Written by Gary
The stock rout related to coronavirus fears continued on Tuesday with the DJIA losing 879 points, on top of Monday’s 1,000 point plunge. The S&P 500s two-day loss was 6.3%. There were few places to hide: The dollar index lost 0.4% to fall below 99; WTI oil fell 2.5% to close just above 50, after spending much of the afternoon below that benchmark. Even gold got beaten up, down 2.3%. Treasuries were up, with the 10-year yield hitting an all-time intraday low near 1.30% before closing at 1.33%. The 30-year bond continued to set all-time records, closing at 1.82%.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Wall Street plunges as coronavirus spread sends investors fleeingWall Street’s three major stock indexes fell 3% on Tuesday as the coronavirus spread further around the world and investors clamored for safety a day after the S&P 500’s and the Dow Industrials’ biggest daily declines in two years. |
| Oil falls for third day as virus fears accelerate on U.S. warningCrude prices fell about 3% on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus grew after the U.S. government warned Americans to prepare for the disease. |
| Juul under scrutiny by 39 state attorneys generalA group of 39 state attorneys general on Tuesday announced an investigation into Juul Labs Inc’s marketing practices, adding to mounting legal and regulatory problems for the e-cigarette maker over its role in the nation’s youth vaping epidemic. |
| Facebook would have to pay $3.50 per month to U.S. users for sharing contact info: studyGerman Facebook users would want the social media platform to pay them about $8 per month for sharing their contact information, while U.S. users would only seek $3.50, according to a study of how people in various countries value their private information. |
| Mallinckrodt agrees to $1.6 bln opioid settlement, unit to seek bankruptcyMallinckrodt Plc on Tuesday said it had agreed to a $1.6 billion settlement proposal in which its generic drug business would file bankruptcy in order to resolve thousands of lawsuits alleging it helped fuel the U.S. opioid epidemic. |
| U.S. labor board limits companies’ liability for franchisee labor-law violationsA U.S. labor board on Tuesday finalized a rule that will make it more difficult to hold companies liable for unlawful labor practices by franchisees and contractors, reversing a more worker-friendly Obama-era standard criticized by business groups. |
| For Wells Fargo and former executives, $3 billion-deal with U.S. may not be the endAlthough Wells Fargo & Co settled major probes with federal agencies over abusive sales practices last week, the bank and its former executives are not out of the woods yet, legal and regulatory experts said. |
| Stocks, oil fall further on accelerating coronavirus concernsStocks across the globe fell on Tuesday to their lowest since early December and the benchmark U.S. debt yield hit a record low on concerns about the economic hit of the spread of the novel coronavirus. |
| Coronavirus fears pull U.S. chip index into a correctionWall Street’s main semiconductor benchmark tumbled into correction territory on Tuesday in its deepest four-day rout since the financial crisis, as the coronavirus spread further around the world and deepened fears about the global economy. |
| Iger Out As Disney CEO; Stock Extends LossesIger Out As Disney CEO; Stock Extends Losses A couple of week ago, Disney CEO Bob Iger was on CNBC talking about his contract extension to 2021 and offering some bullish comments about the coronavirus and Disney. This week, he’s out. |
| Bond Yields Crash To Record Lows As Stocks Suffer Worst Breadth Since DotCom CollapseBond Yields Crash To Record Lows As Stocks Suffer Worst Breadth Since DotCom Collapse WHO, CDC, and HSS all dropped the honesty hammer today: WHO SAYS REST OF WORLD IS NOT YET READY FOR VIRUS SPREAD CDC OFFICIAL SAYS CORONAVIRUS PANDEMIC IS LIKELY AZAR SAYS U.S. MAY NEED UP TO 300M MASKS FOR HEALTHCARE WORKERS And just like that ‘complacency’ gone… From “Extreme Greed” to “Extreme Fear” in a week… |
| Germany Confirms First Coronavirus Case As CDC Warns Pandemic “No Longer A Question Of ‘If’, It’s A Question Of ‘When'”: Live UpdatesGermany Confirms First Coronavirus Case As CDC Warns Pandemic “No Longer A Question Of ‘If’, It’s A Question Of ‘When'”: Live Updates Summary: WHO warns the rest of the world “is not ready for the virus to spread…” CDC warns Americans “should prepare for possible community spread” of virus. Later, CDC says pandemic not a question of it, but when Germany confirms first case; traveler from Milan Italy cases spike to 322; deaths hit 10 Kudlow tries to jawbone markets higher HHS Sec. Azar warns US lacks stockpiles of masks Italy Hotel in Lockdown After First Coronavirus Case in Liguria Algeria confirms 1st case First case in Switzerland Kuwait halts all flights to Singapore and Japan Iran confirms 95 cases, 15 deaths First case in Austria First case in Spain Iran Deputy Health Minister infected with Covid-19 * * * Update (1545ET): In keeping with the spate of ominous comments from American government officials, there have been reports about FDA Director Stephen Hahn warning about a shortage of medical supplies like facemasks as the CDC warns that outbreaks in the US are inevitable. He made a similar comment yesterday…
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| Schiff: “US Is In A Gigantic Bubble… & Covid-19 Is Going To Be The Pin”Schiff: “US Is In A Gigantic Bubble… & Covid-19 Is Going To Be The Pin” While yesterday’s collapse in stocks has been broadly blamed on worsening Covid-19 headlines; Peter Schiff, the CEO and chief global strategist at Euro Pacific Capital, dug a little deeper into the real problems behind the market’s fragility on RT’s Boom Bust this week. According to Schiff,A “the bond market is telegraphing right now that we are going to have several more rate cuts, I think between now and the end of the year.” In fact the market is pricing in almost 2.5 rate cuts by the end of 2020… |
| Another green shoot? Slump in bank lending may soon bottom outAnother green shoot? Slump in bank lending may soon bottom outBank loan may grow at about 6% this fiscal, while gross credit off take may rise 8-9% in FY21, Crisil said. |
| Bandhan Bank gets relief from the RBIBandhan Bank gets relief from the RBIThe Central Bank has allowed the Bandhan Bank to open branches without its prior approval. |
| Why India needs to scrap its sedition lawWhy India needs to scrap its sedition lawSedition law was enacted by the British to suppress any Indian dissent. This colonial relic cries out for abolition. |
| LIVE: Current Weather And Forecasts Up To 7 Days – Tuesday February 25, 2020Written by Sig Silber Headlines – “…February ending with a winter storm across the Great Lakes region…” This article provides continuous updates for a variety of Weather and Weather-Related Threats as well as a general weather forecast. These are “Live” maps that continually update. Please pay attention to the Mesoscale Events maps — Mesoscale Events are potentially life-threatening situations. We include a Ski Report.
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| Mike Bloomberg and DebatesWritten by Frank Li For Mike Bloomberg at his first debate last week, what a big disaster (Bloomberg Admits Defeat In First Debate Performance: Real Winner” Was Donald Trump), and what a missed opportunity (Mike Bloomberg’s Debut Hands NBC News the Most-Watched Democratic Debate Ever)!
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| Key Words: Suze Orman says investors should ‘rejoice’ at the Dow’s more-than-1,000-point tumble on Monday ” here’s whySuze Orman says investors should stay the course and explains why she thinks investors worried about their retirement savings after a historic downturn for the Dow Jones Industrial Average should welcome such selloffs. |
| Market Extra: The Dow just logged its worst 2-day point slide in history ” here are 5 reasons the stock market is tanking and it isn’t just the coronavirusThe U.S. stock market rally is starting to unravel, with a period of historic gains coming to a screeching halt, as fears the coronavirus epidemic may reach America rattles Wall Street. |
| Baby Yoda and Barbie signal opportunity for MattelMattel says it will focus on plush toys and Barbie expansion in 2020. |
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