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Stocks deepen losses in brutal session despite central bank stimulus
12-Mar-20 16:20 ET
Dow -2352.60 at 21200.72, Nasdaq -750.25 at 7201.81, S&P -260.74 at 2480.64

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

[BRIEFING.COM] Each of major indices dropped more than 9% on Thursday, as new stimulus measures from central banks failed to stir confidence among investors without a meaningful fiscal response from Washington. The Russell 2000 (-11.2%) led the retreat, followed by the Dow Jones Industrial Average (-10.0%), S&P 500 (-9.5%), and Nasdaq Composite (-9.4%) with each closing down more than 25% from prior highs.

For the second time this week, the S&P 500 triggered a 15-minute trading halt after falling by 7.0% shortly after the open following more economic disruptions caused by the coronavirus. Notable ones included President Trump suspending travel from most European countries for 30 days and major sports leagues in the U.S. suspending their 2019-2020 seasons.

Few asset classes were safe today. The S&P 500 sectors lost between 7.4% (health care) and 12.3% (energy). WTI crude fell 4.3%, or $1.43, to $31.57/bbl. Gold futures fell 3.2% to $1589.80/ozt. The 2-yr yield was unchanged at 0.49%, and the 10-yr yield increased three basis points to 0.85% amid selling pressure. The U.S. Dollar Index rose 0.8% to 97.25.

Notably, the benchmark index cut its intraday decline to 2.9% after the New York Fed announced repurchase operations totaling more than $1.5 trillion, while stocks in Europe accelerated losses following a lackluster ECB response. The ECB didn't cut its key policy rates, and instead announced additional net asset purchases through the end of the year with additional longer-term refinancing operations.

While it's encouraging that central banks are committed in ensuring ample liquidity in these disastrous trading conditions, it's unlikely that the measures will boost consumer confidence. Elsewhere, the reported disagreements within the White House regarding a stimulus plan only exacerbated the dire mood on Wall Street.

Progress is reportedly being made, though, with the U.S. Senate to remain in session next week instead of going on recess. President Trump is expected to sign a declaration to unlock more funding to fight the COVID-19, according to Politico.

The market wants strong and immediate action, as well as signs that the coronavirus situation will get better. The CBOE Volatility Index, which is commonly referenced as a fear gauge, surged 40.0% to 75.47-- its highest level since the financial crisis -- as investors rushed for more protection against further equity weakness.

Reviewing Thursday's economic data:

The Producer Price Index for February declined 0.6% m/m (Briefing.com consensus -0.2%) while core PPI, which excludes food and energy, declined 0.3% (Briefing.com consensus 0.1%). That left the yr/yr readings at 1.3% and 1.4%, respectively.
The key takeaway from the report is that it was weighed down sharply by the decline in energy prices, which was prominent in final demand goods, processed goods for intermediate demand, and unprocessed goods for intermediate demand.
Initial jobless claims decreased by 4,000 for the week ending March 7 to 211,000 (Briefing.com consensus 218,000). Continuing claims for the week ending February 29 decreased by 11,000 to 1.722 million.
The key takeaway from the report is that the good news in it will be overlooked, as subsequent developments suggest there will be a tide of rising initial claims in coming weeks.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for March and Export and Import Prices for February on Friday.

Nasdaq Composite -19.7% YTD
S&P 500 -23.2% YTD
Dow Jones Industrial Average -25.7% YTD
Russell 2000 -32.7% YTD

Market Snapshot
Dow 21200.72 -2352.60 (-9.99%)
Nasdaq 7201.81 -750.25 (-9.43%)
SP 500 2480.64 -260.74 (-9.51%)
10-yr Note -14/32 0.862
NYSE Adv 75 Dec 2788 Vol 2.2 bln
Nasdaq Adv 187 Dec 3166 Vol 5.0 bln

Industry Watch
Strong: None
Weak: Energy, Industrials, Financials, Utilities

Moving the Market

-- Stock market deepened losses by more than 9%

-- New York Fed and ECB announce new stimulus measures, but investors still await fiscal stimulus

-- Economic slowdown concerns heightened after President Trump suspended travel from Europe for 30 days among other disruptions to the economy

-- 15-minute stoppage after S&P 500 falls 7.0% for second time this week

WTI crude falls 4.3% amid market turmoil
12-Mar-20 15:30 ET
Dow -2049.30 at 21504.02, Nasdaq -662.79 at 7289.27, S&P -228.95 at 2512.43

[BRIEFING.COM] The S&P 500 currently trades lower by 8.4% and is now down 26.0% from its all-time high.

One last look at the S&P 500 sector standings shows losses ranging from 5.9% (health care) to 9.9% (energy).

WTI crude settled down $1.43 (-4.3%) to $31.57/bbl.