Dow futures point to opening drop of 1,300 points, Treasury yields plunge amid oil price war


Olde Hornet

Well-Known Member
First and second quarter earnings will be impacted by coronavirus. Supermarkets, providers of disinfectants and other should benefit and others should benefit, the energy sector, travel sector and live entertainment sectors will be hit.
 

Olde Hornet

Well-Known Member
Stock futures drop — hit ‘limit down’ — even as Fed slashes rates; S&P 500 ETF down 10%


Stock futures were down sharply on Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.

Stock market futures hit “limit down” levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets. No prices can trade below that threshold, only at higher prices than that down 5% limit.

Dow Jones Industrial Average futures were off by more than 1,000 points, triggering the limit down level. S&P 500 and Nasdaq 100 futures were also at their downside limits.
 

Olde Hornet

Well-Known Member
El-Erian blasts Fed, saying it should have been ‘laser-focused’ on market failures and cut rates later
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https://www.cnbc.com/2020/03/16/el-...-should-have-cut-rates-after-other-moves.html
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Economist Mohamed El-Erian said Monday the Federal Reserve wasted a large part of its monetary policy arsenal to fight the economic fallout of the coronavirus by doing things backward.

“There’s a problem with both what the Fed did and what the Fed did not do. As result of that, ... you saw that clearly in how the futures traded,” the Allianz chief economic advisor said on CNBC’s “Squawk Box.”

U.S. stock futures were “limit down” 5% on Monday morning despite the Fed’s extraordinary announcement Sunday of a massive monetary stimulus campaign and an interest rate cut to zero. The exchange-traded fund that tracks the S&P 500, which has no mechanism to curb downside, was off more than 9%.

“We should have been more laser-like focused on areas of market failures ... and then followed up with more general interest rate cuts when that can have an impact,” El-Erian argued, stressing that lowering rates and making loans cheaper won’t change the spending behavior of consumers who are not leaving their homes.
 

Mace

Well-Known Member
Fed toolbox is getting close to empty! Shaping up to be a Bloody Monday Morning with Circuit Breakers going off everywhere!
 

Olde Hornet

Well-Known Member
Dow drops nearly 3,000 points, as coronavirus collapse continues; worst day since ’87


Stocks fell sharply Monday — with the Dow suffering its worst day since the “Black Monday” market crash in 1987 and its third-worst day ever — even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.

The Dow Jones Industrial Average closed 2,997.10 points lower, or 12.9%, at 20,188.52. The 30-stock Dow was briefly down more than 3,000 points in the final minutes of trading. The S&P 500 dropped 12% to 2,386.13 — hitting its lowest level since December 2018 — while the Nasdaq Composite closed 12.3% lower at 6,904.59 in its worst day ever.

“The markets are getting no break with yesterday’s historic Fed actions and COVID-19 dominating the world’s headlines,” Frank Cappelleri, executive director at Instinet, said in a note. “While the news continues to worsen and with the price action doing things we’ve only seen a handful of other times in the last century, it’s nearly impossible to keep things in perspective.”
 

Olde Hornet

Well-Known Member
I hope members here are watching CNBC right now: 12:45 eastern - i hope they post his transcript! Get ready!!!

BILL ACKMAN!
 

Olde Hornet

Well-Known Member
The big 3 are shutting down production!

Delta - 2 Billion dollar loss in revenue!

Market halted.
 
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Olde Hornet

Well-Known Member
Goldman sees unprecedented stop in economic activity, with 2nd quarter GDP contracting 24%.
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https://www.cnbc.com/2020/03/20/gol...2nd-quarter-gdp-contracting-by-24percent.html

Goldman Sachs economists on Friday forecast an unprecedented 24% decline in second quarter gross domestic product, following a 6% decline in the first quarter, based on the economy’s sudden and historic shutdown as the country responds to the coronavirus pandemic.

The economists then expect a bounce back of 12% in the third quarter and 10% in the fourth quarter, but unemployment will surge to 9%. They also expect GDP to contract by 3.8% for the full year on an annual average basis, and 3.1% on a fourth quarter over fourth quarter basis.

Just five days ago, Goldman economists had expected the economy to trough with a decline of 5% in the second quarter after a flat first quarter. They had expected a resurgence in the second half and full year growth of 0.4%.
 

Olde Hornet

Well-Known Member
El-Erian: ‘Pockets of value’ emerging in market but only for investors with high risk tolerance


The stock market’s steep decline over the last month has now created opportunities for investors who can stomach risk, economist Mohamed El-Erian said Monday.

“Those people who entered this defensively and have a massive appetite for volatility, there is starting to be real pockets of value, and they should be looking at that,” the chief economic advisor at Allianz said on CNBC’s “Squawk Box.”

But El-Erian added that “for most investors, I think you still want to be cautious out there.” That’s a theme he’s been driving home since early last month.
 

Olde Hornet

Well-Known Member
El-Erian: ‘We’re not in an all clear’ for stock index buying, but the sell ‘everything’ moment has passed


Investors should be buying individual stocks, not indexes, as there is still more coronavirus-driven market volatility ahead, economist Mohamed El-Erian said Monday.

“If you feel it’s the all clear, go out and buy the index ... I don’t think we’re there yet,” the chief economic advisor at Allianz said on CNBC’s “Squawk Box.” “We’re not in an all clear.”

El-Erian, former CEO of investment giant Pimco, said he felt the time of “selling everything” passed a few weeks ago but the “all clear” moment is not here yet. It is now a moment for being selective both in what investors buy and sell, he said.
 

SIR_GRAM

Legend
Me on here: Man, Millenials were given such a bad hand when it was our time, man it’s just so messed up that we got this end of the stick no one else got.

Other posters on here:
Man all you have to do is start your own business, man you got to do this step, that step, stop complaining. You know you must be doing something wrong.... let me tell you that Generations X, Y , and Baby boomers encountered the same thing, and we got through it.... etc etc
 

JROCK

Preeminent
Note to self: Everything bad only affects Millenials. Covid-19 is a diseased man-made concoction to set Millenials back even more. The current economy is the crucifixion of Millenials but in this case, there will be no resurrection for them....LOL We no longer believe the "chilen" are the future....LOL
 

Olde Hornet

Well-Known Member
El-Erian says he wouldn’t buy into market yet, but offers a plan for those who feel they must


Points
  • Mohamed El-Erian said Wednesday he would be hesitant to put cash to work, arguing the stock market is still on a downward trend.
  • However, the Allianz chief economic advisor offered a roadmap for investors who want to add to their portfolios during the coronavirus crisis.
  • “Whatever cash you have, divide it over five installments,” El-Erian told CNBC, suggesting dollar cost averaging into the market over several months.
Mohamed El-Erian said Wednesday he would be hesitant to put cash to work, arguing the stock market is still on a downward trend due to the coronavirus pandemic.

But he offered a roadmap for investors who feel inclined to add to their portfolios.

“Whatever cash you have, divide it over five installments,” El-Erian said on CNBC’s “Squawk Box,” suggesting dollar cost averaging into the market over several months.
 

levarg

The Elite BRAVE
Well unemployed have hit 4.4% this could have been avoided had 45 took this virus seriously
 

Rated R Superstar

Well-Known Member
Well unemployed have hit 4.4% this could have been avoided had 45 took this virus seriously
Not to defend Trump, but nobody in the world was prepared for this. Countries that were believed to have had a handle on the virus are now reverting back to locking down their countries again. There isn't anything any government in the world can really do at this point. There will be some mitigation of infections and spread, but until there is a vaccine or cure, it's going to be really hard to contain.
 

Olde Hornet

Well-Known Member
Not to defend Trump, but nobody in the world was prepared for this. Countries that were believed to have had a handle on the virus are now reverting back to locking down their countries again. There isn't anything any government in the world can really do at this point. There will be some mitigation of infections and spread, but until there is a vaccine or cure, it's going to be really hard to contain.
People like to say we are the greatest country in the world, but we did not prepare, we are a third world country with a third world leader. There are countries that did prepare and react properly - South Korea for example. Agent orange is using this as a political weapon. the networks and local stations are providing him a daily platform for his campaign rallies. I personally prepared, when I read what was going on in China. A former British spy said you dont close of major cities for the amount of deaths and sickness that the Chinese reported. Thats when I prepared. Agent Orange knew what was coming, he was informed even though he lied today about his knowledge.

So competent governments did prepare. Check out whats going on in Germany as well, the failures are western countries that have failed leadership.
 
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