No Name, Roller-coaster week ends with bond yields, stocks sinking

[Image]( EMAIL}/redirect (Advertisement) Posted on Friday, March 6th, 2020 By Stan Choe And Alex Veiga, AP Business Writers NEW YORK (AP) — A dizzying, brutal week of trading dropped one last round of harrowing swings on investors Friday. After skidding sharply through the day as fear pounded markets, steep drops for stocks and bond yields suddenly eased up in the last hour. By the end of trading, the S&P 500 had more than halved its loss for the day to 1.7% and even locked in a gain for the week. It's the latest lurch in a wild ride that has sent stocks flipping between huge gains and losses — mostly losses the last two weeks. Investors are trying to guess how much economic damage the coronavirus will ultimately inflict, and they're shifting by the minute as the number of new infections piles up on one hand and central banks and governments offer stimulus on the other. All the uncertainty has left markets churning. “It’s anyone’s guess at this point why it rallied into the close,” Adam Taback, chief investment officer for Wells Fargo Private Bank, said of the last hour of Friday's trading. EMAIL}/redirect (Advertisement) Earlier in the day, the S&P 500 had been down 4%. Even more alarming was another breathtaking drop in Treasury yields to record lows. The 10-year Treasury yield falls when investors are worried about a weaker economy and inflation, and it sank below 0.70% at one point. Earlier this week, it had never in history been below 1%. It was at 1.90% at the start of the year, before the virus fears took hold. Even a better-than-expected report on U.S. jobs wasn't enough to pull markets from the undertow. It's usually the most anticipated piece of economic data each month, but investors looked past February's solid hiring numbers because they came from before the new coronavirus was spreading quickly across the country. “The bond market says the monster under the bed is much bigger and scarier than anyone expects right now,” said Ryan Detrick, senior market strategist at LPL Financial. EMAIL}/redirect (Advertisement) At the heart of the drops is the fear of the unknown. The virus usually causes only mild to moderate symptoms. But because it's new, experts aren't sure how far it will spread and how much damage it will ultimately do, both to health and to the economy. The number of infections has topped 100,000 worldwide and businesses are reporting hits to their earnings. Danger for companies is coming from two sides. On the supply side, for example, Apple has said slowdowns in manufacturing iPhones in China will hurt its sales totals. On the demand side, an airline industry group says the outbreak could lose as much as $113 billion in revenue as people cancel trips. Friday's drop for the S&P 500 was the latest swing in a remarkably turbulent week. It started off with a 4.6% jump on Monday, then fell 2.8%, rose 4.2% and fell 3.4%. “At this point no one can really explain why the markets behave the way they do, and what may be next," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. "The only thing we can say is this high volatility is bad." It was only two weeks ago that the S&P 500 set a record high, on Feb. 19. It’s lost 12.2% since then. The bond market sounded the alarm on the effects of the virus long before the stock market, and yields fell further Friday. The Fed surprised the market earlier this week by cutting interest rates half a percentage point. Investors expect other central banks around the world to follow suit in hopes of supporting markets. Eric Rosengren, president of the Boston Federal Reserve Bank, said Friday the Fed could start using new tools to combat a downturn, such as buying a broader range of financial assets. At the same time, doubts are high about how much effect lower rates can have. Cheaper loans may encourage people and business to make big purchases, but they can't get workers back into factories if they're out on quarantine. A boost for stocks came earlier this week after Congress agreed on an $8.3 billion bill to combat the coronavirus, which President Donald Trump signed Friday. But investors say a slowdown in the economy seems inevitable, and many analysts expect the market's sharp swings to continue as long as the number of new cases accelerates. “As the market tries to find its bottom, it's going to go up and down, up and down, until it has a reason to steadily change in one direction or the other,” said Taback of Wells Fargo Private Bank. MARKET ROUNDUP: The S&P 500 fell 51.57, or 1.7%, to 2,972.37. It rose 0.6% for the week. The Dow Jones Industrial Average lost 256.50, or 1%, to 25,864.78. The Nasdaq fell 162.98, or 1.9%, to 8,575.62. The yield on the 10-year Treasury dropped to 0.77% from 0.92% late Thursday. It rallied from as low as 0.66% earlier in the day, according to Tradweb. Benchmark U.S. crude tumbled $4.62, or 10.1%, to settle at $41.28 per barrel. It was the worst day for oil in more than five years. Brent crude, the international standard, dropped $4.72, or 9.4%, to $45.27. In Europe, the French CAC 40 dropped 4.1%, and the German DAX lost 3.4%. The FTSE 100 in London fell 3.6%. Japan's Nikkei 225 fell 2.7%, South Korea's Kospi lost 2.2% and stocks in Shanghai dropped 1.2%. Gold rose $4.40 to settle at $1,672.40 per ounce. Silver fell 13 cents to $17.26 an ounce, and copper slipped 1 cent to $2.56 a pound. Wholesale gasoline fell 13 cents to $1.39 a gallon, heating oil fell 10 cents to $1.39 a gallon and natural gas lost 6 cents to $1.71 per 1,000 cubic feet. EMAIL}/redirect (Advertisement) To get Exclusive Offers make sure you grab your cellphone (which you are probably doing right now) and join our VIP text messaging list (standard text and messaging rates may apply)to make it even easier, if you are on your cell phone now click this Button Below: [SIGN ME UP NOW]( © 2019 PTE.la PTE, LLC (publisher of PTE.la) is NOT registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of this website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information included on this website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that owners, employees and writers of and for PTE, LLC may have long or short positions in securities that may be discussed on this website or newsletter. Past results are not indicative of future profits. This table is accurate, though not every trade is represented. Profits and losses reported are simulated figures from virtual simulated portfolios. We are engaged in the business of advertising and promoting companies for monetary compensation. All content in our releases is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a solicitation of the purchase or sale of any securities. PTE.la’s sponsored advertisements do not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as are commendation by PTE.la or an offer or solicitation to buy or sell any security. Neither the owner of PTE.la nor any of its members, officers, directors, contractors or employees is licensed broker-dealers, account representatives, market makers, investment bankers, investment advisors, analyst or underwriters. Investing in securities, including the securities of those companies profiled or discussed on this website is for individuals tolerant of high risks. Viewers should always consult with alicensed securities professional before purchasing or selling any securities of companies profiled or discussed in our releases. It is possible that a viewer’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. Remember, never invest in any security of a company profiled or discussed in a release or on our website unless you can afford to lose your entire investment. Also, investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. To review our complete disclaimer and additional information, please visit . PTE.la makes no recommendation that the securities of the companies profiled or discussed in our releases or on our website should be purchased, sold or held by investors. PTE.la is owned and operated by PTE LLC. PTE LLC has not been compensated for this specific email, we do have advertisements in this email that we get paid if you click one of the ads (we have not investigated any of the advertisements). Any compensation received by PTE LLC constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. A third party of PTE LLC may have shares and may liquidate, which may negatively affect the stock price. PTE LLC affiliates may at any time have a position in the securities mentioned herein and may increase or decrease such positions without notice which will negatively affect the market. Some of the content in this release contains forward - looking information within the meaning of Section 27 A of the Securities Act of 1 9 9 3 and Section 21 E of the Securities Exchange Act of 1 9 3 4 including statements regarding expected continual growth of the profiled company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect a company's actual results of operation. A company's actual performance could greatly differ from those described in any forward - looking statements or announcements mentioned in this release. Factors that should be considered that could cause actual results to differ include: the size and growth of the market for the company's products; the company's ability to fund its capital requirements in the near term and in the long term; pricing pressures; unforeseen and/or unexpected circumstances in happenings; etc. and the risk factors and other factors set forth in the company’s filings with the Securities and Exchange Commission. However, acompany’s past performance does not guarantee future results. Generally, the information regarding a company profiled is provided from public sources which we believe to be reliable but is not guaranteed by us as being accurate. Further specific financial information, filings and disclosures as well as general investor information about the profiled company, advice to investors and other investor resources are available at the Securities and Exchange Commission (“SEC”) website www.sec.gov and the Financial Industry Regulatory Authority (“FINRA”) website at www.finra.org. Any investment should be made only after consulting with a qualified investment advisor and reviewing the publicly available financial statement and other information about the company profiled and verifying that the investment is appropriate and suitable. PTE.la makes no representations, warranties or guarantees as to the accuracy or completeness of the information provided or discussed. Viewers should not rely solely on the information obtained in this release or on our website. PTE Team 9 Downing street Newark NJ 07105 USA [Unsubscribe]( | [Change Subscriber Options](