with the potential to run tests in early summer. Antibody therapy has the potential to be preventive from the virus and treat active cases. The share of the biotechnology company grew by more than 13% in trading on the premier market on Tuesday. – Fitzgerald

7:00: stocks set to rebound

Stock futures rebounded Tuesday after the third worst day in Dow Jones’ industrial media history. Dow Jones Industrial Average futures indicated an implicit opening of over 600 points. The S&P 500 and the Nasdaq were also on the rise.

The rebound comes after the Dow and S&P 500 experienced their worst day after the 1987 “Black Monday” slump despite Federal Reserve rate cuts and easing actions. The Dow has lost nearly 13%, the third-worst one-day drop in history. The S&P 500 lost 12%. The Nasdaq Composite had the biggest one-day dip ever, plunging 12.3%. – Fitzgerald

– with reports from Jeff Cox and Michael Sheetz of CNBC.

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