The key yield has fallen more than 25 basis points since last week as global equities sold off in response to the spreading coronavirus.
When compared to monthly average yields, the 10-year Treasury note is trading at levels not seen for more than 100 years.
Guggenheim’s Scott Minerd said that a continued environment of loose monetary policy from central banks could send U.S. interest rates down even further
The Dow Jones Industrial Average dropped 357.28 points, or more than 1%, to 25,409.36. The 30-stock Dow briefly fell more than 1,000 points then rallied into the close in a wild trading session characteristic of the week. The S&P 500 slid 0.8% to 2,954.22. The Nasdaq Composite closed flat at 8,567.37 but fell as much as 3.5% on the day.
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The SMH semiconductor ETF, which holds top chip stocks such as AMD and Broadcom, has fallen 8% in a week as the number of coronavirus cases outside of China spiked. The supply-chain-sensitive stocks have been hit especially hard by fears of global economic disruption.
Quint Tatro, president of Joule Financial, is using the sell-off as an opportunity to buy certain stocks on weakness. Two names that are at the top of his list are Applied Materials and Intel.
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The Dow Jones Industrial Average closed 1,031.61 points lower, or 3.56%, at 27,960.80. The S&P 500 slid 3.35% to 3,225.89 while the Nasdaq Composite closed 3.71% lower at 9,221.28. It was the Dow’s biggest point and percentage-point drop since February 2018. The Dow also gave up its gain for 2020 and is now down 2% for the year. The S&P 500 also had its worst day in two years and wiped out its year-to-date gain as well.
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Musk, who owns about 19% of the company’s stock, or 34.1 million shares, saw the value of his holdings jump by $4.5 billion as the company’s shares climbed more than 17% between Monday’s close and midmorning trading Tuesday. Musk has added more than $17 billion to his net worth just this year — more than any other billionaire in the world. To put that into perspective, he has made $500 million a day — or $20 million an hour — since Jan. 1.
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The coronavirus is expected to be the dominant driver of markets in the week ahead, and even if there is volatility, analysts believe the market is resilient and has momentum to go higher for now.
Walmart, ViacomCBS and Deere are among companies reporting earnings in the week ahead.
Analysts expect to see more companies detailing the impact of the virus on their operations or supply chains.
Casper shares started trading Thursday on the NYSE at $14.50, after pricing at $12.
Casper’s IPO priced on the low end of its range.
The online mattress maker at one point was valued at $1.1 billion.
But Casper has a valuation of about $575 million based on where shares opened.
A Tesla executive said that cars initially scheduled for delivery in early February will be delayed due to the outbreak of the new coronavirus.
Tesla shares fell 17.18% Wednesday.
Tesla began rolling out Model 3 vehicles from its Shanghai Gigafactory to Chinese customers in January.
The S&P 500 has dropped 3% from its record high. Economically cyclical groups have been purged. Bonds are leading stock returns one month into the year.
Something was bound to come along and prompt a pullback. As it happened, the viral outbreak arrived to do the job.
Given that a perfectly routine decline following a strong multi-month rally could amount to 2% to 5%, a further drop of 2% to 3% would not compromise the broader uptrend.
Bond markets pricing in a high likelihood of another Fed rate cut around mid-year.
Global brands Estee Lauder and Nike both generate 17% of their revenue from mainland China each year, Credit Suisse estimated based on the companies’ filings.
Other apparel retailers with high China exposure include Tapestry, PVH and VF.
Citi said American hotel companies that have “significant” exposure to China include Marriott, Hilton and Hyatt Hotels.
McDonald’s, Starbucks and Yum China have all shut down some of their stores in China in response to the outbreak, leading analysts to worry about their near-term revenue picture.
Buffett isn’t the only famous stock gift-giver: In 2017, Kanye West gave Kim Kardashian West over $100,000 in stock in companies like Apple, Amazon and Disney. On her Instagram, Kardashian West revealed the gift included 920 Disney shares and around 995 shares in Adidas.
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Investors are expecting to have a very different Christmas Eve than the last one that saw the S&P 500 dip into bear market territory. On Dec. 24, 2018, the Dow Jones Industrial Average lost about 650 points in its worst day of Christmas Eve trading ever amid turmoil in Washington. President Donald Trump teased about firing Federal Reserve Chair Jerome Powell after the central bank hiked interest rate in December, triggering a massive sell-off.
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Trade war? Yes. Global slowdown? Yes. Volatile market? Yes. But does that mean investors should cash out and run? Not this top-performing fund manager. She’s staying put.
Joanna Kwok, who co-manages the JPMorgan Asia Growth Fund, says volatility will linger in Asia markets due to trade war uncertainty and corporate earnings concerns. Even with the unpredictability of U.S. President Donald Trump and other political risks, investors should hang on as valuations suggest “decent” returns in the next 12 months, she said.
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