Stock Market 03/06/20 - Dow Jones: 25,864
Stock market live Friday: Dow drops 250 but stocks end week positive, oil plunges 10%
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4:01 pm: Stocks end a volatile week, Dow drops 250 points
The Dow Jones Industrial Average came back in a serious way, closing down 256 points on Friday, after falling 896 points at the low. The 30-stock average ended the week with a gain of 1.8%. The S&P 500 fell 1.7% and the Nasdaq Composite dropped 1.0% on Friday, but both indices ended the week with a gain. All three major averages are still in correction territory, each down more than 10% from their most recent 52-week high. - Fitzgerald
The plunged almost 900 points in Friday’s session, though the 30-stock index finished down about 257 points, or roughly 1%, to close at 25,864.78. The S&P 500 and swung more than 4% to their lows of the day before closing down less than 2%.
The major indexes all finished the trading week in the green, however.
“Pay attention to what these companies have to say next week, but don’t forget that — at least for the moment — COVID-19 is in the driver’s seat,” Cramer said.
3:51 pm: Stock pare losses into the close
The Dow Jones Industrial Average gave back a significant amount of losses with only a few minutes left in the trading day. The Dow is now down 230 points. - Fitzgerald
3:50 pm: S&P 500 still above support level, Interactive Brokers chief strategist says
Interactive Brokers chief strategist Steve Sosnick said on “Closing Bell” that he thinks the S&P 500, which is down 2.4% to 2,951 today, has support around the 2,800 level. He also said it is good news that the index hasn’t broken through its intraday low last Friday of 2,856. “We continue to meander right now. If we really took out last week’s lowest lows, that would be a real worrisome on a Friday afternoon,” Sosnick said. — Pound
3:24 pm: Coordination to help industries needed to support stocks, BlackRock PM says
BlackRock portfolio manager Russ Koesterich said on “Closing Bell” that coordination by governments to help struggling industries and a slowing spread of the coronavirus are what the stock market needs to stop falling. “You need to see more of a coordinated effort by governments about how their going to backstop different industries, how they’re going to backstop some of the issues around supply chains. And obviously the best thing that would happen is some rate of deceleration around the virus itself,” Koesterich said. — Pound
3:00 pm: Final hour of trading: Dow nears its session low, down 800 points
With roughly an hour left in the session, the Dow plunged more than 800 points, trading near its session low. The S&P 500 dropped 3.8%, while the Nasdaq lost 4%. All three major averages are on pace to post their third straight losing week. Energy is the worst-performing sector, down 6%, as oil prices plunged more than 10% after OPEC’s allies rejected additional production cuts. - Li
2:50 pm: Oil plunges 10% for worst day in more than 5 years
Oil prices plunged more than 10% to multi-year lows on Friday as OPEC’s allies rejected additional production cuts that the organization proposed Thursday. U.S. West Texas Intermediate crude slid 10.07%, or $4.62, to settle at $41.28, its lowest level since Aug. 2016. It was WTI’s worst day since Nov. 28, 2014. International benchmark Brent crude slid more than 9% to a session low of $45.18, a level not seen since June 2017. - Stevens
2:35 pm: Bank earnings could fall 30%, Mike Mayo says
Wells Fargo bank analyst Mike Mayo said on CNBC’s “Power Lunch” that falling interest rates could decrease bank earnings by 30% this year in the “worse case scenario.” Mayo said this would mainly be an earnings issue for banks and not a balance sheet issue like during the financial crisis. The 10-year Treasury yield is already close to his worst-case scenario, Mayo said, but the Fed Funds rate is still above that level. He added that he recommends buying the bigger bank stocks. “Banks make money on the difference between their borrowing and lending, and that’s getting squeezed. There’s no way around that,” Mayo said. — Pound
2:22 pm: Trading volumes below average
Trading volumes in U.S. stocks were tracking below average on Friday. So far, U.S. composite volume stands at 6.24 million shares, which is below the 50-day average volume of 6.92 million. The SPY has traded 109.8 million shares, which is below its 30-day average volume of 118.1 million shares. – Hayes
2:18 pm: Market now sees the Fed cutting by 75 basis points in March
Even with the Federal Reserve’s emergency interest rate cut earlier this week, traders are still expecting the Fed to cut its benchmark interest rates by three-quarters of a percentage point this month. Friday’s selloff pushed traders to assign a 65% chance of a 75 basis point reduction by the March 17-18 Federal Open Market Committee meeting, according to the CME’s FedWatch tracker. There was zero probability assigned to that steep of a cut Thursday. — Fitzgerald, Cox
2:12 pm: Dow still on pace to eke out a small gain on the week
Despite a near 600 point drop, the Dow is still on track to post a small gain for the week of about 0.3%. The S&P 500 and the Nasdaq are solidly in the red for the week as of afternoon trading. Earlier this week, the 30-stock Dow has swung 1,000 points or higher twice within three days. — Li
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2:05 pm: Market looks like ‘one big opportunity right now,’ Virtu founder says
Virtu Financial founder Vincent Viola said on CNBC’s “Halftime Report” that he thought it was a good time to buy stocks because of the underlying strength in the U.S. economy. “I am of the opinion that the marketplace is just one big opportunity right now,” Viola said. “Again, the sectors, that remains for the personal financial advisor. From my perspective, there are structural changes in the economy that are going to provide for long-term growth for more than industry.” — Pound
1:32 pm: Oil & Gas ETF sinks to all-time low
Oil & Gas ETF (XOP) plunged more than 7% to an all-time low as oil prices get battered following OPEC+ failure to reach a deal on additional production cuts. As oil prices move lower, Virtu Financial founder Vincent Viola said there will be steep repercussions for American oil producers. “The exploration and production patch is going to go through a dislocation and you’re going to see a lot of bankruptcies and replacement and quite frankly restructuring of the domestic oil market,” he said Friday on CNBC’s “Halftime Report.” -Stevens, Francolla
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