Stock market live updates: Futures point to 5% drop at the open, oil tanks 20%, 10-year hits record low - CNBC

Traders work on the floor of the New York Stock Exchange (NYSE) on March 03, 2020 in New York City.

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9:15 am: 'Circuit breaker' may stall or halt trading in market plunge

A volatile market may trip key circuit breakers that would limit or halt trading today. According to the New York Stock Exchange, if the S&P 500 drops 7%, trading will pause for 15 minutes. If it drops 13% on or before 3:25 p.m. ET, trading will pause for 15 minutes. And if it plunges 20%, trading will halt for the rest of the day. These triggers, designed to maintain orderly trading after the May 2010 flash crash, have never been triggered before. But CME-traded stock index futures sank 5% Sunday evening, halting trading. - Lewis

8:42 am: Here's where we stand with under an hour before the open

Futures on the three main U.S. indexes hit the limit down levels, falling about 4.8%, but premarket trading of several ETFs indicate that stocks could drop further once trading begins. The SPDR S&P 500 ETF is down 7.2%, with the SPRD Dow ETF is 6.9%. Oil has rebounded slightly off its lows, with the WTI April futures contract trading at $32.17 a barrel, a 22% decline. — Pound

8:31 am: Boot Barn down double digits

Western and workwear retailer Boot Barn is down more than 11% in premarket after a downgrade from JPMorgan and amid rising concern about the oil industry. Roughly a third of the company's stores are in major oil and gas producing regions, with 25% in Texas alone. JPMorgan downgraded the stock to neutral from overweight, lowering its price target on the stock to $32 per share from $47. Premarket trading of the stock is light, however, with fewer than 2,000 shares changing hands so far. — Pound, Reagan

8:24 am: US 10-year yield hits new record of 0.318% amid flights to bonds

The yield on the U.S. 10-year Treasury briefly touched an all-time low of 0.318% in overnight trading, adding another 30 basis points to an unprecedented fall in the key interest rate. The benchmark yield resumed its historic slide on Monday as investors continued to punish risk assets like stocks in favor of the safety of bonds between an all-out oil price war and contagion fears surrounding the coronavirus.

The 10-year yield, in particular, holds outsized importance in the U.S. economy for its use as a benchmark for mortgage rates and auto loans. That rate was above 1.5% as recently as mid-February. — Franck

8:21 am: Energy and gig economy stocks plunging in premarket trading

The shares of some major names are down double digits in premarket trading. Oil giants Exxon and Chevron both fell more than 15%. Uber and Lyft are both down about 12% amid concern that demand will fall due to the coronavirus. Tesla, which was trading at more than $900 per share less than a month ago, is down 14% this morning to about $605 per share. Boeing fell more than 9% after the Wall Street Journal reported that regulators will order the company to make changes to electrical wiring in the grounded 737 Max. — Pound

7:59 am: El-Erian: Stocks could end up down 20%-30% when the bottom is finally reached

Economist Mohamed El-Erian told CNBC's "Squawk Box" on Monday that the U.S. stock market may drop as much as 30% from last month's record highs before finding a bottom. "This is going to be treacherous for a while," the chief economic advisor at Allianz said. "I would advise most retail investors to stay on the sidelines, not panic. There will be opportunities but they're not now," he said. The Dow, as of Friday's close, was 12.5% off last month's all-time highs. The Dow was tracking for an over 5% drop at Monday's open on Wall Street. - Belvedere

7:53 am: Bank stocks crushed by one-two punch of dropping yields and crashing oil

Bank stocks plunged in early trading with Bank of America dropping 11% and JPMorgan Chase falling 9%. The banks now have two problems. First, plunging yields are ruining their lending margins. And now oil prices are crashing, which could cause many energy companies to default on their obligations to banks. - Melloy

7:44 am: Cramer: Collapse of oil prices and bond yields is worse than 'the chaos of 2007-2009'

CNBC's Jim Cramer said early Monday that the collapse in oil prices and bond yields put the stock market in "uncharted waters" as Dow futures were pointing to a 1,300-point nosedive at Wall Street's open. As crude futures were plunging Sunday night after OPEC's production cut deal failed and the 10-year Treasury yield was making shocking new lows in a global flight to the perceived safety of bonds, Cramer tweeted that these moves are "signalling an imminent recession." - Belvedere

7:23 am: Gold hits seven-year high

Amid a massive sell-off in stock futures, oil prices tanking and bond yields plunging to record lows, gold prices hit a more than seven-year high on Monday. In a volatile session, spot gold touched its highest since December 2012 at $1,702.56, as concerns over the coronavirus outbreak and its economic impact drove investors to safe-haven assets. Profit-taking later unwound much of the metal's rise, knocking the precious metal back to stand 0.2% higher at $1,676.68 per ounce. - Fitzgerald

7:12 am: Over $26 billion wiped off cryptocurrency market in 24 hours

Cryptocurrency markets plunged following a plummet in oil prices and a massive sell-off in stock futures. The market capitalization or entire value of cryptocurrencies was down $26.43 billion from a day earlier, according to data from Coinmarketcap.com, and the sell-off worsened as the day went on. Bitcoin, the biggest cryptocurrency by value, fell more than 10% in 24 hours around the same time. - Stevens

7 am: Bank of America says stocks have not been this attractive since the 1950s

"Stocks have not been this attractive vs. bonds since the 1950s" Bank of America's Savita Subramanian said in an early morning note to clients. "The prior three peaks were followed by the S&P 500 outperforming the 10-yr Treasury by a remarkable 31ppt on average over the subsequent 12 months. And since 1951 when the ratio was this high, stocks have returned 19x more than the Treasury," she said. - Bloom

6:43 am: Market is now expecting the Fed to cut short-term rates to zero this month

Less than a week after it implemented an emergency rate cut, markets now expect the Federal Reserve to soon take its benchmark rate back to zero, where it was during the financial crisis. The fed funds futures market is assigning a 73.5% probability to a 100 basis point cut in March, according to the CME's FedWatch tracker. There was a 0% probability of that happening as of Friday, but the weekend's market events changed that. The Federal Open Market Committee meets March 17-18, but the central bank could act before then. – Cox

5:45 am: Major averages set to crater 5% at the open, Dow on track for 1,300-point drop

Monday is shaping up to be a bloodbath on Wall Street. U.S. stock futures are indicating a 5% drop for the major averages at the open, with the Dow set to decline more than 1,300 points.

The sharp move lower comes as investors brace for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety.

The sharp declines in the futures market signaled more turbulence ahead after a roller-coaster week that saw the S&P 500 swing up or down more than 2.5% for four days straight. - Stevens

— CNBC's Maggie Fitzgerald, Matt Belvedere, Jess Pound, Thomas Franck, Al Lewis and John Melloy contributed reporting.

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https://www.cnbc.com/2020/03/09/stock-market-today-live.html

2020-03-09 13:17:01Z
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