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Stock market drops another 3% in orderly retreat
25-Feb-20 16:20 ET
Dow -879.44 at 27081.28, Nasdaq -255.67 at 8965.65, S&P -97.68 at 3128.21

https://www.briefing.com/stock-market-update

[BRIEFING.COM] U.S. stocks sold off again on Tuesday, as the global spread of the coronavirus continued to undermine growth expectations and exacerbate the flight for safety in Treasuries. The Nasdaq Composite (-2.8%) turned negative for the year while the S&P 500 (-3.0%), Dow Jones Industrial Average (-3.2%), and Russell 2000 (-3.5%) dropped at least 3.0%.

The day started in positive territory amid a half-hearted effort to buy yesterday's drop, even though the coronavirus continued to afflict countries outside China and spread to new parts within Europe. The subsequent, orderly retreat in equities, however, suggested that the market started to get worried about the outbreak escalating in the U.S.

All 11 S&P 500 sectors finished with steep losses ranging from 1.8% (consumer staples) to 4.3% (energy). Investors decided to sell first and ask questions later as they listened to updates from several organizations and companies.

CDC officials warned that the spread of the coronavirus in the U.S. appears inevitable, but the HHS said the immediate risk is low. NEC Director Kudlow tried to ease nerves by telling CNBC that the U.S. has contained the virus "pretty close to air-tight," but the market didn't care much for optimistic views today.

Fed Vice Chair Clarida provided a pragmatic view, reiterating that it's still too early to assess the growth impact from the coronavirus, or whether it will lead to a material change in its outlook, but the market didn't care for pragmatism, either. Companies, after all, continued to provide warnings due to the virus, leading investors to believe the impact could be worse than expected.

MasterCard (MA 302.89, -21.78, -6.7%), United Airlines (UAL 70.57, -4.90, -6.5%), and Macy's (M 14.60, -0.85, -5.5%) joined the growing list of U.S. companies to do so. Home Depot (HD 237.38, -2.32, -1.0%) beat earnings estimates, but shares barely stood a chance given today's market conditions.

Elsewhere, the rally in U.S. Treasuries persisted amid the underlying growth concerns. The 2-yr yield fell six basis points to 1.20%, and the 10-yr yield fell five basis points 1.33% after setting a record low at 1.31%. The U.S. Dollar Index fell 0.4% to 98.96. WTI crude fell back below $50 per barrel, closing the session down 2.7%, or $1.36, at $49.89/bbl.

Reviewing Tuesday's economic data, which included reports on the housing sector and the U.S. consumer:

The Conference Board's Consumer Confidence Index increased to 130.7 in February (Briefing.com consensus 132.0) from a revised 130.4 (from 131.6) in January.
The key takeaway from the report is that it did not show a significant change in sentiment when factoring in the revision to the January reading.
The S&P Case-Shiller Home Price Index increased 2.9% in December (Briefing.com consensus 3.2%).
The FHFA Housing Price Index increased 0.6% in December.

Looking ahead, investors will receive New Home Sales for January and the weekly MBA Mortgage Applications Index on Wednesday.

Nasdaq Composite -0.1% YTD
S&P 500 -3.2% YTD
Dow Jones Industrial Average -5.1% YTD
Russell 2000 -5.8% YTD

Market Snapshot
Dow 27081.28 -879.44 (-3.15%)
Nasdaq 8965.65 -255.67 (-2.77%)
SP 500 3128.21 -97.68 (-3.03%)
10-yr Note +3/32 1.345
NYSE Adv 278 Dec 2538 Vol 1.4 bln
Nasdaq Adv 476 Dec 2749 Vol 3.5 bln

Industry Watch
Strong: Consumer Staples
Weak: Energy, Materials, Industrials

Moving the Market

-- Stock market drops another 3% on coronavirus fears

-- Rally in Treasury market strengthened, driving 10-yr yield to all-time low

-- Coronavirus cases continued to spread outside China, adding to angst that outbreak will escalate in the U.S.

WTI crude falls back below $50 per barrel
25-Feb-20 15:25 ET
Dow -858.51 at 27102.21, Nasdaq -243.25 at 8978.07, S&P -95.44 at 3130.45

[BRIEFING.COM] The S&P 500 has descended back to session lows with a 2.9% decline.

One last look at the S&P 500 sectors shows energy (-4.5%) and materials (-4.1%) leading the sell-off, and today's "best" performer, consumer staples (-1.1%), is down more than 1%.

WTI crude fell back below $50 per barrel, settling lower by $1.36 (-2.7%) to $49.89/bbl.