Traders are trading on the New York Stock Exchange on February 25, 2020.
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10:22 a.m .: Dow down 2.5% as rate cuts hit banks, KRE breaks 52-week low
The Dow Jones Industrial Average and the S&P 500 fell about 2.5% in the first hour of trading as new demand for safer assets like US Treasuries kept pressure on rates in the whole world. This has kept the pressure on regional banks and consumers who, unlike investment banks, generate a significant portion of their profits by borrowing short-term funds and making longer-term loans at higher rates.
KRE, a popular publicly traded fund that tracks regional banks’ performance, fell 4.3% to a 52-week low. The M&T Bank, Truist Financial and PNC Financial components fell 5.5%, 6.4% and 4.4% respectively.
The latest pendulum on the market has returned to safer assets in the midst of a series of new titles on the spread of virulent coronavirus. Markets still fear that the disease will prevent large exporters, such as China, from sending components to American manufacturers and having a ripple effect on global growth. – Franck
10:10 a.m .: The regional banks’ ETF drops to its lowest level since January 2019
Bank stocks dominate the markets, the financial sector loses more than 4% at the start of the session. The KRE, which tracks regional banks, has reached its lowest level since January 2019, as investors fear that falling interest rates will put pressure on banks’ net interest margins. – Stevens
9:59 am: stocks accelerate losses early in the session, Dow loses 800 points
The recent episode of market volatility continues, with the Dow Jones now shrinking by more than 800 points, or 3%. The index has now returned more than half of its gains from Wednesday’s relief rally. – Stevens
9:52 a.m .: Bernstein cuts forecast for 2020
Bernstein lowered his price targets for airline stocks, telling investors that the declines go beyond the coronavirus epidemic. The firm warned that airline stocks “are becoming a call to global recession”, saying the market is now taking into account a recessionary effect on airline traffic loss for 2020. – Sheetz
9:49 a.m .: Index investing no longer works, says Cramer
Jim Cramer of CNBC said on Thursday that he thought investment in the indices had peaked, citing market volatility due to coronaviruses. “There is a huge percentage of the index that you can’t touch, and then there is another percentage of the index that is great,” he said on “Squawk on the Street”. “It’s back to stock selection.” Index funds, which have grown in popularity since the financial crisis, have been called “the savior,” but Cramer said they were in fact “the curse.” – Stankiewicz
9:45 a.m .: all major averages are back in correctional territory
With Thursday’s early declines, significant averages are back in correction territory, more than 10% below their recent highs. The Dow Jones Transportation Average is particularly affected and is approaching bearish territory. – Stevens, Francolla
9:38 am: Here are Thursday’s biggest analyst calls
- Citi launched Johnson & Johnson as a purchase.
- Deutsche Bank has upgraded Dollar Tree to buy pending.
- Bank of America added Lam Research to its “US 1 list”.
- Goldman Sachs upgraded FireEye to buy on neutral.
- Credit Suisse upgraded Campbell Soup from neutral to underperforming.
- Deutsche Bank added a catalyst purchase purchase to Ulta.
- MKM upgraded Snap to buy on neutral.
- HSBC raised its price target on Apple to $ 225 from $ 190.
- Stephens downgraded Zoom Video to match the weight of the overweight.
- Bank of America downgraded Moderna to purchase neutral.
CNBC PRO subscribers can find out more here. – Flowering
9:32 a.m .: Stocks drop at opening, Dow loses more than 700 points
Inventories fell on Thursday as the market roller coaster continues. The Dow Jones Industrial Average lost 701 points to a loss of 2.5%. The S&P 500 and Nasdaq fell 2.5% and 2.4% respectively. – Stevens
9:11 a.m .: 10-year Treasury yield of less than 1% as Wednesday’s optimism wanes
The yield on the 10-year Treasury benchmark fell below the key level of 1% on Thursday; the optimism that supported risky assets in the previous session succumbed to lingering fears about the coronavirus. The revived demand for safe havens like the US debt also boosted the yield on the 2-year note to a new record of 0.595%. Bond yields decline as their prices rise. – Franck, Francolla
9:06 am: the dollar falls to its lowest level in 2 months
The dollar index is trading near its session low of 96.904, its lowest level since January 8. The greenback fell to its lowest since October against the Japanese yen at 106.85. Record low yields and the prospect of further monetary easing triggered the dollar’s decline, while fears of coronaviruses boosted demand for yen refuge. – Li, Francolla
9:01 a.m .: Kroger’s shares rise thanks to solid profits
The grocery company’s shares rose 1% in pre-market trading Thursday after its quarterly profits, where they beat on the upper and lower earnings. Kroger reported earnings of 57 cents a share on revenue of $ 28.893 billion. Analysts had expected profit of 55 cents a share on revenue of $ 28.866 billion, according to Refinitiv. – Fitzgerald
8:59 a.m .: Marvell Technology surges in profits
The semiconductor company rose more than 7% in pre-market trade on Thursday after posting strong quarterly profits. According to Refinitiv, Marvell Technology posted a profit of 17 cents per share, exceeding estimates by one cent. Revenues totaled $ 718 million, beating the $ 711 million expected on the street. – Fitzgerald
8:39 a.m .: Stock futures extend losses as coronavirus cases increase
Equity futures have accelerated losses, and the Dow Jones is now expected to open more than 700 points. This decline comes as the number of coronavirus cases worldwide increases. California Governor Gavin Newsom declared a state of emergency on Wednesday following the first coronavirus death in the state. – Stevens
8:37 a.m .: Brokers Claim Fed Cash
Market demand has soared this week for the Federal Reserve’s liquidity operations in the overnight loan market, or repo. The New York Fed on Thursday saw major distributors submit $ 72.55 billion in bids for a $ 20 billion 14-day deal in a market that provides short-term plumbing for banking. It comes after participants submitted $ 111.5 billion in bids for a $ 100 billion day deal on Wednesday. On Tuesday, the Fed saw $ 108.6 billion for a $ 100 billion overnight offer, and just under $ 71 billion for a $ 20 billion 14-day deal. – Beetle
8:17 a.m .: utilities dominate all sectors this week
Utilities are the best performing S&P 500 sector this week, gaining 10.6%. The sector is considered defensive, as consumers will always need these services. In other words, these actions are not as sensitive to the broader economic cycle. Commodities and real estate also outperform, each gaining more than 9% this week, while health care rose 8%. This week’s relative underperformances were communications services and energy, which rose 3.7% and 1.9% respectively. Energy, finance and industry are the only three sectors that remain in correctional territory. – Stevens
8:07 a.m .: 66% of S&P 500 shares remain in correction territory
The S&P 500 gained 4.22% on Wednesday, but 66% of the components, or 333 shares, remained in correction territory or worse, that is to say when a title is 10% or more below its plus. recent high. Of the 333 stocks, 159 are trading in bear market territory, that is, when a stock is more than 20% below its recent peak. – Stevens
7:39 am: Airline stocks under pressure
The shares of the airlines were in the red during the exchanges before marketing on Thursday, as the epidemic of coronavirus and the slowdown in travel that followed continue to weigh on the sector. Delta Air Lines, American Airlines and Southwest Airlines all fell by more than 3%, while United Airlines and JetBlue Airways fell by more than 2%. The International Air Transport Association said it now sees loss of global coronavirus revenue for passenger airlines between 2020 and $ 63 billion. The previous IATA estimate estimated losses at $ 29.3 billion. – Stevens
7:12 a.m .: US equity futures point red in all areas
The recent episode of market volatility is expected to continue, with US equity futures pointing to widespread losses at the opening, a sharp reversal from Wednesday’s surge in stocks. The Dow Jones Industrial Average shows a drop of more than 500 points at the opening, a drop of just over 2%. The S&P 500 and the Nasdaq are also expected to open more than 2%.
On Wednesday, the markets surged. The Dow Jones gained 1,173 points for its second-highest point gain in history, and its second gain of more than 1,000 points in three sessions. The Dow Jones gain of 1,294 on Monday is the largest ever. Former Vice President Joe Biden’s solid performance on Super Tuesday helped boost stocks, as many on the street consider Biden’s policies more market-friendly than those of Senators Bernie Sanders and Elizabeth Warren. – Stevens
CNBC’s Yun Li, Thomas franck, Michael Bloom, Michael Sheetz, Kevin Stankiewicz and Gina Francolla contributed to the production of reports.
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