Dow tumbles 1,000 points for third time this week as Friday’s sell-off worsens

[tacobell fan]

Stocks tumbled once again on Friday, adding to the market’s worst week since the financial crisis, as worries over the coronavirus and its impact on the economy continue to rattle investor sentiment.

The Dow Jones Industrial Average dropped 1,000 points, or more than 4%, to trade below 25,000. The S&P 500 slid 4% while the Nasdaq Composite fell 3%.

 

The major averages were under pressure on Friday in part because investors kept adding to their bond-market exposure and fleeing equities. The benchmark U.S. 10-year Treasury yield touched a fresh record low. It was last at 1.18%. Yields move inversely to prices.

New Zealand and Nigeria reported overnight their first coronavirus cases. South Korea, meanwhile, confirmed more than 500 new cases. China reported 327 additional cases.

Caterpillar — a bellwether stock for global growth — slid 3%. Apple shares dropped 5.7% while Boeing and Coca-Cola also fell more than 5%.

The Cboe Volatility Index, also known as Wall Street’s so-called fear gauge, hit a high of 47.15, its highest level since February 2018. It last trade around 41.

The Dow plummeted nearly 1,200 points on Thursday — its biggest one-day point drop ever — as worries over the coronavirus possibly spreading sent stocks spiraling lower. The 30-stock average closed in correction territory along with the S&P 500 and Nasdaq Composite.

“The reason it happened so quickly is because the momentum going up was so great,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “The hedge funds, the algorithmic trading, the quants: They play on momentum.”

The Dow had closed at a record high on Feb. 12. It only took the S&P 500 six days to fall from an all-time high into correction levels, marking the broad index’s fastest drop of that magnitude outside of a one-day crash.

“People have been so preconditioned to buy the dip and to always expect the market to recover that people can get smacked around with moves like this,” said Patrick Hennessy, head trader at IPS Strategic Capital. “No one knows how this thing ends.”

Thursday’s declines also put the Dow and S&P 500 down more than 10.5% each for the week, on pace for their worst weekly performance since 2008. Norwegian Cruise Line and American Airlines are among the worst-performing S&P 500 stocks this week, dropping more than 20% in that time. Las Vegas Sands has lost more than 10% week to date.

“The timing of this was just the worst with respect to investor sentiment being elevated,” said Doug Ramsey, chief investment officer at The Leuthold Group, referring to the coronavirus outbreak. “I’m not sure that the market has really priced in the potential economic impact of this.”

Concerns over the coronavirus have also led several companies to issue earnings and revenue warnings. Microsoft said Wednesday one of its key divisions may not meet the company’s previous revenue guidance. PayPal also warned about its outlook on Thursday.

Goldman Sachs’ David Kostin warned U.S. companies will see no earnings growth this year. “Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty,” said Kostin, the bank’s chief U.S. equity strategist.

The outbreak has also raised questions over potential intervention from central banks around the world. Kevin Warsh, a former Federal Reserve governor, told CNBC’s “Squawk Box” he expects global monetary policy makers to take action soon in response to the virus spreading. However, St. Louis Fed President James Bullard said rate cuts are only a possibility if the coronavirus turns into a pandemic.

[AndhraneedSCS]

ee week record create chestama?

[Scada]

[Scada]

KOTTABOTUNNAM

[tacobell fan]

Just now, AndhraneedSCS said:

ee week record create chestama?

It already did nataraja. Day 2 ne. Worst since 2008 Great recession.

[tacobell fan]

Just now, Scada said:

KOTTABOTUNNAM

enti adi?

[AndhraneedSCS]

Just now, tacobell fan said:

It already did nataraja. Day 2 ne. Worst since 2008 Great recession.

2008 lo week lo entha padindhi?

 

aa record ni kuda break cheyyali ga 

[Scada]

Just now, tacobell fan said:

enti adi?

its a good time to enter into market  no.. ala

[Hydrockers]

Towards 20k ani aaku gadu cheppada

[AndhraneedSCS]

Just now, Scada said:

its a good time to enter into market  no.. ala

ee roju good time? leka inko month tarvatha good time vastada? 

[tacobell fan]

Just now, AndhraneedSCS said:

2008 lo week lo entha padindhi?

aa record ni kuda break cheyyali ga 

Its based on % decline since then lo chustaru not by points because DOW index has shifted in 1000 of points over a decade. 

[Scada]

Just now, AndhraneedSCS said:

ee roju good time? leka inko month tarvatha good time vastada? 

emo adi telidu 

[tacobell fan]

2 minutes ago, Scada said:

its a good time to enter into market  no.. ala

[r2d2]

[Sreeven]

4 minutes ago, AndhraneedSCS said:

2008 lo week lo entha padindhi?

 

aa record ni kuda break cheyyali ga 

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