Stock futures sink deep into the red as oil prices plummet and coronavirus fears spread

[left-of-center2012]

Source: Washington Post

Stock futures sank deep into the red Sunday, with the Dow expected to open as much as 1,000 points down Monday morning, as a new oil war sparked by the coronavirus outbreak sent prices plummeting.

The price of West Texas Intermediate crude, largely used in the United States, fell from about $41 to $32 a barrel Sunday night, a low not seen in four years. By Sunday evening, it had fallen an additional 25 percent. While the tumble should lower prices at the pump for consumers, it is terrible news for stock markets, as well as oil companies and their massive workforces, which could see hard times ahead.

Asian markets plunged on the news, with Japanese stocks falling 3 percent when they opened Sunday night. Australia’s market declined 5 percent at the open.

?$20 (a barrel) oil in 2020 is coming,” Ali Khedery, a former U.S. official in Iraq and onetime Middle East expert with Exxon, wrote on Twitter.

Read more: https://www.washingtonpost.com/business/2020/03/08/saudi-arabia-flooding-market-with-oil-prompting-predictions-further-decline-monday/

[machoneman]

1. Ouch!

[Dopers_Greed]

2. I'd love to be a fly on the wall in Mar-a-Loco

I bet the orange turd is freaking out now

[BadGimp]

3. This week ... is going to be a rough one for the markets.

[BidenBacker]

4. Thank God

I got my elderly father into some gold stock late last week. Maybe he can make a few bucks off those while he's losing his ass on his other equities.

Republicans: "Yeah, we all know that Trump is an uncouth asshole and a total imbecile...but our 401Ks are up!"

Hey Goppers, how's that workin' out for ya???

https://money.cnn.com/data/premarket/index.html

Down 1255 now...almost 5%. No doubt all Biden's fault.

[left-of-center2012]

5. "No doubt all Biden's fault"

I'm betting Donnie blames Obama

[BidenBacker]

7. We know one thing for sure

Fuhrer Drumpf will blame somebody else and take zero responsibility for anything.

This is some real serious shit...our deficit is already at around $1.5 trillion thanks to the GOP's reckless spending so a TARP-like program will only make it much worse. The Fed can't cut rates much more unless they start giving money away. Besides, a rate cut doesn't do shit when coronavirus will cause a supply shock and not a demand issue.

We don't have many levers left to move and dials to turn. Plus we got Munchkin and Krudlow as our economic "experts"...these guys have no clue except "keep buying on the dips!"

We're effing doomed.

[James48]

6. Dow Stock Futures trading suspended

I haven’t seen trading suspended since the days of the 2008 crash.

Here we go!

[BidenBacker]

8. Isn't there a halt

at 5% down?

[maddogesq]

34. Circuit breakers have kick in.

https://www.cnbc.com/2020/03/09/sp-500-futures-are-frozen-after-tanking-5percent-heres-what-happens-when-circuit-breakers-kick-in.html

[SiliconValley_Dem]

29. After hours futures trading different than normal trading breaker switches

Last time after hours trading went down was night of election...but stocks later went up.

The current environment does not support a similar rebound. I see a multi day slide

[ashredux]

9. I shorted the S&P Friday.....

Dumb luck

[ashredux]

10. :)

[BidenBacker]

11. Dumb RICH luck!

I bought a bunch of S&P put options back in 2006 when I was convinced that the market was gonna plunge. If my timing had only been a little better think I woulda cleared around $300K on an 8 or 10 grand bet. Sometimes it sucks to be too far ahead of the curve!

I always thought Trump would crash the markets...I'm surprised it's held up as long as it has.

Congrats on your trade...you done real good and we know who's buying the rounds tomorrow on DU.

[ashredux]

12. I use ETFs

[BidenBacker]

14. So if you have ETFs

then you don't have any clock ticking like I did with expiration dates on options.

You gonna do good tomorrow from the looks of things...if it were me I'd sell a little back and let the rest ride because it ain't looking good for the long term.

Best of luck whatever you do.

[left-of-center2012]

13. Oil Drops 31% in Worst Loss Since Gulf War

Oil markets crashed more than 30% after the disintegration of the OPEC+ alliance triggered an all-out price war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences.

Brent futures suffered the second-largest decline on record in the opening seconds of trading in Asia, behind only the plunge during the Gulf War in 1991. As the global oil benchmark plummeted to as low as $31.02 a barrel, Goldman Sachs Group Inc. warned prices could drop to near $20 a barrel.

Hammered by withering demand due to the coronavirus, the oil market is sinking deeper into chaos on the prospect of a supply free-for-all. Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and signaled to buyers it would ramp up output -- an unambiguous declaration of intent to flood the market with crude. Russia said its companies were free to pump as much as they could.

The cataclysmic collapse will resonate through the energy industry, from giants like Exxon Mobil Corp. to smaller shale drillers in West Texas. It will hit the budgets of oil-dependent nations from Iraq to Nigeria and could also reshape global politics, eroding the influence of countries like Saudi Arabia. The fight against climate change may suffer a setback as fossil fuels become more competitive versus renewable energy.

https://www.bloomberg.com/news/articles/2020-03-08/oil-in-freefall-after-saudis-slash-prices-in-all-out-crude-war?srnd=premium

[BidenBacker]

15. No problem

Yet another GOP tax cut for the rich and corporations should clear all that right up.

[BidenBacker]

16. Circuitbreakers Anyone?

https://www.nasdaq.com/articles/stock-futures-fell-fast-enough-sunday-to-trigger-a-trading-halt-2020-03-08

[GETPLANING]

17. Dow futures down 1200 and still declining

Boy, was I wrong

[BidenBacker]

19. Look at this shit

https://www.cnbc.com/pre-markets/

DJIA futures down so much they turned green again...LOL.

Either CNBC needs to work on their software a little or Krudlow hacked into their website and is trying to prop it up.

Hey, Larry...just keep buying on the dips, bro!

[IronLionZion]

18. When oil prices got low around 2014-2016

Freepers claimed Obama was killing oil jobs in states like North Dakota and Montana out of spite. Trump openly campaigned on creating lots of jobs in fracking and shale since Hillary hates American workers so much.

Interesting to see who they blame this on since it's obviously Saudi Arabia but Trump won't be able to admit it.

They are now moving to flood the market with hundreds of thousands of barrels of additional oil per day and offering steep discounts to refineries around the world.

Analysts fear the move is the beginning of a price war between the Saudis and Russia — which will squeeze American shale oil producers as prices are heading sharply downward.

The dealmaker in chief is winning so bigly at everything these days. Maybe this is Joe Biden's fault this time.

[BidenBacker]

20. The good news is

that airlines will save a bundle on jet fuel with oil tanking so bad.

Of course, the bad news is that everybody is now afraid to get on their planes these days.

[IronLionZion]

21. Some airlines will buy up extra jet fuel when it's cheap

and store it for future use. Southwest has done this before.

[BidenBacker]

22. One good thing about oil plunging 30% today...

Putin is losing his ass.

About the only 2 things that Russia produces is oil and pro-Trump propaganda.

[BidenBacker]

23. Gold topped $1700 as bond yields plummet

https://www.cnbc.com/2020/03/08/dow-futures-drop-700-points-as-all-out-oil-price-war-adds-to-coronavirus-stress.html

Will probably be over $2000 an ounce by the time we finally get the Idiot-in-Chief outta there.

I figure every 1000 point drop in the Dow is another 1 million votes for Biden come November. Maybe more.

[BidenBacker]

24. Check out the look on Vlad's face...

https://www.cnbc.com/2020/03/08/putin-sparks-an-oil-price-war-and-us-companies-may-be-the-victims.html

Need one of them thought bubbles above it...

"Why in the world did I ever get that fucking moron Trump elected? Even Hillary woulda been better than that assclown."

[GusBob]

26. He came to power on oil

Live by the grease die by it

[BidenBacker]

27. Yep

More bad news for Donnie...after we toss his sorry ass outta office he'll probably go bankrupt again without all that Russian oligarch oil money to launder.

And yet more bad news...

https://www.financial-planning.com/opinion/stock-market-performance-after-3-years-donald-trump-and-barack-obama

And this is from late January when the market was near its all-time high. That orange line is quite a bit lower now than it was then.

That orange line oughta give orange face a big wedgie...he hates losing to Obama.

[gab13by13]

32. I wonder if the remaining Koch brother

will contribute to Trump's reelection? Probably yes.

[ribrepin]

25. We took our 401K out about a year ago and put it into a CD at our credit Union

that is used to finance loans. The market is now lower than when we pulled it out. We earned a little over $2000.00 for about 10 months. I guess we could be affected if the economy really caters. Really happy with our decision. We didn't trust shitgoblin. We are retired and aren't part of elite so we wouldn't know when to run.

[dalton99a]

28. Kick

[NBachers]

30. Looks like the Democrats are going to inherit the usual Republican shitstorm devastation, again.

Then, with the Democrats in power the puke fascists can blame it all on the Democrats, again.

[BidenBacker]

31. Many folks have no idea how right you are

When I was participating a lot in WaPo's political forums back in the 2000s I came across a blog called Perrspectives. I'm not much into blogs but I liked this guy's. He wrote a great article back in the middle of the 2008-2009 financial crisis that always stuck with me and which you might enjoy reading...

Democrats. Saving American Capitalism Since 1933.

http://www.perrspectives.com/blog/archives/001448.htm

Like you, I have a gut feeling it's starting to happen all over again. Democrats always get stuck with having to clean up Republican shit...while all Goppers do is crap all over the place. Hope Joe brings some Latex gloves and a big mop to his Inauguration because he may very well need them.

How's that old saying go? "If you wanna live like a Republican then vote Democratic."

[beachbumbob]

33. built in circuit breaker comes into play at 5% down, so today will most certainly see that

in action. Another feature to the investor class from taking a huge hit at once. Tomorrow would most likely be a repeat.