Written by Gary
DOW plunges despite the Fed cutting rates (SPY -2.9%). The bond-market’s 10-year Treasury note benchmark maturity plunges below 1%.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Fed cuts rates in emergency move to blunt coronavirus impactThe U.S. Federal Reserve cut interest rates on Tuesday in a bid to shield the world’s largest economy from the impact of the coronavirus, but the emergency move failed to comfort U.S. financial markets roiled by fears of a deep and lasting slowdown. |
| Oil lower on coronavirus fears despite Fed rate cut and hopes for OPEC+ output cutThe global oil benchmark ended Tuesday slightly lower under pressure from falling equities, but the losses were contained slightly as top producers considered more output cuts to support prices and the Federal Reserve cut U.S. interest rates to support the economy. |
| Stocks slide, 10-year Treasury yield hits record low after Fed’s emergency rate cutGlobal equity markets slid on Tuesday and the yield on 10-year U.S. Treasuries fell below 1% for the first time after the Federal Reserve cut interest rates in an emergency move to shield the U.S. economy from the impact of the fast-spreading coronavirus. |
| JPMorgan tests U.S. virus plan with thousands working from home: Bloomberg NewsJPMorgan Chase & Co is asking thousands of U.S. employees to work from home as it tests a contingency plan for closing domestic offices should the coronavirus spread, Bloomberg News reported on Tuesday. |
| Fed virus-driven cut may test new approach to inflationU.S. Federal Reserve officials have slashed interest rates half a percentage point because of the coronavirus. |
| Wall Street tumbles after Fed surprise rate cutWall Street tumbled in a volatile session on Tuesday after the Federal Reserve surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus’ impact on the economy. |
| Fed’s Mester says coronavirus outbreak could weigh on U.S. economic growthThe coronavirus outbreak muddied the outlook for U.S. economy and could weigh on growth in the first half of this year, Cleveland Federal Reserve Bank President Loretta Mester said in London Tuesday. |
| U.S. sues Mallinckrodt, accuses drugmaker of defrauding MedicaidThe United States sued a unit of the drugmaker Mallinckrodt Plc on Tuesday, accusing it of defrauding Medicaid out of hundreds of millions of dollars as a result of “meteoric” price increases for its biggest-selling drug, Acthar Gel. |
| OPEC, Russia moving closer to big oil cut as coronavirus hits demandA panel of OPEC and its allies recommended cutting oil output by an extra 1 million barrels per day (bpd) on Tuesday signaling that Russia and Saudi Arabia were moving closer to a deal to prop up prices which have been hit by the coronavirus outbreak. |
| Not-So-Super Tuesday: Fed’s Shock-And-Awe Fails, Sparks Market TurmoilNot-So-Super Tuesday: Fed’s Shock-And-Awe Fails, Sparks Market Turmoil People were already panicking… (empty water shelves at Costco) |
| “It Smells Like Panic”: This Is Not What Powell Had In Mind…“It Smells Like Panic”: This Is Not What Powell Had In Mind… Commenting on the Fed’s emergency rate cut, which while expected was extremely unusual and only the first one since the financial crisis, Obama’s chief economic advisor Larry Summers laid out the problem Powell is facing, especially now that the Fed appears to have lost much of its remaining credibility:
While Larry Summer’s opinion has been repeatedly discredited over the years, he does bring up a valid point: why is the Fed wasting half of all of its ammo just to delay what is now an inevitable crash, and why scramble with an “intermeeting” cut when it could have jawboned for the next two weeks and waited until the regular March 18 FOMC meeting. If anything, it would at least eliminate the sense of Fed panic from the equation. Instead, as it stands, “it smells like panic” as more than one Wall Street veteran put it. Worse, as BMO’s Ian Lyngen puts it, what happened after the Fed’s emergency 50bps rate cut, the biggest since Jerome Kerviel blew up SocGen, “the situation didn’t play out exactly as Powell might have envisioned.” So just how bad is it? Well, as plunging stocks demonstrate, the Fed i … |
| DoD Official Admits Covid-19 “Likely” To Be A Pandemic Within The Next 30 DaysDoD Official Admits Covid-19 “Likely” To Be A Pandemic Within The Next 30 Days Authored by Daisy Luther via The Organic Prepper blog, In a document obtained by Newsweek, Department of Defense officials said that Covid-19 will œlikely become a global pandemic within the next 30 days. |
| US Death Toll Hits 9 As Virus Spreads To North Carolina: Live UpdatesUS Death Toll Hits 9 As Virus Spreads To North Carolina: Live Updates Summary: US virus death toll hits 9 2nd case confirmed in NY Spain reports 1st death 1st case confirmed in North Carolina Italy mulls cancelling all sporting events for a month 2nd NY case commuted to Manhattan, traveled to Miami Chile, Argentina report first cases Third case possibly identified in Fla. Stocks surge, then fade, after surprise 50 bp rate cut 4th person dies in France Fauci says we should know soon whether Gilead’s vaccine will work Son of Westchester corona case attended NYC school that closed Pope tests negative for coronavirus NYC high school closes over ‘suspected case of coronavirus’ Global case total passes 91,000 UK case total hits 51 US case total tops 100 across 15 states (including evacuees) South Korea case total passes 5,000; death toll hits 34 Italian death toll surpasses Iran Iran confirmed cases pass 2,000, 70+ dead Head of European football says Euro 2020 will go on 9 new cases confirmed in Japan * * * Update (1535ET): A special committee guiding Italy’s virus response has reportedly recommended that the government force the cancellation of every sporting event in the country for a month, stopping football just weeks before Euro 2020. Earlier, the organizers of Euro 2020 said the virus wouldn’t stop the tournament. As the virus spreads across the US, one notable standout is Hawaii, which hasn’t confirmed a s … |
| SBI board approves Rs 23,000-crore RCom resolution planSBI board approves Rs 23,000-crore RCom resolution planJio placed bid for Reliance Infratel’s tower and fibre assets & UVARC for assets of RCom & Reliance Telecom. |
| Is India Inc ready for the quantum leap?Is India Inc ready for the quantum leap?Budget 2020 has stood out for its special focus on technology, talent and infrastructure. |
| How to curb virus: Lessons from 1918 fluHow to curb virus: Lessons from 1918 fluThe 1918 flu could have been prevented. But a toxic mix of corruption and complacency opened door to disaster. |
| Savvy Ways To Build A Healthy Meal Plan Like A ProWritten by Econintersect Meal planning is one of the components to help you achieve a healthy lifestyle. It can help you lose weight and improve your diet. With a well-planned meal, you can maximize your chances of getting as many nutrients as you can by eating fresh and wholesome food.
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| Proposal to loosen ‘green card’ restrictions hits raw nerve on China’s internetRelaxing country’s notoriously stingy permanent residency status would allow rich to game the system, opponents say. |
| The Tell: Man who predicted the 2008 financial crisis says coronavirus may mean his bets of stock-market carnage are finally beginning to crystallizeIt’s times like these that get Peter Schiff’s blood running hot. The polarizing Wall Street prognosticator says that the Federal Reserve’s latest move, an emergency half-a-percentage-point interest rate cut on Tuesday to a 1-1.25% range for fed funds, may be the pin that ultimately pricks what he believes is a raging stock-market bubble. |
| Market Extra: The 10-year Treasury note yield just broke below 1%. Here’s how it happenedThe bond-market’s benchmark maturity plunges below 1% on Tuesday, a possibility that few analysts and investors contemplated at the beginning of the year. |
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