Stock Market News For Mar 9, 2020

U.S. equities closed lower on Friday as investors were rattled by the number of coronavirus cases hitting 100,000 around the globe, and oil prices tanking by the most in five years. On the other hand, demand for safe haven assets increased. Gold prices made its biggest weekly gain (in the week ended Mar 7) since 2016. In addition, demand for U.S. debt increased, dragging the U.S. 10-year Treasury yield to a new record low of below 0.8%.

The three major indexes— the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite — closed in the red on Friday. The Dow Jones Industrial Average closed at 25,864.78 after losing 1%, the broader S&P 500 reached 2,972.37 after declining 1.7% and the tech-laden Nasdaq Composite hit 8,575.62 after decreasing 1.9%.

The fear-gauge CBOE Volatility Index (VIX) increased 5.5% to close at 41.94 on Jan Mar 6. Finally, decliners outnumbered advancers on the NYSE by a 7.53-to-1 ratio.

COVID-19 Cases Cross 100,000 Globally

Stocks finished the week ended Mar 7 with steep losses after the number of total affected people worldwide crossed 100,000. Investors and businesses were concerned by the toll the disease would take on economic activity.

Further pressure was placed on stocks as investors turned their attention to safe haven assets such as gold. Gold for April delivery inched 0.3% higher in Friday’s session, and closed at $1,672.40 an ounce.

Oil Futures Nosedived 10%

On Mar 6, oil futures witnessed the biggest daily slump since 2014 after the Organization of the Petroleum Exporting Countries and Russia (OPEC+) failed to reach a deal to cut production.

The OPEC+ were attempting to steady oil prices by reducing output after production cuts that were already approved. But they failed to reach an agreement on Mar 6, which was their third day of meet. The oil producers failed to agree on the proposed new production cuts of 1.5 million barrels per day.

West Texas Intermediate crude for April delivery shed $4.62, or 10.1%, to settle at $41.28 a barrel. Friday’s settlement was the contract’s lowest since August 2016. May Brent crude, the global crude benchmark, declined $4.72, or 9.4%, to end at $45.7 a barrel. Mar 6 closing was the contract’s lowest settlement since June 22, 2017.

Economic News

According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment in the country increased by 273,000 in February. Job additions were broad-based, with notable job gains in healthcare and social assistance (57,000), food services and drinking places (53,000), construction (42,000) and professional and technical services (32,000). In addition, financial services added 26,000 new jobs and government employment rose by 45,000.

The unemployment rate was little changed at 3.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weekly Roundup

The coronavirus scare hung heavy on market sentiment throughout the week ended Mar 7, as markets extended the selloff. Stocks remained in the red mostly, as the tech-laden Nasdaq Composite closed the week 0.4% lower. The broader S&P 500 and Dow inched upward by just 0.2% and 1% for the week respectively. Continued losses for the S&P 500 erased gains by the index earlier in the week.

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