A dreadful employment report in March provides insight into the devastating economic damage caused by the coronavirus pandemic. A new surge in oil prices on expected production declines has limited stock market losses. Main equity averages suffered its third week of losses out of four as the coronavirus crisis worsened. Here is what happened:
4:22 p.m .: sell-off in figures
- Dow closed down 1.69% for its third negative day in four
- Since the start of the week: Dow closed down 2.7% for its third negative week in four
- Year-to-date: Dow Jones down 26.23%, the worst year since 2008, when Dow Jones lost 33.64%
- The Dow Jones is 28.8% lower than its record high of 29,568.57 as of February 12.
- S&P closed down 1.51% for its third negative day in four
- Since the beginning of the week: S&P closed down 2.08% for its third negative week out of four
- Year-to-date: S&P down 22.97%, the worst year since 2008 when the S&P lost 38.49%
- S&P is 26.66% below its all-day intraday record of 3,393.52 since February 19.
- NASDAQ closed down 1.53% for its third negative day in four
- Since the start of the week: NASDAQ is down 1.72% for its third negative week in four
- Year-to-date: NASDAQ down 17.83%, the worst year since 2008, when NASDAQ lost 40.54%
- NASDAQ is 25.1% from its all-day intraday record of 9,838.37 on February 19. – Francolla
4:15 p.m. Trump says “ we’re going to fix this ” and “ get our energy back ” at a meeting with oil CEOs
President Donald Trump said the United States would “resume our energy business,” as he met with oil executives from at least seven companies amid the ongoing slump in oil prices. “We will settle this and we will resume our energy activities. I am with you 1000%. It is an excellent business, it is a very vital activity,” he said. Trump added that he is “very seriously considering” a package of infrastructure. The meeting included CEOs from Exxon, Chevron, Occidental Petroleum, Devon Energy, Phillips 66, Energy Transfer Partners and former CEO of Continental Resources, Harold Hamm. Trump has again reaffirmed that Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin want to reach an agreement on oil production. – Stevens
4:01 p.m .: Dow closes lows, down 350 points
The 30-stock Dow Jones ended the wild session with around 350 points after dropping 550 points to its lowest point of the day. On Friday, the S&P 500 and the Nasdaq fell 1.5% each. The top three averages posted their third week of losses out of four as the coronavirus crisis worsened. – Li
3:35 p.m .: Fed slows purchases next week
The Federal Reserve will cut purchases of T-bills and mortgage-backed securities next week. The central bank will buy about $ 50 billion in treasury bonds a day, up from $ 75 billion this week. Mortgage purchases have gone from $ 40 billion to $ 25 billion. The 10-year Treasury yield climbed in afternoon trading and is now around 0.61%, slightly below Thursday’s final price. – Delivered
3:15 p.m .: Walmart shares rise after report says sales jumped 20% in past month
Walmart shares rose as the latest trade rose 0.12% after the Wall Street Journal reported that the retailer had seen increased store sales in the midst of the coronavirus crisis. Sales at Walmart’s 4,700 stores in the United States have increased by almost 20% in the past four weeks compared to the same period last year, according to documents consulted by the Journal. – Li
3:13 pm: “Expect it to last longer,” says Michael Farr
Michael Farr, CEO of Farr, Miller and Washington, told CNBC investors that they must refrain from making “emotional decisions” despite persistent market volatility. “Expect something worse than your bad script,” advised Farr on “Power Lunch”. “Expect stocks to fall another 10-20% from your current low. Expect it to last longer, so you won’t be shocked and surprised and say,” D “Okay, I can think of a way.” By not panicking and keeping a long-term view, Farr said investors will benefit from the high quality names on sale. – Stankiewicz
2:56 p.m .: Oil posts the best week in its history
- WTI (MAI) settles 11.93% at $ 28.34 per barrel
- WTI closed 31.75% higher this week for its best week ever (back to start of contract in 1983)
- However, the WTI is down 53.59% this year, on the pace of its worst year ever recorded since the creation of the contract in 1983— Francolla
2:54 p.m .: Last trading hour: stocks head for third weekly loss in four
With about an hour remaining in the trading session, the main averages were about to post their third weekly decline in four. The Dow Jones lost more than 400 points, or 2.1%, for the session while the S&P 500 and the Nasdaq also fell more than 2%. For the week, the Dow Jones fell more than 3%. The S&P 500 and Nasdaq were heading for weekly losses of 2.7% and 2.4% respectively –Imbert
2:07 p.m .: NYSE decliners lead 6-1 advances
More than six stocks fell on the New York Stock Exchange on Friday for each advertiser on Friday, as the market sold out to end another volatile week. Overall, more than 2,500 stocks traded lower, while around 370 are higher, according to FactSet data. –Imbert
1:28 p.m .: Employment data for March show off-limits layoffs in restaurants and bars
Massive layoffs in restaurants and bars made March 2020 one of the worst months for American jobs in the modern era, with the Department of Labor reporting that the wage bill had dropped by 701,000 during the month. Companies that prepare meals, snacks and drinks for customers for consumption on the premises (restaurants and sit-down bars) or off-premises (delivery and take-out) saw their payroll drop by 417,000. The largest sector recreation and hospitality, which includes the 417,000 drop in the food services industry, saw its payroll fall by 459,000, as hotels and other accommodation businesses also cut jobs. This drop in employment almost offset gains in the industry in the previous two years. – Franck
1:22 p.m. Putin reportedly said cuts to oil production would be possible if global players participate
Russian President Vladimir Putin said on Friday that joint action is needed to support the drop in oil prices and that a reduction in production by 10 million barrels a day is possible if global players participate, according to a report by Reuters. OPEC and its allies, including Russia, are scheduled to hold a virtual meeting on Monday to discuss oil policy. Later today, President Donald Trump will meet with at least seven energy leaders at the White House, including the CEOs of Chevron and Exxon. West Texas Intermediate crude oil traded 6.8% at $ 27.05 a barrel, while international benchmark crude Brent rose 9.5% to $ 32.75. Putin’s comments come a day after Trump told CNBC on Thursday that he expected Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman to announce a deal to cut oil production from 10 to 15 million barrels. – Stevens
12.56 p.m .: The coronavirus pandemic is far worse than the global financial crisis, says IMF chief
The coronavirus pandemic has caused a financial crisis “like no other,” said a senior official at the International Monetary Fund on Friday. “Never in the history of the IMF have we seen the world economy stalled,” said Kristalina Georgieva, Managing Director of the IMF. “It is much worse than the global financial crisis” of 2008-2009, said Georgieva at a press conference of the World Health Organization. –Dan Mangan
12:15 p.m .: Home builders, retailers and banks all lost about 10% this week
- The Residential Construction ETF (ITB) is down 16% from the start of the week, on pace for its third negative week in four and down more than 42% this year.
- The laggards among home builders this week include Taylor Morrison Home, PulteGroup and TopBuild, all of which fell more than 20%.
- The banks’ ETF (KBE) is down more than 10% this week, on the pace of its sixth negative week in September.
- MGIC Investment (MTG) and Radian Group have lost more than 30% each this week.
- Retail ETF (XRT) is down almost 10% this week, to the rate of its fifth negative week out of six. – Francolla
11:45 a.m .: Noon markets: stocks plummet after steep increase in coronavirus deaths in New York, ugly job data
Around noon, the major averages fell sharply, with investors digesting a massive peak of conronavirus-related deaths in New York and a grim employment report. The Dow Jones lost more than 300 points, or 1.6%. The S&P 500 and the Nasdaq also fell by more than 1%. Friday’s drop accelerated the averages for their third weekly defeat in four. – Imbert
11:26 a.m .: Cuomo says New York State had the biggest jump in coronavirus deaths Thursday
Governor Andrew Cuomo said Friday that 2,935 New Yorkers have died from the coronavirus in the past 24 hours, the largest increase in deaths since the epidemic began a few weeks ago. “The curve continues to go up,” Cuomo said at a press conference in Albany, referring to the number of new COVID-19 cases across the state. There are 102,863 confirmed cases across the state, a 10% jump overnight, according to charts presented at the press conference. New York City alone has 57,159 cases in total, up from 5,350 in the past 24 hours. – Noah Higgins-Dunn
11:22 a.m .: April will be the worst month for GDP and unemployment will reach 15%, according to a Goldman economist
Goldman Sachs chief economist Jan Hatzius said in “Squawk on the Street” that Friday’s employment report was “out of date” and that the unemployment rate would more than triple as the crisis of coronaviruses continued.
“We think that over the next few months we will hit an unemployment rate of 15%, and I think the claims numbers are consistent with that, assuming that we will hit other millions in the weeks to come”, said Hatzius.
Goldman also projected second quarter GDP at an annualized growth rate of -34% compared to the same quarter last year. “We think April will be the worst month. We are down about 13% from January … and after April we have a slow recovery in the level of production built into the forecast,” said Hatzius.
Even with a recovery, Hatzius said unemployment would still be more than double Friday’s reading until the end of the year. “8% by the end of the year is more optimistic than what we have. But we think that in the second half of the year we will see a drop in unemployment … but from an extremely high level. We let’s end the year in our forecast at 9.5 “%, but there is obviously a lot of uncertainty,” said Hatzius. Delivered
11:02 a.m .: The Fed’s balance sheet is now close to $ 6 trillion
A wave of activity to support the functioning of the market and the economy has brought the Federal Reserve’s balance sheet to nearly $ 6 trillion. The central bank’s latest deposit shows that its assets increased to $ 5.86 trillion, up $ 557 million or 10.5% a little more than last week. Purchases of treasury bills and mortgage-backed securities fuel growth, as well as the Fed’s accelerated currency swaps with other central banks around the world. Swaps alone have added nearly $ 300 billion in the past two weeks. Economists believe that by the time the Fed cuts purchases, the balance sheet could approach $ 10 trillion. – Beetle
10:48 a.m .: Wall Street analysts continue to upgrade their stocks amid continued market volatility, including Twitter and Lululemon
- Goldman Sachs has upgraded Twitter to buy on neutral.
- Rosenblatt launched Peloton as a takeover.
- B. Riley FBR upgraded Lululemon and Abercrombie & Fitch to buy neutral and upgraded Under Armor to neutral to sell.
- Credit Suisse downgraded Shake Shack from neutral to overweight.
- RBC demoted Ralph Lauren to make the sector perform better.
- Deutsche Bank has upgraded Walgreens Boots Alliance so that it will no longer be sold. – Flowering
10:45 a.m .: Three S&P 500 stocks hit 52-week lows in wild session
- Nordstrom fell 7%, trading at lows never seen since March 2009
- Kohl’s fell 7%, trading at lows never seen since April 1997
- People’s United Financial fell 2.4%, trading at lows never seen since August 2004 –Hayes
10:41 a.m .: Equities accelerate losses, Dow drops 300 points
In the morning session, stocks extended their losses as the Dow Jones Industrial Average fell more than 300 points or 1.4%. The S&P 500 lost 1.1% and the Nasdaq fell 0.95%. – Fitzgerald
10:21 a.m .: Another job figure portrays an even darker picture
As if the 701,000 drop in nonfarm wages in March was not bad enough, a separate count shows that the drop in jobs could have been even worse. The Labor Department’s household survey, which is used to calculate the unemployment rate, showed a drop of almost 3 million in the ranks of wage earners. This figure only reflects activity during the week ending March 12, but indicates even greater damage to come. – Beetle
9:31 a.m .: Dow opens 100 points less
The Dow Jones Industrial Average fell about 100 points at the opening. Investors digested the March jobs report, which showed the first drop in non-farm wages since 2010. The report highlighted layoffs before the widespread closings took effect. The S&P 500 and Nasdaq fell 0.2% and 0.1% respectively. Rising oil prices supported the market. – Li
9:07 am: oil rally in figures
- WTI is up nearly 31% this week, on the pace of its best week ever recorded (return to the creation of the contract in 1983)
- This statistic will remain true as long as the WTI closes at more than 28.4% or until it is its best week since August 8, 1986.
- WTI is still down 54.42% this year – Francolla
8:37 a.m .: Most jobs have declined in a decade, US wages drop by 701,000 in March
The US payroll dropped by 701,000 in March, according to the Department of Labor. This report is the first decline in employment since 2010 and the worst impression since 2009. The unemployment rate rose to 4.4% from 3.5% as employers have just started cutting wages before the practices of social distancing that have shut down large swathes of the US economy in order to stop the spread of the virus. Economists polled by Dow Jones were looking for a drop in 10,000 workers and an unemployment rate of 3.7%. The equity futures contracts extended their losses following the report. – Cox, fitzgerald
8:17 a.m .: Oil jumps on hopes of reducing production
Oil prices rose on Friday in the hope that a production reduction agreement will be reached soon after OPEC and its allies announced that they will meet on Monday to discuss oil policy, and after that Reuters has announced that Russian producers are ready to make cuts in an effort to stop the price rout. Crude oil from the West Texas Intermediate jumped 6.8% to trade at $ 27.03 per barrel, while the international benchmark Brent rose 12.7% to trade at $ 33.72 . WTI and Brent released their best day in history on Thursday after President Donald Trump told CNBC he expected Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman to announce an agreement to reduce oil production from 10 to 15 million barrels, although the exact details of the cut remained unclear.
Despite Thursday’s surge, WTI lost 42% in the past month as demand fell from a cliff, with more and more people staying at home thanks to the coronavirus epidemic. Meanwhile, a price war between Saudi Arabia and Russia broke out in early March, which also weighed on prices. Trump will meet with the CEOs of at least seven energy companies – including Exxon and Chevron – to discuss energy policy on Friday. – Stevens
8:12 a.m .: March employment report should post the largest drop in payroll since 2011
The Department of Labor jobs report for March, scheduled for 8:30 am ET, is expected to show that the US non-farm payroll has dropped by 100,000. But the government’s investigation for the report was conducted before many states began ordering residents to stay at home, which means that the March report will likely underestimate the current rate of job losses, as seen in the demand figures unemployment on Thursday. This report showed a record 6.6 million Americans deposited for benefits during the week ended March 28. However, if Friday’s report meets the expectations of economists by showing a drop of 100,000 payrolls, it will be the first time that the monthly employment report will post a large since February 2011. –Franck
8:01 a.m .: update on the coronavirus: more than a million confirmed cases worldwide
The rapidly spreading coronavirus has infected more than a million people worldwide, according to Johns Hopkins University. More than 53,000 people have lost their lives due to the deadly virus. The top five countries for infections are the United States, Spain, Italy, Germany and China. UK Health Minister Matt Hancock reportedly said on Friday that the deadliest peak in Britain’s coronavirus epidemic could be Easter Sunday. The number of people who died from coronavirus in Spain, however, experienced its first daily decline since March 26. Nationally, the White House monitors coronavirus hotspots in New York and New Jersey. Some 35% of all coronavirus tests administered in New York and New Jersey have been positive, indicating a serious epidemic in both states, said White House coronavirus advisor Dr. Deborah Birx said on Thursday. –Fitzgerald
7:56 a.m .: Tesla shares an increase in the number of deliveries
Tesla shares on Friday rose more than 16% in trade before the market, with better than expected deliveries. The automaker delivered around 88,400 vehicles in the first quarter of 2020, exceeding expectations by around 79,900, according to FactSet. In a conference call, CEO Elon Musk and CFO Zachary Kirkhorn said Tesla should “comfortably exceed” the sales of 500,000 electric vehicles in 2020. –Li
7:44 a.m .: Equity futures fall after Thursday rally, Wall Street awaits employment report
Wall Street was set to return some of the significant gains from the previous session, as investors awaited the release of the latest monthly employment data. The Dow Jones Industrial Average futures fell 174 points, or 0.8%. The S&P 500 and Nasdaq 100 futures contracts were down 0.7% each. The losses came after the Dow Jones and the S&P 500 both gained more than 2% on Thursday. Jobs report for March expected to be released at 8:30 am –Imbert
—With reports from Jesse Pound, Tom Franck, Jeff Cox, Michael Bloom, Chris Hayes, Kevin Stankiewicz, Pippa Stevens and Gina Francolla.
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