Stocks drop on concerns over growing coronavirus cases

[Yo_Mama_Been_Loggin]

Stocks fell sharply Wednesday as traders grew worried about the increasing number of newly confirmed coronavirus cases, which raised concern about the economic reopening and recovery.

The Dow was down more than 700 points, or 2.8%, after sinking more than 800 points. The S&P 500 traded 2.7% lower, while the Nasdaq slid 2.3%. The tech-heavy Nasdaq was headed for its first daily decline in nine sessions.

The major averages hit their lows of the day after Florida said its confirmed cases jumped by 5,508 on Tuesday, a record, and now total 109,014. The state also said its positivity rate rose to 15.91% from 10.82%. Meanwhile, New York, New Jersey and Connecticut ordered visitors to quarantine.

“Markets pause with all eyes on the virus and the reopening heading into the summer months,” said Gregory Faranello, the head of U.S. rates trading at AmeriVet Securities, in a note. The health side is back front and center as both monetary and fiscal liquidity has been factored in short-term. We have entered a new phase of this crisis.”

https://www.msn.com/en-us/money/markets/stocks-drop-on-concerns-over-growing-coronavirus-cases/ar-BB15STQX?li=BBnbfcN&ocid=DELLDHP

[lagomorph777]

1. More bad news for Pres. Turd.

[stillcool]

2. Concerns? Throw some money at it.

Just like Susan Collins.

[Wellstone ruled]

3. Wall Street has awaken to

the threat of States as well as Eourpe not allowing certain travelers to enter. And if so,a 14 day guarantee. Plus,Wall Street now believes the odds of a full out Democratic Congress is now in play and they are going to move accordingly.

[Iliyah]

4. The Stock Market doesn't care about Main Street that's for sure . .

[Wellstone ruled]

5. Sad to say,

there isn't any Main Street anymore.

It is all Walmart,Target,and Kroger and Albertson's. With the exception of Walmart,all of the others are owned by Hedge Funds and operate on leverage and inflationary Value.

[ProfessorGAC]

7. Good Post!

You're spot on.
But, with money so cheap it actually does work, both for the markets & the macroeconomy.
However, if inflation starts to roil (it's not, right now) the fed has tied it's own hands.
They can't raise interest now, because all that leverage and RLOC money increases debt burden to those companies.
Their cash positions fall, profit % falls, and analyst trigger sell alerts.
Fed raises rates, the equity markets tank.
Basically they've removed their only tool in the box.

[Wellstone ruled]

9. Spent five decades associated

with the Wholesale,and Retail side of our Grocery Industry. If as Wall Street expects,the likes of Kroger and Albertson will be in Bankruptcy Court next year if forecast consumer spending continues as weak as it is today.

BTW,somewhat familiar with the Albertson coming nightmare. Cerbus Capital bought this sucker and its billions of dollars of debt,counting on inflation and cheap money to make it a viable target for a IPO down the road. Well,the key factor is in this Scenario was pass through of product inflation,costs of labor and distribution as well as a 1-2% wage inflation by their Customers. Technically,they are upside down at this point,but,the credit market is flush with trillions of cash looking for some place to put it.

My guess is Kroger is sitting in the same shape.

[empedocles]

10. Stock Market 'cares' about stripping Main Street

'Commitments of Traders Reports' details various groups:

Trend
Commercial
Large Speculators
Small Traders
Open Interest
Net Positions - Commercials
26-weeks Position Extremes Commercial
COT Index
Long

[Large Speculators, yes there is such an index. Large Speculators, hedge funds, other big funds - committed to beating other investment groups, daily, up or down often in the same day. They don't buy the 'news' like some some small traders. More likely to 'buy the rumor and sell the news'. Often trade on technical signals].

[uponit7771]

6. Nope, feds announced investigation into Apple and index's are bubbled in tech stocks now so

... when Apple goes down 1% whole indexes go down 3%

its stupid but they don't have anything else right now

[gratuitous]

8. 42 million unemployed, 130,000 dead

This might not bode well for the near future.