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Stocks post big declines but cut losses into the close
18-Mar-20 16:20 ET
Dow -1338.40 at 19898.98, Nasdaq -344.94 at 6989.20, S&P -131.09 at 2398.10

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

[BRIEFING.COM] The S&P 500 fell 5.2% on Wednesday, although it did drop as much as 9.8% intraday as pandemic fears continued to hit not only stocks but also Treasuries and commodities. A strong finish also pared losses in the Dow Jones Industrial Average (-6.3%) and Nasdaq Composite (-4.7%) but did little for the Russell 2000 (-10.4%).

Despite the coordinated stimulus packages announced by central banks and the massive stimulus plans laid out by Washington, confidence was lacking due to the growing outbreak of COVID-19 and the continued shutdown of the economy. Shortly before the close, the Senate finally passed the House bill that provides unemployment and sick leave benefits.

Selling was widespread and was made most pronounced in the cyclical energy (-14.3%), financials (-8.7%), and industrials (-7.2%) sectors. The energy space was crushed by the 24.4% collapse in WTI crude ($20.42/bbl, -$6.06), which fell to its lowest level since 2002. The communication services sector (-2.8%) declined the least today.

As part of the proposed $1 trillion stimulus package, the Treasury Department clarified today it would seek $300 billion for small business interruption and a secured lending facility of $50 billion for airlines. Separately, the FHFA announced the suspension of foreclosures and evictions for 60 days for enterprise-backed mortgages.

New measures taken to contain the virus included the closure of the U.S.-Canadian border for non-essential traffic and President Trump invoking the Defense Production Act, which gives the White House the right to require companies to manufacture medical supplies in short supply.

Boeing (BA 101.89, -22.25, -17.9%), meanwhile, asked for at least $60 billion of aid, including loan guarantees, for the aerospace industry. AT&T (T 32.85, -0.89, -2.6%), Simon Properties (SPG 44.92, -13.94, -23.7%), and the big three U.S. automakers were among the latest companies to temporarily close or reduce operations.

Safe-haven assets like gold ($1516.40/ozt, -$8.46, -0.6%) and U.S. Treasuries weren't so safe today, with losses suggesting that many investors were raising cash in these uncertain times. Longer-dated maturities remained under heavy selling pressure amid the view that more debt will be needed for the massive fiscal stimulus plans.

The 2-yr yield rose seven basis points to 0.52%, and the 10-yr rose 27 basis points to 1.27%. The U.S. Dollar Index rose 1.4% to 100.97.

Reviewing Wednesday's economic data:

Housing starts were stronger than expected in February at a seasonally adjusted annual rate of 1.599 million (Briefing.com consensus 1.475 million), yet they were down 1.5% m/m and will be expected to drop further in March. Building permits were weaker than expected at 1.464 million (Briefing.com consensus 1.480 million) and were down 5.5% m/m.
The key takeaway from the report is that it will be largely dismissed on the grounds that it is "old" data in a new world that is dealing with economic shutdown measures to curb the spread of COVID-19.
The weekly MBA Mortgage Applications Index declined 8.4% following last week's 55.4% surge.

Looking ahead, investors will receive the weekly Initial Claims and Continuing Claims report, the Q4 Current Account Balance, and the Philadelphia Fed Index for March on Thursday.

Nasdaq Composite: -22.1%
S&P 500: -25.8%
Dow Jones Industrial Average: -30.3%
Russell 2000: -40.6%

Market Snapshot
Dow 19898.98 -1338.40 (-6.30%)
Nasdaq 6989.20 -344.94 (-4.70%)
SP 500 2398.10 -131.09 (-5.18%)
10-yr Note -32/32 1.188
NYSE Adv 182 Dec 2730 Vol 1.9 bln
Nasdaq Adv 340 Dec 3001 Vol 4.9 bln

Industry Watch
Strong: Communication Services, Consumer Staples
Weak: Energy, Industrials, Financials

Moving the Market

-- Widespread selling amid virus fears, cash-raising efforts but stocks cut losses into the close

-- Level 1 circuit breaker triggered for fourth time in two weeks after S&P 500 declines 7.0%

-- Oil loses 24%, longer-dated Treasury yields continued to rise

-- Cyclical sectors led retreat

WTI crude tanks 24%
18-Mar-20 15:25 ET
Dow -1853.50 at 19383.88, Nasdaq -521.77 at 6812.37, S&P -197.42 at 2331.77

[BRIEFING.COM] The S&P 500 currently trades lower by 8.1% and continues to trade below its December 2018 low (2351).

One last look at the S&P 500 sectors shows energy struggling mightily with a 14.8% decline, followed by the financials (-10.8%) and industrials (-10.9%) sectors. The communication services sector (-5.8%) is down the least.

WTI crude tanked 24.4% (-$6.60) to $20.42/bbl.