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10:40: ETF on emerging markets on track for the worst month since 2008
10:35 am: Walmart jumps 5%, gets an update from Credit Suisse
As the broader market subsides, Walmart’s shares have risen by more than 5% as Credit Suisse updated the stock to a higher performance on Wednesday. “We see this unfortunate period accelerating structural changes in consumer purchases, perhaps over 5 years, when they are introduced to new retailers and new purchasing methods,” said the company. Credit Suisse raised its earnings estimates for the full year 2021, saying that the multi-channel retailer will benefit from a jump in online shopping and delivery, among other things. – Stevens
10:24 am: Market returns a little, Dow now drops 950 points
Shares rebounded slightly from their steep initial losses. The Dow traded around 950 points lower after plummeting to 1,365 points at its lowest. The S&P 500 fell 4% after closing 5.6% outdoors. The Wall Street fear indicator, the Cboe Volatility Index, known as VIX, fell 6% to around 71, after hitting a record high of 82.69 on Monday. – L
9:48: Bernanke, Yellen urge the Fed to buy corporate bonds
Former Federal Reserve presidents Ben Bernanke and Janet Yellen are urging the central bank to purchase corporate bonds. Although the authority to do goes beyond the central bank’s authority, it can get authorization from Congress. Bernanke and Yellen say this would “help restart” the “investment grade” part of the market that “is subject to severe coercion”. – Cox
9:46: investor Ackman says that Trump should close the United States, that markets “will go up”
Investor Bill Ackman advised President Donald Trump on Wednesday to close the United States for a month in an attempt to contain the new coronavirus and said that financial markets would mobilize in response to such decisive action. Ackman, who founded Pershing Square Capital Management, invited the president to close the nation’s borders and offer Americans a month’s rent, interest and tax holidays. “The moment you send everyone home for the spring break and close the borders, the infection rate will drop, the stock market will rise and the clouds will rise,” wrote the hedge fund manager. – Franck
9:40: Deutsche sees US GDP drop by 13%
The US economy will contract 13% in the second quarter due to the coronavirus pandemic, Deutsche Bank said in a new forecast. Such a marked drop would be “significantly beyond the range of modern historical experiences,” said the company, and would be the largest “to date back at least to World War II.” – Sheetz
9:39: the circuit breakers may be activated again
Wild swings continued to drag Wall Street on Wednesday, with the S&P 500 dropping more than 5% outdoors. This week the market is likely to trigger so-called breakers for the second time. According to the New York Stock Exchange, a market crash could occur at “three cutoff thresholds” on the S&P 500 due to sharp drops and volatility. The exchange classifies it to three levels based on the close of the previous session in the S&P 500.
The rules, which apply only to normal trading hours, are as follows:
Level 1: if the S&P 500 drops by 7%, the negotiation will stop for 15 minutes.
Level 2: if the S&P 500 drops 13%, the trading will stop again for 15 minutes if the drop occurs by 3:25 pm or before ET.
Level 3: if the S&P 500 falls by 20%, trades would stop for the rest of the day. A level 3 violation can be triggered at any time. – There
9:31: Dow’s reservoirs are 1,300 outdoor spots
The Dow Jones Industrial Average collapsed 1,300 points outdoors, while the S&P 500 fell more than 5%, threatening to trigger a market breaker for the second time in just three days. If the S&P 500 drops by 7%, trading will stop for 15 minutes. – There
9:13: Boeing keeps up with the worst month ever
Boeing’s shares amassed another 20% in premier market trading on Wednesday, bringing its losses this month to a whopping 64%. The dive brought the aircraft manufacturer to the runway for its worst month in history. In addition to the aftermath of two fatal accidents on its 737 Max plane, Boeing has suffered a major blow from the outbreak of the coronavirus that disrupts global supply chains and the travel industry. The second worst month for the company was in September 2001, when the stock lost almost 35%. – Li, Francolla
8:51: the pound falls to its lowest level since 2016 against the dollar
The pound dipped below $ 1.19 on Wednesday to reach its lowest point since October 2016, as liquidity concerns have pushed the dollar up and hammered currencies around the world. The pound was down 1.5% on the session to reach $ 1.1873, its lowest level since a sudden overnight slump in October 2016 and below the levels seen following the Brexit referendum. –blacksmith
7:53: oil prices continue to fall, hitting lower levels since 2003
The price of oil continues to fall as the coronavirus pandemic leads to large economies that restrict movement within major cities and expectations of a recession are growing. West Texas International futures were down 5.8%, trading at $ 25.38 a barrel and hitting the lowest level since 2003. Futures for the Brent international benchmark have fallen by about 3.5% and are trading less than $ 28 a barrel. – Pound
7:51: Treasury yields load higher after the White House launched a $ 1 trillion stimulus plan
U.S. long-term debt yields continued to rise on Wednesday after Treasury Secretary Steven Mnuchin said the White House would like to see a $ 1 trillion stimulus package to help isolate the economy from a recession . The prospect of such a massive stimulus plan and a deluge of further US debt put pressure on Treasury prices and made the 10-year yield above 30 basis points on Tuesday. The 10-year rate, often used by banks as a benchmark for loans, went from around 0.65% on Monday to 1.11% at the last reading. – Franck
7:38: Regeneron raises hopes for the coronavirus drug
Shares in biotechnology company Regeneron rose nearly 2% in market negotiations before Wednesday, the day after the company said it wanted doses of a potential COVID-19 drug ready to begin clinical trials on man in early summer. The antibody is believed to be a treatment for the virus as well as a preventative drug. Regeneron’s shares rose more than 11% on Tuesday. – Fitzgerald
7:35: Coronavirus cases jump, worrying about Wall Street
A spike in coronavirus cases continues to worry investors, who are hoping for a government stimulus to compensate for the economic impacts of the virus. Coronavirus cases worldwide exceed 200,000 for the first time, according to data compiled by John Hopkins University. Italy has reported more than 2,500 virus deaths since Tuesday evening, according to the country’s ministry of health. The death toll from Iran’s coronavirus has risen to 1,135 with 147 new deaths in the past 24 hours, a Ministry of Health official reported on state television on Wednesday. The total number of infected people across the country reached 17,361. In addition, European leaders agreed on Tuesday to close the EU’s external borders for 30 days in a new effort to slow the spread of the coronavirus pandemic. Singapore, Hong Kong and Taiwan also reported an increase in cases. France, which has seen a sharp spike in cases in the past few weeks, said it could start seeing a slowdown in coronavirus infections in around 8-12 days after the government’s decision to block the country, said the health minister. Olivier Veran. –Fitzgerald
7:28: Gundlach says it is “ridiculous” to think that the United States is not entering a recession
Jeffrey Gundlach, CEO of DoubleLine Capital, believes that the United States will enter a recession with a 90% probability this year. The Bond King said his odds were 80% last week, but that while the coronavirus epidemic continues to halt travel and block businesses worldwide, he now stands at 90%. . However, Gundlach added that he had been progressively less negative on the market outlook given the scale of the federal government’s response. “I think you should stay liquid, I think you should wait for opportunities,” he said. “We all know that the stock market is very down. We know that the junk bond market is very down. … Will the market go back? Of course it will.” –Stevens
7:25: Dow futures indicate a drop of 1,000 points
US equity futures plummeted Wednesday, reaching their so-called downside limit, indicating a drop of around 5% for the main averages. Dow Jones Industrial Average futures fell 821 points, indicating a loss of 1.031 points on opening. The S&P 500 and Nasdaq 100 futures were also at the lower limit. Investors turned their eyes to ETFs which track key averages for a better indication of the open aspect. The SPDR S&P 500 ETF trust fund (SPY) fell 6.4% in the primary market. The SPDR Dow Jones Industrial Average ETF Trust (DIA) was trading 6.7% lower, while Invesco QQQ Trust lost 6.3%. These losses stem from a sharp reversal of the Treasury that generates nervous traders as they weighed a potential $ 1 trillion stimulus package.