Stock Market Today: Wall Street Attempts Rebound From The Dow’s Third-Worst Day Ever

Stock futures and premarket trading in exchange-traded funds pointed to a bounce on Tuesday following the Dow Jones Industrial average’s third-worst day ever.

Trading overnight, however, was very volatile with futures giving back more than 1,000 points as investors try to weigh the uncertain economic impact of the coronavirus outbreak.

Around 6:14 a.m. ET, Dow Jones Industrial Average futures indicated an implied open of more than 400 points. The S&P 500 SPDR ETF gained more than 2% in premarket trading.

Earlier in the session, futures contracts tied to the S&P 500, Dow Jones Industrial Average and Nasdaq 100 hit their upside limit, triggering a halt. In non-U.S. trading hours, stock futures are halted if they hit their downside or upside limits, pinning those contracts to their upper or lower bounds. The halt is meant to ensure that opening trade is orderly and not emotional.




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Those moves came after President Donald Trump tweeted: “The United States will be powerfully supporting those industries, like Airlines and others, that are particularly affected by the Chinese Virus. We will be stronger than ever before!”

The Dow Jones Industrial Average and S&P 500 had their worst day since the “ Black Monday” crash of 1987 , falling 12.9% and 12%, respectively. It was also the Dow’s third-worst day ever. The Nasdaq Composite had its biggest one-day plunge ever, tumbling 12.3%.

Trading halts typically occur amid extremely abnormal market volatility.

The Cboe Volatility Index — Wall Street’s preferred fear gauge — posted its highest-ever close at 82.69 . That tops the financial crisis’ peak of 80.74.

Wall Street’s drop came even after the Federal Reserve slashed interest rates to near-zero on Sunday and announced a $750 billion asset-purchasing program. It also came as the number of coronavirus cases jumped in the U.S.

At least 4,281 cases have been confirmed in the U.S. along with more than 70 deaths, according to data from Johns Hopkins University. President Donald Trump also said the crisis could stretch into August, adding the administration may look at locking down “certain areas.”

“Although the contemporary crisis is loaded with bad news, this has not been its primary problem. It’s the ‘unknown,’” said Jim Paulsen, chief investment strategist at The Leuthold Group, in a note. “Not even health experts understand what this is or where it is headed, and that is the worst possible outcome for investors.”

“Give me bad news any day over complete uncertainty,” he said.

The S&P 500 closed Monday at its lowest level since December 2018. The Dow ended the session at its levels not seen since early 2017.

“For now until there is improvement in the trend … it’s tough to consider being long and it’s right to be in Cash on the sidelines,” Mark Newton, managing member at Newton Advisors, said in a note to clients.



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Wall Street Sees Worst Drop Since 1987

U.S. stock markets fell the most since 1987 in early trading on Monday, having been suspended, limit down, almost immediately after trading started, as the shutdown of increasing swathes of public life in the U.S. brought home the scale of the coronavirus outbreak.

By 9:50 AM ET (1350 GMT), the Dow Jones Industrial Average was down 2,773 points or 12% at 20,393 points. The S&P 500 was indicated down 10.7% and the Nasdaq Composite was down 11.5%.





Investors weren’t reassured by the emergency measures taken on Sunday night by the Federal Reserve, which cut the target range for fed funds to near zero and signalled $700 billion in asset purchases to keep financial markets orderly.

The Fed also said it would extend the availability of dollars internationally through swap facilities with other central banks.

“The Fed has pulled out all the stops. But in the end the underlying driver of this crisis is very different from 2008/9, i.e. this is about COVID-19,” said Robin Brooks, an economist with the Institute for International Finance in Washington, DC. “That means the Fed can alleviate the symptoms, but it’s unreasonable to expect the crisis to go away on Fed action.”

Earlier on Sunday, Treasury Secretary Steven Mnuchin urged investors to look beyond the short-term hit to the economy, telling CNBC that “There will be a huge amount of pent up demand when this is done. And it will be done.”

However, Mnuchin also warned that “the goal is not to bail out companies,” a line that appeared to raise the risk of near-term bankruptcies, especially in the transport and oil sectors.

Among the worst hit were airline stocks. United Airlines stock fell over 15% after saying it would slash capacity by 50%, while Delta Air Lines (NYSE:DAL) stock and American Airlines (NASDAQ:AAL) stock also fell heavily after the Trump administration expanded restrictions on arrivals from Europe to include the key routes serving London and Dublin.

Apple (NASDAQ:AAPL) stock fell as much as 13% before rebounding to be down only 9.7% after the company said it will shut all its stores outside China. It was also hit by a $1.2 billion antitrust fine in France.

Oil and gas stocks tumbled again as crude prices fell below $30 a barrel and U.S. gasoline prices fell to an all-time low of 69 cents a gallon.

Banks were also badly hit, as the Fed’s action threatened to crush lending margins without, at least in the short term, supporting income from currency and securities markets. Bank of America (NYSE:BAC) stock fell 14.6%, while JPMorgan (NYSE:JPM) stock fell 15.1% and Citigroup (NYSE:C) stock fell 19.7%.


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Casino operators MGM Resorts (NYSE:MGM) and Wynn Resorts (NASDAQ:WYNN) also both fell after the pair announced they would temporarily close their casinos in Las Vegas, essentially putting much of the famous strip under lockdown.



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Red October – Wall Street Falls on Persistent Trade War Concerns

StockMarketNews.TodayWall Street tumbled on Tuesday after reports that the White House is moving ahead on possible curbs to capital flows in China stirred up fresh concerns that a trade deal between the two countries won’t happen.

The Dow slumped 263 points or 1% by 9:40 AM ET (13:40 GMT), while the S&P 500 was down 30 points or 1.1% and the Nasdaq composite lost 77 points or 1%.


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The two sides are scheduled for high-level trade talks this week. Yesterday after the U.S. blacklisted 28 Chinese entities, including surveillance camera maker Hikvision, for their role in China’s repression of Muslim minorities.

Meanwhile, the White House is in talks around restrictions focused on investments made by U.S. government pension funds, according to a Bloomberg report.

“I don’t think there’s really much hope that we are going to see a completed deal any time soon,” said Scott Brown, chief economist at Raymond James. “For markets, it may be enough to just see a stop in the escalation.”


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Boeing (NYSE:BA) was down 1.5% on a Wall Street Journal report that the European Aviation Safety Agency refused to accept FAA assurances that Boeing’s Max 737 are safe.

Domino’s Pizza (NYSE:DPZ) dipped 4.2% after a decline in same-store sales, while Oracle (NYSE:ORCL) fell 1% after reports that it is hiring 2,000 workers. Ambarella (NASDAQ:AMBA) tumbled 9.4% after the blacklisting of Hikvision Digital Technology, one of its biggest customers.


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In commodities, the U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 98.662 and gold futures rose 0.6% to $1,512.85 a troy ounce. Crude oil futures fell 13% to $52.09 a barrel.





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Wall Street: Strong Retail Sales Data


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• Business & Financial News – Stock Market News Today • 


— U.S. stocks tried to bounce back on Thursday from a steep selloff a day earlier, as strong retails sales data and upbeat Walmart (WMT) earnings eased concerns of a recession, but mixed signals on trade and Cisco‘s dismal forecast capped gains.

Recession fears have gripped the market after the U.S. Treasury yield curve inverted for the first time in 12 years on Wednesday on growing worries about the impact of a bruising trade war on global growth.

However, a Commerce Department report showed a much better-than-expected rise in July retail sales as consumers bought a range of goods even as they cut back on motor vehicle purchases.


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“Data still indicates that the consumer is in a relatively good shape, it points to the fact that even with an inverted yield curve that we saw yesterday, a recession is not coming so fast,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“The trade news is not linear. It’s very hard to guess what the next step is going to be and it’s impacting companies like Cisco, so the longer the trade issue lingers, the harder it is going be for companies to show top- and bottom-line growth.”

Cisco Systems Inc (CSCO) dropped 7% and was the biggest drag on all three major indexes, after the Dow component blamed the bruising U.S.-China trade war for poor quarterly forecasts.

China’s finance ministry said earlier in the day that it would retaliate to the latest U.S. tariffs, spooking markets initially. However, a spokeswoman for the ministry later said, “We hope the U.S. will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka.”

Walmart Inc shares rose 4.3% after the retailer reported second-quarter U.S. comparable sales that beat estimates and boosted its earnings forecast for the year.

The company’s strong report lifted the consumer staples sector up 1.5%, which gave the biggest boost to the market.

At 12:14 p.m. ET, the Dow Jones Industrial Average was up 112.05 points, or 0.44%, at 25,591.47, the S&P 500 was up 11.95 points, or 0.42%, at 2,852.55. The Nasdaq Composite was up 13.38 points, or 0.17%, at 7,787.31.

The benchmark S&P 500 is about 6% away from an all-time high hit in July.

General Electric (GE) plunged as much as 15.3%, and was on pace to post its biggest one-day drop in a decade, after a whistleblower in the Bernard Madoff Ponzi scheme case alleged that company financial filings masked the depths of its problems.


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Advancing issues outnumbered decliners by a 1.48-to-1 ratio on the NYSE and by a 1.05-to-1 ratio on the Nasdaq. The S&P index recorded five new 52-week highs and 47 new lows, while the Nasdaq recorded 15 new highs and 204 new lows.



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