The Dow closed down over 1,400 points Wednesday, ending its historic bull market run and entering bear market territory as the coronavirus was officially named a pandemic by the World Health Organization. Here’s what you need to know.
A bear market marks a 20% decline in stocks from recent highs and an overall pessimistic feeling on Wall Street. They typically last around 13 months
Read MoreRussia’s failure to buy into Saudi Arabia’s efforts to deepen cuts ended a production agreement, and now the two nations seem to be locked in a damaging market share war.
Analysts, however, say the real target, particularly of Russia, is more likely the U.S. shale industry.
The market-share battle could result in a further 10% or more decline in oil prices.
Analysts expect the price war to result in a hit to the U.S. economy and a smaller U.S. oil sector.
The Dow Jones Industrial Average sank more than 2,000 points on Monday, its worst day since 2008, as fears about the spread of the new coronavirus and an oil price war sent investors scrambling out of stocks.
Read MoreIn 2016, I quit my six-figure job in software development and retired early at 35. My wife Courtney, who was 31 at the time, joined me in early retirement a year later.
Getting there wasn’t easy. We always contributed the annual limit for our retirement savings plans and invested tons of money in the stock market. In fact, Courtney’s entire salary went straight into our investment portfolio.
Read MoreThe Dow Jones Industrial Average ended the day 969.58 points, or 3.5%, lower at 26,121.28 after tanking nearly 1,150 at its session low. The S&P 500 dropped 3.3%, or 106.18, to 3,023.94 and the Nasdaq Composite fell 3.1%, or 279.49, to 8,738.60. All 11 S&P sectors finished the day in the red. Stocks turned sharply lower as the 10-year Treasury yield fell to an all-time low below 0.9%.
Read MoreStocks rallied straight out of the gate on Wednesday morning, and have been moving steadily higher ever since. Markets are getting a boost following former Vice President Joe Biden’s strong Super Tuesday showing. Many on the Street regard Biden’s policies as more market friendly than those of Senators Sanders and Warren.
Read MoreIndia is home to more than a billion people and has huge energy needs.
When it comes to renewables, the country has set some ambitious targets over the next decade.
In Monaco, the world’s most expensive city on a per-square-foot basis, $1 million gets you 162 square feet of prime real-estate, according to a report from real-estate brokerage firms Douglas Elliman and Knight Frank.
Hong Kong ranked as the second-most expensive city, with $1 million buying 226 square feet.
London ranked third with 323 square feet, while in New York, $1 million buys 344 square feet.
Read MoreFacebook, Google, Microsoft and Adobe on Monday announced their decisions to cancel, alter and pull out of various upcoming conferences due to the spreading of the coronavirus.
The companies’ decisions are the latest in a series of cancelations to major annual events held by the tech industry each year.
Beyond Meat head Ethan Brown on Monday reaffirmed the company’s mission to expand its manufacturing capabilities to Asia, despite potential headwinds associated with the novel coronavirus outbreak that has disturbed global commerce.
Read MoreThe Federal Reserve is likely to join other global central banks in cutting interest rates aggressively in response to the coronavirus scare, Goldman Sachs economists said Sunday.
With fears over a global slowdown intensifying, the Fed likely will announce a 50 basis point cut at its March meeting, if not sooner, the firm said. In all, Goldman sees the Fed cutting 100 basis points this year, which is an increase from just Friday, when it saw a cut of 75 basis points.
Read MoreInvestors braced for another turbulent week as stock futures tumbled on Sunday night as concerns around the coronavirus kept Wall Street under pressure.
Dow Jones Industrial Average futures dropped 210 points, indicating a loss of 248 points at Monday’s open. S&P 500 and Nasdaq 100 futures fell 1% and 1.1%, respectively. Dow futures briefly fell more than 500 points earlier.
Read MoreThe 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.
Read MoreThe 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.
Read MoreThe 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.
Read MoreThe major averages all slid more than 3% on Monday as the number of reported coronavirus cases outside of China rose.
If history is any indication stocks may be set for a relief rally on Tuesday.
According to Bespoke Investment Group, since March 2009 the S&P 500 has fallen more than 2% during a Monday session 18 other times, and that in 15 of the prior instances the index rose the following day, for an average gain of 1.02%.
Virgin Galactic’s stock has more than tripled in the past three months, up 298% at the end of trading Wednesday.
Fidelity told CNBC that Virgin Galactic was bought more than any other stock on Tuesday — topping Apple, Tesla and others.
Virgin Galactic and Tesla have similarities that help explain why both are such popular speculative plays for investors.
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.
Read MoreSeeing it as a slight to Huawei, Hua Chunying, the spokesperson for China’s Ministry of Foreign Affairs, accused the U.S. of hypocrisy.
She brought up an allegation from 2013 that the U.S. tapped German Chancellor Angela Merkel’s phone.
“Who he (Grenell) is threatening? Who’s the real threat? Remember, Snowden said US spied on Chancellor Merkel’s phone!,” she tweeted.
