A trader works on the floor of the New York Stock Exchange in New York, the United States, on March 18, 2020.
Michael Nagle | Xinhua News Agency | Getty Images
8:10: Fed announces unlimited purchases of assets
The Federal Reserve said Monday that it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis. Initiatives include a commitment to continue its asset purchase program “in the amounts necessary to support the smooth functioning of the market and the effective transmission of monetary policy under broader financial conditions and to the economy”. Others include a $ 300 billion loan program for Main Street operations and the term loan guarantee instrument implemented during the financial crisis. The Fed also said it will purchase commercial mortgage-backed securities as part of an expansion of its asset purchases, known on the market as quantitative easing. Stock futures reduced losses after Fed announcement. – helmsman
8:00 am: Coronavirus stimulus bill fails in Senate key procedural vote
A funding package to combat the economic impact of coronavirus did not get enough votes in a key Senate procedural vote on Sunday evening after Democratic leaders warned that the bill did too much to save the companies and not enough to save the companies. help workers. The final vote count was 47-47, well below the 60 votes needed to advance the bill. Republicans hold a majority of 53-47 in the chamber, although several GOP senators were not present to vote due to the isolation of the coronavirus.
House president Nancy Pelosi said Democrats will present their bill. President Trump expressed optimism that lawmakers will eventually reach an agreement.
Aperture Investors founder and CEO Peter Kraus said on CNBC’s “Squawk Box” Monday that he recalled that the Senate had not approved the first TARP bill during the financial crisis and that the market collapsed. “There will be 2 to 3 million jobless Americans. I think there are both Republicans and Democrats in that crowd. We have to approve an account,” said Kraus. – Fitzgerald
7:59: the volatility index increases with the start of the week
Cboe’s volatility index rose approximately 6 points on Monday morning to exceed 70. The index, which measures the implied volatility in trading S&P 500 options, hit record highs last week but closed at 66 on Friday, 04. – Pound
7:57: 3M shares rise after the company said that mask production has doubled
Shares in the 3M industrial conglomerate rose in primary market negotiations after its CEO said the company doubled global N95 respirator production to around 100 million a month. CEO Mike Roman said on Sunday that the company expects 3M to almost double its capacity again within the next 12 months and is coordinating with the United States government to explore other manufacturing activities, including hand sanitizers and disinfectants. “As a global company, we also manufacture respirators in Europe, Asia and Latin America, and our products are distributed similarly to support the COVID-19 response in their respective regions,” said Roman. – Franck
7:54: Boeing arises after Goldman’s brave update
Boeing’s shares rose 2.5% in premier market negotiations on Monday after Goldman Sachs updated the US aircraft manufacturer to buy from neutrals, claiming that the airline has enough money to recover and that travel demand aircraft will return to normal once the coronavirus crisis ends.
“We think Boeing will remain an ongoing concern,” Goldman analyst Noah Poponak said in a statement on Sunday. “We think that air travel will be more popular than ever once COVID-19 is resolved. Therefore we think that BA’s shares should be purchased at the current price … Substantial price prevalence, while long-term secular growth is intact.”
So far, Boeing has plunged 70% in 2020, making it the worst S&P 500 with a market capitalization of $ 50 billion, Goldman noted. On Friday, Boeing said it would cancel the CEO’s salary, suspend its dividend and extend a pause on stock repurchases amid the pandemic. It is pursuing $ 60 billion in U.S. government aid to the aerospace industry, including loan guarantees. – There
7:45 am: Oil prolongs drops after the worst week since 1991
Oil prices fell on Monday, extending the recent losses that saw US West Texas intermediate crude post its worst week since 1991. On Monday, the WTI lost 1.86% to $ 22.21 a barrel, while the international Brent benchmark fell 6% to $ 25.36 a barrel. On a volatile trading day, the WTI initially dropped by 6%, then recovered those losses to turn positive before falling again.
Prices have gone down as the coronavirus epidemic has slowed down travel and business around the world, just as power plant manufacturers Saudi Arabia and Russia are preparing to increase production. WTI crude futures were cut in half this month. The rapid drop in crude oil prices is wreaking havoc on the financial markets, forcing investors to sell other assets such as treasury bonds or stocks indiscriminately to cover losses in their energy positions. – Stevens
7:10: stocks are about to fall, Dow futures are down 500
Markets were expected to decline openly on Monday as investors waited for an economic stimulus and a bailout from the United States government to combat coronavirus damage. A fiscal stimulus bill failed a Senate key procedural vote on Sunday, sending shares lower. Dow Jones Industrial Average futures lost over 500 points. S&P 500 futures have fallen by almost 3%. Nasdaq 100 futures declined 2.6%. Futures were well below the worst levels of the night session, where they reached “limited” levels, falling by 5%.
Last week, stocks underwent the biggest decline in a week since the 2008 financial crisis, with the S&P 500 falling by more than 13%. These losses placed the broad market average of more than 32% below the record set on February 19. –Fitzgerald
– with the report of Thomas Franck of CNBC, Jesse Pound and Jeff Cox.
Sign up for CNBC PRO for in-depth analysis and exclusive analysis and programming of working days live from all over the world.