Stocks fall, Treasury yields slump amid ongoing coronavirus fears
Stocks fall, Treasury yields slump amid ongoing coronavirus fears
Emily McCormickandJavier E. DavidYahoo Finance•February 22, 2020
U.S. stocks fell Friday, adding to losses from the prior session as investors fled to safe haven assets including gold and Treasuries. Existing home sales data, IHS Markit’s February purchasing managers’ indices for the U.S. and coronavirus developments remained a focus for investors.
—
4:06 p.m. ET: Stocks post weekly losses, back-to-back sessions of declines
The three major U.S. indices ended the day and week lower Friday as investors rotated out of risk assets and into safe havens, sending gold prices and Treasuries higher. Earlier in the session, the 30-year Treasury yield hit an all-time low.
Declines in the Dow were led by shares of Microsoft and Apple, down 3% and 2%, respectively, during Friday’s session. The Information Technology and Consumer Discretionary sectors were the two worst performers in the S&P 500.
For the week, the Dow was off about 1.4%. The S&P 500 dropped about 1.2%, and the Nasdaq fell 1.6%.
Here’s where the markets settled at the end of regular equity trading:
S&P 500 (^GSPC): -1.05% or -35.48 points to 3,337.75
Dow (^DJI): -0.78% or -227.57 points to 28,992.41
Nasdaq (^IXIC): -1.79% or -174.37 points to 9,576.59
Crude oil (CL=F): -0.98% or -$0.53 to $53.35 a barrel
Gold (GC=F): +1.61% or +$26.10 to $1,646.60 per ounce
—
2:37 p.m. ET: Stocks hold lower as session rolls on
Stocks remained lower with less than 90 minutes left of the trading day. The S&P 500 and Nasdaq were each off more than 1% as big tech shares slid. Microsoft and Apple were the worst performers in the Dow.
Here were the main moves in markets, as of 2:37 p.m. ET:
S&P 500 (^GSPC): -1.17% or -39.34 points to 3,333.89
Dow (^DJI): -0.84% or -245.43 points to 28,974.64
Nasdaq (^IXIC): -1.97% or -192.61 points to 9,558.43
Crude oil (CL=F): -0.87% or -$0.47 to $53.41 a barrel
Gold (GC=F): +1.67% or +$27.00 to $1,647.50 per ounce
—
10:00 a.m. ET: Existing home sales decline less than expected in January
Existing home sales fell by 1.3% month on month to a seasonally adjusted annual rate of 5.46 million in January, the National Association of Realtors said Friday. This beat consensus economist expectations for a decline of 1.8% to a seasonally adjusted annual rate of 5.44 million expected. In December, existing home sales registered at 5.53 million.
In January, declines were led by a drop in sales of previously owned homes in the West. These fell 9.4% over December. Sales were little changed to flat in the Midwest, South and Northeast.
—
9:48 a.m. ET: 30-year U.S. Treasury yield hits all-time low
The 30-year U.S. Treasury yield sank more than 7 basis points Friday morning to an all-time low of 1.8904% as of 9:48 a.m. Friday morning, according to Bloomberg data, amid broad-based buying in U.S. government bonds. Yields were lower across the curve, and the yield on the 10-year note remained below that of the shorter-duration 3-month bill.
—
9:45 a.m. ET: IHS Markit U.S. composite purchasing managers’ index sinks to the lowest level since 2013
The U.S. flash composite purchasing managers’ index (PMI) dropped sharply below expectations and into contractionary territory in February, IHS Markit said Friday. The weakness was led by a slump in the U.S. services sector, as the coronavirus outbreak hit travel and tourism-related industries.
The composite PMI registered at 49.6 for February, coming in well below the print of 53.3 from January and marking the lowest level in seven years. Readings below the neutral level of 50 indicate contraction.
Within the composite print, the manufacturing PMI came in at a six-month low of 50.8, below expectations for 51.5.
The service sector PMI slumped to a more than six-year low of 49.4. Consensus economist had expected this to come in at 53.4, which would have matched January’s level.
Here’s what Chris Williamson, chief business economist at IHS Markit, had to say about the results, according to a statement:
With the exception of the government-shutdown of 2013, US business activity contracted for the first time since the global financial crisis in February. Weakness was primarily seen in the service sector, where the first drop in activity for four years was reported, but manufacturing production also ground almost to a halt due to a near-stalling of orders.
Total new orders fell for the first time in over a decade. The deterioration in was in part linked to the coronavirus outbreak, manifesting itself in weakened demand across sectors such as travel and tourism, as well as via falling exports and supply chain disruptions. However, companies also reported increased caution in respect to spending due to worries about a wider economic slowdown and uncertainty ahead of the presidential election later this year.
—
9:43 a.m. ET: Gold trades at seven-year high
Gold prices jumped more than 1%, or $21.80, Friday morning amid a flight to safe haven assets. At more than $1,640 an ounce, the precious metal was trading at its highest level since March 2013. Gold was on track for its best week in eight months as of intraday trading Friday.
INDIA
The crash of 2020
On 1 February 2020, as the FY 2020-21 Union budget was presented in the lower house of the Indian parliament, Nifty fell by over 3% (373.95 points) while Sensex fell by more than 2% (987.96 points). The fall was also weighed by the global breakdown amid Coronavirus outbreak centered in China.[31]
Sensex crashes 800 points, Nifty below 11,850: 10 updates
2 min read . Updated: 24 Feb 2020, 03:18 PM IST
Edited By Surajit Dasgupta
Global markets were also lower as coronavirus cases spiked outside China
The rupee fell sharply against US dollar today
Indian markets fell sharply today, tracking a decline in other global markets as corornavius cases spiked outside China. The Sensex tanked over 800 points to 40,328.53 while the broader Nifty50 index slid below 11,850. The rupee also weakened to about 2-month lows against the US dollar, falling to 71.90 against the US dollar. All the sectoral indices on NSE were in the red. The NSE metal index was down about 3.5% while banking and auto fell around 1% and 2% respectively.
Here are 10 updates from Indian markets:
1) Tata Steel, down 5.5%, was the biggest loser among the Sensex stocks while ONGC slumped 4%.
2) Among other major losers, Axis Bank, RIL, ITC, Hero MotoCorp, ICICI Bank, Bajaj Auto, Titan, HDFC, Bharti Airtel fell between 1.5% and 3%.
3) The broader markets were also under pressure with BSE midcap and smallcap indices falling over 1% each.
4) A surge of infections outside mainland China triggered steep fall in Asian markets today.
5) Wall Street stock futures were down over 600 points as investors fled to safe havens such as gold, which hit a seven-year high on Monday.
6) Elsewhere, Aurobindo Pharma Ltd dived 15% after the company said on Friday that US FDA inspection at its unit IV was still open and under review and that the 90-day voluntary action initiative letter issued last week was rescinded.
7) The India VIX index, commonly known as fear gauge, jumped 21% to 16.64, reflecting the nervousness among investors.
8) Oil prices plunged today while safe haven assets like gold rallied on growing concerns about the global spread of the deadly virus.
9) With the outbreak showing little sign of easing investors are increasingly concerned it could have a much longer term impact on the world economy, which was already stuttering, with a number of companies warning about their bottom lines.
10) On Monday, South Korea reported 161 more cases, taking its total to 763 and making it the world's worst hit country outside China, with seven people now dead. Meanwhile, China reported over 400 new cases of coronavirus. (With Agency Inputs)
Emily McCormickandJavier E. DavidYahoo Finance•February 22, 2020
U.S. stocks fell Friday, adding to losses from the prior session as investors fled to safe haven assets including gold and Treasuries. Existing home sales data, IHS Markit’s February purchasing managers’ indices for the U.S. and coronavirus developments remained a focus for investors.
—
4:06 p.m. ET: Stocks post weekly losses, back-to-back sessions of declines
The three major U.S. indices ended the day and week lower Friday as investors rotated out of risk assets and into safe havens, sending gold prices and Treasuries higher. Earlier in the session, the 30-year Treasury yield hit an all-time low.
Declines in the Dow were led by shares of Microsoft and Apple, down 3% and 2%, respectively, during Friday’s session. The Information Technology and Consumer Discretionary sectors were the two worst performers in the S&P 500.
For the week, the Dow was off about 1.4%. The S&P 500 dropped about 1.2%, and the Nasdaq fell 1.6%.
Here’s where the markets settled at the end of regular equity trading:
S&P 500 (^GSPC): -1.05% or -35.48 points to 3,337.75
Dow (^DJI): -0.78% or -227.57 points to 28,992.41
Nasdaq (^IXIC): -1.79% or -174.37 points to 9,576.59
Crude oil (CL=F): -0.98% or -$0.53 to $53.35 a barrel
Gold (GC=F): +1.61% or +$26.10 to $1,646.60 per ounce
—
2:37 p.m. ET: Stocks hold lower as session rolls on
Stocks remained lower with less than 90 minutes left of the trading day. The S&P 500 and Nasdaq were each off more than 1% as big tech shares slid. Microsoft and Apple were the worst performers in the Dow.
Here were the main moves in markets, as of 2:37 p.m. ET:
S&P 500 (^GSPC): -1.17% or -39.34 points to 3,333.89
Dow (^DJI): -0.84% or -245.43 points to 28,974.64
Nasdaq (^IXIC): -1.97% or -192.61 points to 9,558.43
Crude oil (CL=F): -0.87% or -$0.47 to $53.41 a barrel
Gold (GC=F): +1.67% or +$27.00 to $1,647.50 per ounce
—
10:00 a.m. ET: Existing home sales decline less than expected in January
Existing home sales fell by 1.3% month on month to a seasonally adjusted annual rate of 5.46 million in January, the National Association of Realtors said Friday. This beat consensus economist expectations for a decline of 1.8% to a seasonally adjusted annual rate of 5.44 million expected. In December, existing home sales registered at 5.53 million.
In January, declines were led by a drop in sales of previously owned homes in the West. These fell 9.4% over December. Sales were little changed to flat in the Midwest, South and Northeast.
—
9:48 a.m. ET: 30-year U.S. Treasury yield hits all-time low
The 30-year U.S. Treasury yield sank more than 7 basis points Friday morning to an all-time low of 1.8904% as of 9:48 a.m. Friday morning, according to Bloomberg data, amid broad-based buying in U.S. government bonds. Yields were lower across the curve, and the yield on the 10-year note remained below that of the shorter-duration 3-month bill.
—
9:45 a.m. ET: IHS Markit U.S. composite purchasing managers’ index sinks to the lowest level since 2013
The U.S. flash composite purchasing managers’ index (PMI) dropped sharply below expectations and into contractionary territory in February, IHS Markit said Friday. The weakness was led by a slump in the U.S. services sector, as the coronavirus outbreak hit travel and tourism-related industries.
The composite PMI registered at 49.6 for February, coming in well below the print of 53.3 from January and marking the lowest level in seven years. Readings below the neutral level of 50 indicate contraction.
Within the composite print, the manufacturing PMI came in at a six-month low of 50.8, below expectations for 51.5.
The service sector PMI slumped to a more than six-year low of 49.4. Consensus economist had expected this to come in at 53.4, which would have matched January’s level.
Here’s what Chris Williamson, chief business economist at IHS Markit, had to say about the results, according to a statement:
With the exception of the government-shutdown of 2013, US business activity contracted for the first time since the global financial crisis in February. Weakness was primarily seen in the service sector, where the first drop in activity for four years was reported, but manufacturing production also ground almost to a halt due to a near-stalling of orders.
Total new orders fell for the first time in over a decade. The deterioration in was in part linked to the coronavirus outbreak, manifesting itself in weakened demand across sectors such as travel and tourism, as well as via falling exports and supply chain disruptions. However, companies also reported increased caution in respect to spending due to worries about a wider economic slowdown and uncertainty ahead of the presidential election later this year.
—
9:43 a.m. ET: Gold trades at seven-year high
Gold prices jumped more than 1%, or $21.80, Friday morning amid a flight to safe haven assets. At more than $1,640 an ounce, the precious metal was trading at its highest level since March 2013. Gold was on track for its best week in eight months as of intraday trading Friday.
INDIA
The crash of 2020
On 1 February 2020, as the FY 2020-21 Union budget was presented in the lower house of the Indian parliament, Nifty fell by over 3% (373.95 points) while Sensex fell by more than 2% (987.96 points). The fall was also weighed by the global breakdown amid Coronavirus outbreak centered in China.[31]
Sensex crashes 800 points, Nifty below 11,850: 10 updates
2 min read . Updated: 24 Feb 2020, 03:18 PM IST
Edited By Surajit Dasgupta
Global markets were also lower as coronavirus cases spiked outside China
The rupee fell sharply against US dollar today
Indian markets fell sharply today, tracking a decline in other global markets as corornavius cases spiked outside China. The Sensex tanked over 800 points to 40,328.53 while the broader Nifty50 index slid below 11,850. The rupee also weakened to about 2-month lows against the US dollar, falling to 71.90 against the US dollar. All the sectoral indices on NSE were in the red. The NSE metal index was down about 3.5% while banking and auto fell around 1% and 2% respectively.
Here are 10 updates from Indian markets:
1) Tata Steel, down 5.5%, was the biggest loser among the Sensex stocks while ONGC slumped 4%.
2) Among other major losers, Axis Bank, RIL, ITC, Hero MotoCorp, ICICI Bank, Bajaj Auto, Titan, HDFC, Bharti Airtel fell between 1.5% and 3%.
3) The broader markets were also under pressure with BSE midcap and smallcap indices falling over 1% each.
4) A surge of infections outside mainland China triggered steep fall in Asian markets today.
5) Wall Street stock futures were down over 600 points as investors fled to safe havens such as gold, which hit a seven-year high on Monday.
6) Elsewhere, Aurobindo Pharma Ltd dived 15% after the company said on Friday that US FDA inspection at its unit IV was still open and under review and that the 90-day voluntary action initiative letter issued last week was rescinded.
7) The India VIX index, commonly known as fear gauge, jumped 21% to 16.64, reflecting the nervousness among investors.
8) Oil prices plunged today while safe haven assets like gold rallied on growing concerns about the global spread of the deadly virus.
9) With the outbreak showing little sign of easing investors are increasingly concerned it could have a much longer term impact on the world economy, which was already stuttering, with a number of companies warning about their bottom lines.
10) On Monday, South Korea reported 161 more cases, taking its total to 763 and making it the world's worst hit country outside China, with seven people now dead. Meanwhile, China reported over 400 new cases of coronavirus. (With Agency Inputs)
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