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Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a House Financial Services Committee hearing in Washington, D.C., on Tuesday, Feb. 11, 2020.
Andrew Harrer | Bloomberg | Getty Images
10:48 am: Powell says Fed will transition away from repo, but there's still big demand for it
Powell says the Fed will gradually transition away from repo operations, as it builds up reserves. But institutions were actively tapping the Fed's facilities early Tuesday, just before he spoke. The 14-day repo operation was oversubscribed, and that wasn't the only time lately. The Fed has been supplying extra funds to the short-term lending market, to make sure financial institutions have access to enough cash since last September, when repo rates spiked due to high demand. "We're raising the underlying level of liquidity by raising reserves to a level higher than where we thought were needed," he told Congress.The Fed accepted $26.6 billion in Treasurys but was offered $40.4 billion. The average weighted rate was 1.588%. The Fed took $3.4 billion in mortgages while $13.3 billion were offered. -Domm
10:45 am: Some interesting ETF highs Tuesday
10:41 am: Powell: It's 'too early to say' how much coronavirus will impact US economy
The Fed chairman thinks more information is needed before determining how the coronavirus outbreak will hurt the U.S. economy. "The question for us is what will be the effects for the U.S. economy? Will they be persistent? Will they be material?" Powell said while testifying in front of Congress. "I think it's just too early to say. We have to resist the temptation to speculate on this. So, we'll be watching that carefully." Global capital markets have been grappling with the outbreak as investors assess which companies and countries will take a hit from it. Powell also noted: "I think we know there will be effects on China through some part of the first half of the year and China's close neighbors and major trading partners." —Imbert
10:36 am Powell on the balance sheet expansion
"Our expectation is that we will continue our bill purchases at least through— at least into the second quarter and continue repo operations at least through — into April. The sense is that we're building up a level of reserves to a level that will mean that we don't have to be involved in open market operations on an ongoing basis. And that's going to take that period of time. And as the underlying level of reserves rises due to our bill purchases, the need for repo will decline. And sometime around the middle of the year we'll reach that level of ample reserves. And from that point forward, the balance sheet will grow at trend demand for our liabilities." - Franck
10:34 am: Dow hits record
The Dow just joined the S&P 500 and the Nasdaq Composite at record levels, up more than 130 points to session highs. The Dow's new record level is 29,415.39. -Melloy
10:22 am: Powell giving his opening statement
Fed Chairman Jerome Powell is giving his opening statement to the U.S. House Financial Services Committee, which was first released at 8:30 a.m. For a summary of that statement, click here. A live stream of Powell's testimony can also be found here.
10:16 am: Momentum ETF hits all-time high
The iShares Momentum ETF (MTUM) hit new intraday all-time high led by RingCentral, SBA Communications, Seattle Genetics, and Roku. RingCentral is up more than 8%, on pace for its best day since October and SBA Communications is up more than 7% on pace for its best day since January 2016. —Francolla
9:52 am: China stocks rising despite coronavirus concerns
The iShares China Large-Cap ETF (FXI) is up 1.7%, on pace for its 6th positive day in 7 and on pace for its best day since Feb 4th when the ETF gained 2.69%. Month-to-date, FXI is up 6.2%. Top holdings in the fund include Tencent and China Construction Bank. —Francolla
9:42 am: Stocks well off their highs ahead of Powell testimony
The S&P 500 and the Nasdaq Composite set new records shortly after the open but they have since pared those gains. The Dow was last up about 65 points. One notable laggard dragging down the market was Facebook, which was down more than 2%. Powell Q&A before Congress starts at 10 a.m. ET. -Melloy
9:30 am: Stocks open higher
The Dow Jones Industrial Average opened up 0.42% or more than 120 points on Tuesday. The S&P 500 rose 0.43% or 14 points and the Nasdaq Composite rose 50 points at the open. Apple and Amazon are among the biggest contributors to the gains at the open. —Fitzgerald
9:27 am: Here are Tuesday's biggest analyst calls of the day
8:55 am: European stocks are on fire
The Stoxx 600, the broadest measure of European stocks, climbed 0.8% to a record high on Tuesday. The index is also up more than 4% this month, outperforming the S&P 500, which is up 3.9% in February. European stocks have been on fire this year as ECB President Christine Lagarde lobbies for more fiscal stimulus in the region, particularly from Germany. —Imbert, Pisani
8:43 am: Ray Dalio says coronavirus impact on market is probably exaggerated
Bridgewater founder and billionaire investor Ray Dalio said Tuesday that the impact from the coronavirus may be overdone. The virus, which has now killed more than 1,000 people, "probably had a bit of an exaggerated effect on the pricing of assets," Dalio told attendees at the annual Milken Conference in Abu Dhabi on Tuesday. "Because of the temporary nature of that, I would expect more of a rebound. It most likely will be something that in another year or two will be well beyond what everyone will be talking about," he added. —Stevens
8:40 am: Coronavirus death toll tops 1,000
As of Monday night, the Chinese government said there were 2,478 new confirmed cases of coronavirus and 108 additional deaths, bringing the total numbers to 42,638 cases and 1,016 deaths in the country. "With 99% of cases in China, this remains very much an emergency for that country, but one that holds a very grave threat for the rest of the world," WHO chief Tedros Adhanom Ghebreyesus said during opening remarks of a meeting between more than 400 researchers and national authorities, Reuters reported Tuesday. The virus has spread to at least 25 other nations. — Stevens
8:32 am: Futures largely unchanged following release of Powell's remarks
Federal Reserve Chairman Jerome Powell's remarks before Congress were released at 8:30 am and we are seeing a muted reaction so far. If anything, futures have come off slightly with Dow futures up only 90 points after being up more than 100 points before the testimony was released. Powell, in his semiannual testimony before Congress, will say that the U.S. economy appears "resilient," that the Fed is closely monitoring the coronavirus, and that the "current stance of monetary policy will likely remain appropriate," according to remarks. Traders will now focus on the Q&A portion of his testimony, which begins at 10 a.m. ET. -Melloy
8:19 am: Sprint, T-Mobile deal approved by judge
A U.S. District judge ruled in favor of the proposed merger between Sprint and T-Mobile. Sprint's stock soared more than 60% in extended trading, while T-Mobile shares gained 8.8%. —Pound
8:12 am: Under Armour drops 13%
Shares of Under Armour slid 13% during Tuesday's premarket trading after the company said its 2020 revenue would be hurt by the coronavirus outbreak. China is one of the athletic retailer's fastest growing markets, so weakness in the region could hurt top-line growth. The comments came as the company reported fourth quarter results. Earnings per share came in at 10 cents which was in-line with estimates, according to Refinitiv, but the company's $1.441 billion in revenue fell short of expectations. —Stevens
8:09 am: Powell to talk economy, policy before House panel
Federal Reserve Chairman Jerome Powell appears Tuesday before the House Financial Services Committee as part of his mandated semiannual testimony before Congress. On tap will be comments about general economic conditions, the state of monetary policy and the Fed's view on international developments including the coronavirus. Powell then will take questions from committee members. It's off to the Senate tomorrow for the central bank chief. —Cox
8:05 am: Dow set to rise more than 100 points as coronavirus fears dim
https://www.cnbc.com/2020/02/11/stock-market-today-live.html
2020-02-11 13:05:00Z
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