Morning Briefing
Next big date for another dose of negative market sentiment? March 31
A casual walk to the grocery store this morning revealed a number of small coffee vendors and noodle shops in my neighborhood had gone a step beyond New York City's order to close restaurants and bars and coffee shops except for take out and delivery orders. These...
Fed’s Sunday surprise sends stocks plunging; losses halved when trading resumes
The Federal Reserve's Sunday night "shock and awe" campaign--interest rates cut to 0% and $700 billion in bond buying--shocked stocks into a panic at the open Monday morning. With stocks down 11%, trading restrictions went into effect. When trading resumed, U.S....
Why the economic damage from the coronavirus slowdown could last through the end of 2020
Remember way back a couple of weeks ago. In February the consensus was that the slowdown in revenue and earnings from the coronavirus pandemic would last for the first quarter of 2020. Corporate guidance reflected that view with companies such as Nvidia (NVDA) telling...
Fed rides to the rescue–and stocks are still down almost 8% at 2:30 p.m. in New York
The Federal Reserve announced this morning that it would inject $1.5 trillion into short-term bank to bank lending markets today and tomorrow. The U.S. central bank will offer $500 billion in a three-month repo operation at 1:30 p.m. and repeat the exercise tomorrow,...
Stocks fall again as WHO declares coronavirus pandemic, White House fails to deliver stimulus plan–no place to hide outside of Treasuries and the yen
As of 1:45 p.m. in New York the Standard & Poor's 500 is down 4.62% and the Dow Jones Industrial Average is off 5.13%. The NASDAQ Composite is lower by 4.40% and the Russell 2000 small cap index, with its heavy load of smaller U.S. oil producers, has lost 5.23%....
Stock futures, oil plunge signal rout on Monday open in New York; Treasury yields plummet (some more)
Futures contracts on the Standard & Poor's 500 sank by their limit of 5% from the Friday price fix as of 10:11 p.m. in New York. By the rules of the Chicago Mercantile Exchange futures were pinned at the reference price from th final 30 minutes of trading on...
Credit markets are even uglier than stock markets
By now I assume you know that today was another brutal day for U.S. stocks (although markets moved up significantly in the last hour.) The Standard & Poor's 500 closed down another 1.71% and the Dow Jones Industrials dropped 0.98%. The NASDAQ Composite was lower...
S&P 500 gains 4.22% today–there’s a trend here but it’s not what you might think
The "explanation" for today's 4.22% gain in the S&P 500 and the 4.53% gain in the Dow Jones Industrial Average is that it's a reaction to the surprising victories by former Vice-President Joe Biden over Vermont Senator Bernie Sanders in last night's Super Tuesday...Oops!”Emergency” interest rate cut spurs U.S. stock sell off as Fed creates negative feedback loop
The U.S. Federal Reserve announced an "emergency" 50 basis point cut to its benchmark interest rate. The cut left the Fed benchmark with a range of 1% to 1.25%. The move comes ahead of the Fed's regular meeting on March 18. The interest rate cut, which usually...For another day, at least, financial markets continue to believe in central bank fairy dust
Financial markets moved higher on news that finance ministers and central bankers from the Group of Seven economies will hold a teleconference tomorrow, Tuesday, on how to respond to the coronavirus pandemic. The expectation is that central banks in Japan, England,...
Lesson for financial market sell off from California coronavirus bad news
News on Thursday that California was monitoring 8,400 people believed to have been exposed to the coronavirus was a major contributor to the afternoon collapse in U.S. stocks that sent the Standard & Poor's 50 down 4.42% for the day. And there's a very important...Jim’s Stock Alerts
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