Why is the dow jones down so much today
US stocks fell sharply on Monday amid continued worry about the sweeping economic impact of the coronavirus pandemic. The Dow Jones industrial average slipped 9. Major US stock indexes extended losses in the final hour of trading as President Donald Trump hosted a coronavirus task force briefing. The market's negative reaction suggests traders aren't convinced the stimulus efforts announced by the Federal Reserve on Sunday will be enough to offset the economic harm of the coronavirus outbreak. Investors have been faced with an increasingly uncertain landscape as virus cases have spiked and much of the nation has gone into lockdown. Read more: 'Practically stealing': Jefferies mapped out dozens of cheap stocks worth owning in a coronavirus-stricken market.
The Dow Is Set to for a Drop, Bank of America Stock Is Sliding, and UnitedHealth Is Gaining
Oil continued to rebound following its historic plunge earlier in the week, which supported stocks on Friday. Investors digested more company earnings, which showed the economic ramifications of the coronavirus shutdown. Here's what happened:. The Dow finished Friday up points 1. Home Depot up 4. If two-thirds of states stay shut down until early summer, second-quarter GDP could contract by more than But if the whole economy was shut down until then, or for about 90 days altogether, GDP would take a bigger hit.
In that case, second-quarter GDP would contract by Wilmington Trust chief economist Luke Tilley created the following chart to show the wide range of outcomes based on how much of the economy reopens and over varying time periods. For instance, if shutdowns continue for days, but only a third of the U. Companies looking to build cash piles to weather the economic downturn, or just hoping to lock in some low rates, have been rushing to issue debt at a record pace.
Goldman Sachs said this year should be a record even with a slowdown in mergers financing and fewer financings for stock buybacks or dividends. With roughly one hour left in the session, the Dow was up points, or 0.
Much of the week's market action was driven on Monday and Tuesday by oil prices, which plummeted to historic lows as the coronavirus outbreak dented demand expectations.
But strength later in the week wasn't able to make up for steep losses on Monday and Tuesday, and West Texas Intermediate, the U.
On Friday the contract gained 44 cents, or 2. The move ends a historic week for oil, which saw WTI dip into negative territory for the first time ever on Monday.
The new features pose an immediate threat to Zoom which has seen a surge in users in recent months as coronavirus lockdowns forced people to work from home.
Preliminary results from a U. The Wall Street Journal reported Friday the coronavirus forced Boeing to delay the return of Max until at least late summer or early fall. Meanwhile, Bloomberg News reported Boeing is planning to cut Dreamliner production in half and announce job cuts when it reports first-quarter earnings. Boeing is due to report first-quarter results on April It's proven to be one of those times now.
UBS economist Brian Rose said in a note that Wall Street is not fully out of the woods even after a massive rally from lows reached late March. Analysts say that while storage capacity is filling up, it's not near its limit yet. But recent cuts in production are just "a fraction of the decline in demand," Ursa Space Systems analyst Geoffrey Craig told CNBC, so "the next catalyst will be inventories hitting capacity limits.
Around midday, the major averages hovered around the flat line as investors wrapped up a volatile week amid historic oil moves. The Dow was down 26 points, or 0. Stocks were up sharply earlier in the day, with the Dow gaining to start off the session. The stock is set for its 14th positive day in The plant-based meat company said earlier in the week it will start selling its products in Starbucks stores in China. Zoom has been on a tear since stay-at-home mandates were implemented to slow the Covid pandemic.
The programs are aimed at troubled parts of the market, providing short-term liquidity for money market mutual funds, large financial institutions that serve as dealers in government bonds, and the commercial paper vehicles that provide unsecured funding that businesses use for operations.
The Fed also has launched a host of other facilities aimed at households, small businesses and state and local governments. He pointed out metrics such as shipping data can "provide a near real-time view into a firm's activities. Exxon said Friday that it has modified its Louisiana manufacturing operations so that it will be able to produce medical-grade hand sanitizer.
The oil giant said it was targeting production of , gallons, which equates to nearly 5 million bottles. Chief operating officer John Stanker will ascend to the top job. Stephenson's retirement was not unexpected, but he previously said he planned to stay on through at least the end of Stephenson will stay on as executive chairman until January. Shares of the telecom giant were trading 0.
The public debut came even as the sports-betting industry is upended after most sporting events were canceled due to the coronavirus pandemic. Don Bilson, head of events-driven research at Gordon Haskett, called the stock "a way to play sports gambling without the casino risk. The consumer sentiment index fell to Economists polled by Dow Jones expected a print of That decline comes after a sharp drop in current economic conditions. Shortly after the opening bell, stocks' rally lost steam.
The Dow Jones Industrial Average was up about 20 points. Stocks were helped by a rebound in oil prices after their unprecedented sell-off. As the economy shut down, businesses diverted spending to technology , while cutting back more broadly on other outlays including their payments to suppliers, according to data tracking business-to-business spending.
Even before the state shutdowns took effect in the second half of March, companies had boosted spending on technology. There is big execution risk around reopening and a secondary wave of infections. Bespoke Investment Group warned about the last trading day of the week: Friday, which has proved to be the worst trading session of the week, according to data from this year.
Stocks are pointing to gains at the open, but are down for the week. People's United earned 33 cents per share in the first quarter, above analysts' estimate of 24 cents per share, according to FactSet.
CNBC's Jim Cramer laid out two buckets of stocks investors can play through the coronavirus pandemic. In the second bucket are companies that have been able to adapt, maintain business and benefit from the coronavirus pandemic and efforts to slow the spread of the deadly disease, Cramer said.
Eisman also said that he was short against Trex, a company in the housing industry that makes decking and outdoor items. Moffett Nathanson said the production and distribution of media content will be permanently changed by the coronavirus crisis, and Disney is the only company that is capable of adapting. As customer behavior permanently shifts to streaming models, Netflix Amazon and Disney will emerge with the lion's share of scripted content.
The firm said Fox's focus on live news and sports remains the right strategy. Intel said it would not give guidance for the full year. The company beat on the top and bottom lines of its first quarter earnings. Amid unprecedented demand loss in the commodities market due to the coronavirus pandemic, Goldman Sachs said that before oil can meaningfully rebound demand will have to recover. He said that while the rebalancing period for oil has begun, it will take weeks to resolve before "we can comfortably argue a bottom has been carved out.
The Wall Street firm said it has near-term uncertainty around Tyson's ability to maintain production levels with closed production plants and absent workers.
Revenue came in short of expectations. West Texas Intermediate, the U. But despite these gains, the contract is still set to post its eighth week of losses in nine. The coronavirus pandemic has led to unprecedented demand loss, and with storage around the world rapidly filling, traders are worried that there might soon be nowhere for oil to go. The bill is now being sent to President Donald Trump to be signed into law.
Donning face coverings and voting in alphabetical sets to cut the risk of infection, representatives approved the bill easily by a vote. At some point, we won't have to do that. But until we feel safe, we're going to be extending.
Dow Jones Industrial Average futures rose in premarket trading, pointed to a gain of about points at the opening bell on Friday. Helping equities is the rebound in oil, which hit record lows earlier in the week. Stocks ended Thursday's volatile session little changed.
The Dow Jones Industrial Average eked out a 0. The Nasdaq Composite also fell 0. However, U. The stock index is down 2. The Nasdaq is down 1. Sign up for free newsletters and get more CNBC delivered to your inbox.
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Nasdaq closed up 1. Stifel upgraded eBay to buy from hold. Bernstein downgraded Tyson Foods to market perform from market outperform.
JMP upgraded Expedia to market outperform from market perform. Piper Sandler downgraded Hershey to neutral from overweight. Wedbush downgraded Dunkin' Brands to neutral from outperform. Raymond James downgraded The Travelers Companies to underperform from market perform. Related Tags. News Tips Got a confidential news tip?
Crude oil on Monday dropped 25% for the biggest single-day drop since That isn't so much of a problem for the stock market, where energy. Stocks dropped on Wednesdsay as earnings season gets into full gear, is when there's too much money around, even when production is going well, “Today's number is one of the first 'hard data' reports on aggregate.
Brazil's Economy Minister Paulo Guedes on Saturday said the country's central bank is likely to shower the economy with money in case of a depression due to the coronavirus pandemic. Brazil's Economy Minister Paulo Guedes on Saturday said the country's central bank is likely to shower the economy with money in case of an economic depression. Canada's unemployment rate jumped less than expected in April because some laid-off people collect federal aid and wait to return to their old jobs when the pandemic passes, while hiring has also ground to a standstill. Villagers placed the bodies of three victims of a deadly gas leak from an LG Polymers plant in southern India at the gates of the site on Saturday, and demanded the factory be shut down immediately and its top management arrested. Nearly 90 cases of the novel coronavirus have been recorded among employees of Polyus Krasnoyarsk, a unit of Russia's largest gold producer Polyus , the regional branch of Russia's consumer health watchdog said on Saturday.
When will the stock market stop going down—or, at least, flash signs of stabilization? Save better, spend better: All the money tips and advice delivered right to your inbox.
Avie Schneider. After weeks of turmoil over the economic toll of the coronavirus, U. Bryan R.
How coronavirus triggered the Dow meltdown and started a bear market
The markets endured their worst day of trading of this young year as the Dow Jones Industrial Average dropped 2, points to close at 23, The Nasdaq Composite Index fell Oil was down over a scuttled OPEC deal which will now mean that Russia and Saudi Arabia will flood the global oil market with cheap crude. Meanwhile, markets are still trying to absorb all of the latest news around the spread of COVID, the disease caused by severe acute respiratory syndrome coronavirus 2. The disease continues to spread in the U.
Dow, S&P 500 keep falling. So how will we know when the stock market drop is over?
The longest bull market in U. Stocks surged in volatile trade Friday, closing sharply higher after President Donald Trump declared a national emergency to score the biggest one-day jump since That still left indexes with huge weekly declines, including a Both indexes had traded at all-time highs in February, making the fall the fastest turnabout from record territory to a bear market on record, according to Dow Jones Market Data. While U. If you thought the stock-market selloff was ugly, take a look at an oil price chart. While crashing oil prices translate into cheap gasoline and energy costs for consumers, the speed and scale of the drop sent shock waves through global markets. See: Why corporate credit is in the spotlight as governments weigh economic stimulus. Also see: Oil market crash exposes liquidity drought in corporate debt trading.
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Why Is the Stock Market Rallying When the Economy Is So Bad?
But although you've certainly heard reports about the Dow Jones Industrial Average DJIA being up or down a certain number of points, do you know what these points represent? Read on to find out how the Dow works and what changes mean for investors and the stock market. However, because the Dow only consists of 30 different stocks, it is not the best representation of the entire market. Sometimes investors are misled into believing that if the Dow is up, so are all other equities , but this is not the case. The Down Jones Industrial Index is a list, or index , of companies considered to be good indicators of the stock market's overall strength. Simply put, these companies are a barometer of the market: when they do well, the economy is doing well, and vice versa. So the Dow takes the average value of these companies every day to see if it has increased or decreased. Because the index is dealing with companies that are worth billions of dollars, a simple method of displaying their changes in value had to be formulated. The clever and resourceful Charles Dow broke everything into points rather than dollars. The points still represent dollars, but the ratio is not
Stock market live Friday: Dow gains 260, posts down week, Boeing falls 6%
Oil continued to rebound following its historic plunge earlier in the week, which supported stocks on Friday. Investors digested more company earnings, which showed the economic ramifications of the coronavirus shutdown. Here's what happened:. The Dow finished Friday up points 1. Home Depot up 4. If two-thirds of states stay shut down until early summer, second-quarter GDP could contract by more than
