A trader works on the floor of the New York Stock Exchange in New York, the United States, March 18, 2020.
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8:38 am: Oil reverses losses, jumps 4% after Fed promises aggressive asset purchases to support markets
Oil prices reversed losses on Monday, rising as much as 4% after the Federal Reserve pledged aggressive asset purchases to support markets. The move higher comes after U.S. West Texas Intermediate crude posted its worst week since 1991. Oil demand has taken a hit as the coronavirus outbreak has halted business activity worldwide. Investors are hoping that the Fed's latest announcement will put a floor on oil's demand destruction. WTI crude futures have been cut in half this month. – Stevens
8:25 am: Coca-Cola shares boosted by upgrade
Shares of Coca-Cola gained 3.7% in premarket trading after the beverage company was upgraded from neutral to overweight by JPMorgan. The bank did cut its price target on the stock from $60 to $44 per share, about 15% above where trading closed on Friday. The bank said in a note that it expects Coca-Cola's sales to decline by 7.8% in the second quarter but "valuation ignores potential comeback." — Pound
8:19 am: Stock futures go positive on Fed action
Stocks reversed course after the Federal Reserve's announcement Monday. The Dow Jones Industrial Average futures surged 550 points. The S&P 500 and the Nasdaq also pointed to gains at the open. —Fitzgerald
8:10 am: Fed announces limitless asset purchases
The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis. Among the initiatives is a commitment to continue its asset purchasing program "in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy." Others include a $300 billion lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis. The Fed also said it will purchase commercial mortgage-backed securities as part of an expansion in its asset purchases, known in the market as quantitative easing. Stock futures cut their losses after the Fed's announcement.– Cox
8:00 am: Coronavirus stimulus bill fails in key Senate procedural vote
A funding package to combat the economic impact of coronavirus did not get enough votes in a key Senate procedural vote Sunday evening, after Democratic leaders warned that the bill did too much to bail out companies and not enough to help workers. The final vote tally was 47-47, well short of the 60 votes needed to advance the bill. Republicans hold a 53-47 majority in the chamber, although several GOP senators were not present to vote due to coronavirus isolation.
House Speaker Nancy Pelosi said the Democrats would be introducing their own bill. President Trump expressed optimism that lawmakers would eventually reach a deal.
Aperture Investors founder and CEO Peter Kraus said on CNBC's "Squawk Box" on Monday that he recalls the Senate didn't pass the first TARP bill during the financial crisis, and the market fell. "There are going to be 2 million to 3 million Americans out of work. I think there are both Republicans and Democrats in that crowd. We need to pass a bill," said Kraus. – Fitzgerald
7:59 am: Volatility Index rises as week begins
The Cboe Volatility Index rose about 6 points on Monday morning to break back above 70. The index, which measures the volatility implied by S&P 500 options trading, set record highs last week but closed on Friday at 66.04. — Pound
7:57 am: 3M shares rise after company says it's doubled mask production
Shares of industrial conglomerate 3M rose in premarket trading after its chief executive said the company has doubled global production of N95 respirators to about 100 million a month. CEO Mike Roman said Sunday that the company expects 3M to nearly double its capacity again within the next 12 months and is coordinating with the U.S. government to explore other manufacturing, including hand sanitizers and disinfectants. "As a global company, we also manufacture respirators in Europe, Asia and Latin America, and our products are being similarly deployed to support the COVID-19 response in those respective regions," said Roman. — Franck
7:54 am: Boeing rises after Goldman's bold upgrade
Shares of Boeing climbed 2.5% in premarket trading on Monday after Goldman Sachs upgraded the U.S. plane maker to buy from neutral, saying the company has enough cash to recover and demand for air travel will return to normal once the coronavirus crisis is over.
"We think Boeing will remain a going concern," Goldman analyst Noah Poponak said in a note on Sunday. "We think travel by flight will be as popular as ever once COVID-19 is resolved. We therefore think shares of BA should be procured at the current price ... Substantial fear priced in, while long-term secular growth intact."
Boeing's stock plunged 70% in 2020 so far, making it the worst performing S&P 500 stock over a $50 billion in market capitalization, Goldman noted. Boeing said on Friday it will cancel CEO pay, suspend its dividend and extend a pause on share buybacks amid the pandemic. It is pursuing $60 billion in U.S. government aid for the aerospace industry, including loan guarantees. — Li
7:45 am: Oil extends declines after worst week since 1991
Oil prices moved lower on Monday, extending recent losses that saw U.S. West Texas Intermediate crude post its worst week since 1991. On Monday, WTI shed 1.86% to trade at $22.21 per barrel, while international benchmark Brent crude fell 6% to trade at $25.36 per barrel. In a volatile day of trading, WTI first dropped 6%, and then recovered those losses to turn positive, before once again moving lower.
Prices have dropped as the coronavirus outbreak has slowed worldwide travel and business activity, just as powerhouse producers Saudi Arabia and Russia prepare to ramp up production. WTI crude futures have been cut in half this month. The rapid decline in crude prices is wreaking havoc on the financial markets, forcing investors to sell other assets such as Treasuries or equities indiscriminately to cover the losses in their energy positions. — Stevens
7:10 am: Stocks set to fall, Dow futures down 500
Markets were set to decline at the open on Monday as investors wait on an economic stimulus and rescue plan from the U.S. government to combat damage from the coronavirus. A fiscal stimulus bill failed a key procedural Senate vote Sunday, sending equities downward. The Dow Jones Industrial Average futures dropped more than 500 points. S&P 500 futures were off by nearly 3%. Nasdaq 100 futures declined by 2.6%. Futures were well off their worst levels of the overnight session, where they hit their "limit down" levels, falling 5%.
Last week, stocks suffered their biggest one-week decline since the financial crisis in 2008, with the S&P 500 dropping more than 13%. Those losses put the broad market average more than 32% below its record set on Feb. 19. —Fitzgerald
— with reporting from CNBC's Thomas Franck, Jesse Pound and Jeff Cox.
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https://www.cnbc.com/2020/03/23/stock-market-live-today.html
2020-03-23 12:40:27Z
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