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Stock market retreats on renewed coronavirus fears
24-Jun-20 16:15 ET
Dow -710.16 at 25445.96, Nasdaq -222.20 at 9909.17, S&P -80.96 at 3050.20

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

[BRIEFING.COM] The major indices fell more than 2% on Wednesday amid renewed concerns about the coronavirus and its potential impact on reopening activity. The S&P 500 lost 2.6%, the Dow Jones Industrial Average lost 2.7%, the Nasdaq Composite lost 2.2%, and the Russell 2000 lost 3.5%.

All 11 S&P 500 sectors closed lower, and all 30 Dow components closed lower. The energy (-5.5%), industrials (-3.5%), and financials (-3.5%) sectors were hit the hardest, while the utilities sector (-0.9%) was the lone sector that declined less than 1.0%.

Several states, including Texas and California, continued to report daily records in new coronavirus cases and hospitalizations, which forced governments, companies, and citizens to react in preemptive manners that the market feared would slow down the pace of a recovery.

Notably, the S&P 500 fell to session lows (-3.2%) shortly after New York Governor Cuomo announced that the tri-state area will be imposing a 14-day quarantine on travelers coming from coronavirus hotspots. The EU was also reported to be considering its own restrictions on U.S. travelers, banning them from entering when it relaxes its border restrictions on July 1.

It could be argued that the extent of today's decline was exacerbated by the market's overextended set-up. The Nasdaq was up for eight straight days, rising 6.7% to record highs in the process, while the S&P 500 was up in six of the prior eight sessions despite similar reports of the rising rate of coronavirus in several states.

While there were positive developments, such as rebounding economic data, during that stretch, there were few upbeat reports today.

Other negative-sounding news from today included the U.S. considering $3.1 billion in new export tariffs on European goods, the EU planning to proceed with its digital tax, Apple (AAPL 360.06, -6.47, -1.8%) planning to re-close seven stores in Houston, and Walt Disney (DIS 112.07, -4.52, -3.9%) employees reportedly petitioning the company to delay its Florida reopening.

U.S. Treasuries finished with modest gains amid the weakness in equities. The 2-yr yield declined one basis point to 0.18%, and the 10-yr yield declined two basis points to 0.69%. The U.S. Dollar Index rose 0.6% to 97.21. WTI crude fell 6.2%, or $2.50, to $37.88/bbl.

Reviewing Wednesday's economic data:

The FHFA Housing Price Index for April increased 0.2% following a 0.1% increase in March.
The weekly MBA Mortgage Applications Index fell 8.7% following an 8.0% spike in the prior week.

Looking ahead to Thursday, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for May, the third estimate for Q1 GDP, and the advance May reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories.

Nasdaq Composite +10.4% YTD
S&P 500 -5.6% YTD
Dow Jones Industrial Average -10.8% YTD
Russell 2000 -16.7% YTD

Market Snapshot
Dow 25445.96 -710.16 (-2.72%)
Nasdaq 9909.17 -222.20 (-2.19%)
SP 500 3050.20 -80.96 (-2.59%)
10-yr Note +2/32 0.695
NYSE Adv 343 Dec 2558 Vol 1.1 bln
Nasdaq Adv 601 Dec 2753 Vol 5.5 bln

Industry Watch
Strong: Consumer Staples, Utilities
Weak: Financials, Energy, Industrials, Real Estate

Moving the Market

-- Stock market declines more than 2% amid renewed coronavirus/recovery concerns

-- Several states continued to report daily records in new coronavirus cases and hospitalizations

-- New York tri-state area to enforce a 14-day quarantine on travelers coming from coronavirus hotspots

WTI crude falls more than 6%
24-Jun-20 15:25 ET
Dow -597.06 at 25559.06, Nasdaq -193.86 at 9937.51, S&P -70.36 at 3060.80

[BRIEFING.COM] The S&P 500 is trading lower by 2.2%, which is better than the 3.2% decline from its session low.

One last look at the S&P 500 sectors shows the energy (-4.7%), real estate (-3.1%), financials (-2.9%), and industrials (-2.9%) sectors bearing the brunt of the damage, while the utilities sector is down just 0.7%.

WTI crude futures settled lower by $2.50 (-6.2%) to $37.88/bbl.