Stocks hit a new coronavirus crisis on Wednesday as investors were concerned that the government’s response to the pandemic would not be enough. A market-level key circuit breaker was triggered for the second time in just three days as volatility continued to upset Wall Street. Here’s what happened:
5:31 pm: NYSE to temporarily close the floor, switch to e-commerce after positive coronavirus tests
The New York Stock Exchange said Wednesday that it will temporarily close its historic trading platform and completely switch to e-commerce after two people have tested positive for the coronavirus infection on the screenings it had set up this week.
All-electronic trading will begin outdoors on March 23, the exchange said. The shutdown was in part following two-person positive coronavirus tests, NYSE president Stacey Cunningham told CNBC. Participants were stopped at medical screenings at the Big Board. – There
16:30: sale of numbers
- Dow closed 6.3% after hitting a low of 18.917.46 the lowest level since November 21, 2016
- This month: the Dow dropped 21.69% from the worst month since October 1987, when the Dow lost 23.22%
- This year: Dow dropped 30.27% to its worst year since 2008, when the Dow lost 33.84%
- Dow is 32.7% lower than its historical intraday high of 29,568.57 on February 12th
- S&P closed 5.17% reaching a low of 2.280.52 the lowest level since February 2, 2017
- This month: the S&P fell 18.81%, in line with its worst month since October 1987, when the S&P lost 21.76%
- This year: S&P fell 25.76%, in line with its worst year since 2008, when the S&P lost 38.49%
- S&P is 29.32% lower than the historical intraday high of 3,393.52 since February 19
- Sectors: 11 sectors out of 11 were negative on Wednesday driven by energy, down by 14.24% – Francolla
4:15 pm: sentiment indicators don’t count now, says Josh Brown
Fear of coronavirus makes traditional measures of investor attitudes less relevant, said Josh Brown, CEO of Ritholtz Wealth Management, after Wednesday’s sell-off. “I no longer believe that feelings matter. I think of all those Investors Intelligence surveys: you can throw them out,” Brown said in “Closing Bell”, adding that investors were more focused on health problems and other aspects of the pandemic. “Many of the moves we’re seeing are based on people taking money from the market they think they have to live for,” said Brown. He added that news of successful coronavirus treatments could help the market recover. – Pound
16:09: six Dow titles close in the green
During Wednesday’s violent dip on the market, six Dow Jones Industrial Average stocks ended the day in positive territory. Walgreens Boots Alliance closed 6.5%, Cisco Systems grew 5.2%, Walmart rose 2.8%, and 3M rose 1.9%. Pfizer and Verizon both ended the day in less than 1%. – Fitzgerald
16:01: Dow closes 1,300 points
The stock market collapsed again as investors increasingly worried about the economic consequences of the coronavirus. The Dow ended the session more than 1,300 points lower, after plummeting down to 2,319 points at the session minimum. The S&P 500 fell 5.1% and the Nasdaq Composite fell 4.7%. The massive sell-off triggered a halt in afternoon trading, the second time in three days. – There
3:15 pm: Final trading time: stocks are looking for big losses again
With less than an hour to go, the main averages were headed for another sharp drop in concerns about the economic destruction of the coronavirus. The Dow fell by over 1,600 points, or 7.7%. The S&P 500 and the Nasdaq declined by more than 6% each. The main averages fell by more than 8% at the start of the day. –Imbert
15:09: Stifel CEO asks for immediate stimulus, says “the market needs certainty”
Congress leaders and the Trump administration must immediately enter into a fiscal stimulus deal and not fight over the details, said Ronald Kruszewski, Stifel president and CEO of “Power Lunch”. “We need the fiscal stimulus. I don’t care what the hell the plan is at some point. Make one announced. Whether it’s $ 1,000, $ 2,000, bailouts, whatever. The market needs certainty and action,” he said. called Kruszewski. “This is a message for Washington. Why we haven’t made a tax deal because there is some political partisanship is ridiculous. This has to be announced today,” he added. –Pound
14:42: Bill Miller calls this market one of the best shopping opportunities of his life
Investor Bill Miller said during Wednesday’s violent market dip that the current climate is one of the best buying opportunities of his life. “I think this is an exceptional shopping opportunity,” Miller said on CNBC’s “The Exchange” on Wednesday. While Miller was talking, trading was stopped because the S&P 500 dropped more than 7%, triggering the “1” level switch. – Fitzgerald
13:51: historic fall of Dow
13:49: decliners bring the anticipators from 30 to 1
More than 30 shares traded lower on the New York Stock Exchange on Wednesday for each share in progress as the sell-off from the coronavirus crisis hit a new low. In total, over 2,900 shares declined at the NYSE while 95 traded higher. –Imbert
13:34: shares drop to the minimum of the session with Dow down more than 2,000 points
Stock market losses increased in the afternoon, with the Dow losing 2,128 points for a 10% loss. The S&P 500 fell 9%, while the Nasdaq fell 8.3%. – Stevens
13:14: the shares resume trading
After a 15 minute shutdown, the shares are swapped again. The Dow is down 1,753 points, or 8.3%, while the S&P 500 and Nasdaq are down 7.3% and 6.7% respectively. – Stevens
13:04: Bill Ackman asks Trump to increase closures to save the economy: “Close now”
Longtime hedge fund manager Bill Ackman urged President Donald Trump to shut down the country for 30 days to contain the coronavirus, calling it the only option to save the economy. “What scares the American people and corporate America now is the gradual launch,” said Ackman on CNBC’s “Interval Report” Wednesday. “We have to close it now … This is the only answer.” “If he manages to save the country from the coronavirus, he will be re-elected,” said Ackman. – There
12:56 pm: trading stopped when S&P 500 lost 7%
The shares are halted for trading after the S&P 500 has dropped 7%, kicking off the level one “circuit”. – Stevens
12:30: natural gas prices drop to their lowest level in more than 24 years
Natural gas has fallen 7% today and has now traded at its lowest level since 20 September 1995. – Francolla, Stevens
11:50 am: markets at noon: equities collapse once again while volatility reigns supreme
Around noon, the major averages began to drop sharply once again as Wall Street continued its volatile streak during the coronavirus crisis. The industrial average of Dow Jones fell by over 1,300 points, or 6.3%. The S&P 500 and Nasdaq declined by 6% and 5% respectively. These losses offset a clear rebound from the previous session, which was triggered by hopes for a massive fiscal stimulus. –Imbert
11:43 am: Aerospace and defense supplies are at the worst month rate ever
The iShares US Aerospace & Defense ETF fell 41% in March, in line with its worst month ever since returning to its inception in 2006. The index is driven partly in part by Spirit Aerosystems, Boeing, TransDigm, all in line with their worst months ever.
- Spirit Aerosystems dropped nearly 68% this month, in line with its worst month ever returning to its IPO in 2006
- Boeing is down more than 62% this month, in line with its worst month ever until 1972
- TransDigm dropped nearly 57% this month, in line with its worst month ever returning to its IPO in 2006 – Francolla, Fitzgerald
11:35 am: amid market volatility, analysts say they buy these stocks: Zynga, Kroger, Hershey, Ralph Lauren and more
- Morgan Stanley has downgraded Coca-Cola and Monster Beverage to match the weight of the overweight.
- Bank of America updated Tesla to neutral from underperformed.
- Bank of America has downgraded Levi Strauss to neutral from the purchase.
- Bank of America updated Ralph Lauren to buy from neutral.
- Credit Suisse has updated Hershey to achieve a higher than neutral performance.
- Telsey has updated Kroger to outperform the market.
- Bernstein updated Campbell Soup, General Mills, Conagra Brands and Kellogg to perform on the market from underperforming.
- Oppenheimer started Zynga as outperformed.
- Oppenheimer started Sony as outperformed.
- Credit Suisse has named Constellation Brands the best choice.
- JPMorgan updated D.R. Overweight Horton from Lennar and PulteGroup neutral and downgraded to neutral from overweight.
- Credit Suisse has strengthened Walmart to outperform neutral.
- BTIG has updated Dunkin ‘Brands to buy neutral.
- Goldman Sachs added O’Reilly Automotive to the conviction purchase list.
- Barclays has downgraded American Airlines to match the weight of being overweight.
- Longbow has updated Domino’s to purchase it as a neutral.
- Nomura Instinet launched Stitch Fix and The RealReal as a purchase.
- UBS has strengthened Caterpillar to neutral with respect to the sale.
Read more about the analyst calls of the day here. – flowering
11:32: oil plunges from 16% to a minimum of over 18 years, in line with the worst month ever
Oil tumbled 16% to a low of more than 18 years on Wednesday as the coronavirus pandemic continues to ease crude oil demand and growing concerns about a global recession lead to fears of long-term demand destruction. United States West Texas intermediate crude fell 16.1%, or $ 4.35, to $ 22.60 per barrel. The international benchmark Brent slumped 9.4%, or $ 2.71, to trade at $ 26.02, its lowest level since 2003. Oil has been hit by both the supply and the demand side. A slowdown in travel and business activities around the world is weighing on demand, just as power plant manufacturers Saudi Arabia and Russia are preparing to increase production. – Stevens
11:15: Dow tanks 1,400 points
The sell-off deepened in late morning trading, with the Dow plunging over 1,400 points. The S&P fell 6%, threatening to trigger an automatic switch forced to trade. If the S&P 500 drops by 7%, trading will stop for 15 minutes.– There
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.