ECON FUNG RED ALERT: DOW AND NAS PLUNGE - Friday 2/28 - DOW Hits -1,000 In Early Morning Trading

Momof5

Momof5

Senior Member
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Dow Jones Jumps After Coronavirus Triggers Stock Market Correction; Disney, Salesforce, Virgin Galactic, Insulet, TJX Move On News

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The Dow Jones Industrial Average rose sharply Wednesday morning, along with the S&P 500 index and Nasdaq composite, as bulls try to mount a rebound. But a stock market correction has taken hold after several days of heavy losses. Meanwhile, several notable stocks broke or tested key levels on news.
Disney (DIS) CEO Bob Iger announced late Tuesday that he'll step down immediately. Salesforce.com (CRM), Virgin Galactic (SPCE), Insulet (PODD), Toll Bros. (TOL) and Planet Fitness (PLNT) reported earnings after the close.
Disney stock fell modestly to a 10-month low. Salesforce stock, Virgin Galactic stock, Insulet stock, Toll Bros. stock and Planet Fitness stock all fell. Several signaled declines through buy points or key support.
In other news, TJX Cos. (TJX) reported strong earnings. Tesla (TSLA) and Panasonic reportedly ended their solar cell production joint venture in Buffalo, with signs of a broader rupture possible. TJX stock jumped while Tesla stock fell modestly.
Dow Jones Today
The Dow Jones rose 0.7%, the S&P 500 index 0.7% and the Nasdaq composite 1%. Those are off their best levels and follows a volatile overnight session.
Join IBD experts as they discuss the stock market correction on IBD Live. Take a free trial!
Coronavirus News
Coronavirus cases have topped 81,000, with deaths above 2,700. While the vast majority of Covid-19 cases and deaths are in China, new cases are slowing in that country, with few new infections outside of the Hubei province epicenter. China confirmed 406 new cases, with 401 in Hubei.
However, coronavirus cases are expanding in South Korea, Japan, Italy and the Middle East. Korea's virus cases rose to 1,261, with a U.S. soldier stationed in the country testing positive. Italy has 374 virus cases. Brazil confirmed a coronavirus case, the first Covid-19 infection in Latin America. All that raises fears of a global pandemic that will chill global economic growth and supply chains.
A top CDC official said Tuesday that the coronavirus likely will become a global pandemic.
Coronavirus Stock Market Correction
The current stock market rally has suffered four straight down days, with major losses in the last two sessions. This kind of rapid, heavy selling through moving averages is a clear vertical violation. IBD now labels the current market as a stock market correction.
On Tuesday, the Dow Jones Industrial Average fell 3.15%, the S&P 500 index 3% and the Nasdaq composite 2.8%. The Dow Jones plunged below its 200-day line, a day after the major indexes undercut their 50-day lines. The S&P 500 index and Nasdaq composite undercut their late January lows, during the first wave of coronavirus selling.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) slid 3%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 2.8%. The VanEck Vectors Semiconductor ETF (SMH) lost 2.9%.
The stock market rally already was under pressure as of Monday's tumble. After Tuesday, it's a stock market correction. After several days of heavy selling, the Dow Jones today and other major indexes could bounce back, but one or two good days doesn't make for a confirmed stock market rally.
With Tuesday's continued coronavirus market sell-off, it's crucial to read The Big Picture to understand the current stock market direction.
Disney CEO Bob Iger Steps Down
Bob Iger will step down immediately, Disney announced late Tuesday. Last year, Iger said that he planned to step down from the Dow Jones media giant in 2021. Bob Chapek, chairman of Disney Parks, Experiences and Products, takes over as CEO. Iger will remain as chairman through 2021 and handle Disney's creative efforts.
Disney stock fell 1.1% in morning trade, as investors reacted to the departure of a long-serving, well-regarded CEO. Disney stock briefly hit its lowest level since April 2019, when it gapped up on Disney+ plans. Disney stock fell 3.6% on Tuesday after tumbling 4.3% on Monday, but it had been trending lower since late November amid rising expenses for Disney+.

Salesforce Earnings Top, Co-CEO Exits
Salesforce earnings were 66 cents a share, down 6% vs. a year earlier. Revenue grew 35% to $4.85 billion, including its Tableau takeover. Wall Street expected Salesforce earnings of 56 cents on sales of $4.75 billion.
The software giant guided in line.
Meanwhile, co-CEO Keith Block will step down. Block was seen as a successor to Salesforce founder and co-CEO Marc Benioff.
Salesforce stock fell 2% early Wednesday. CRM stock is below its 50-day line, but holding above a 167.66 buy point. Salesforce stock fell 2.5% on Tuesday.

Virgin Galactic Earnings
Virgin Galactic reported continued losses as revenue came in at $528,000, less than expected. The publicly traded space company said it would start taking new reservations for space flights with a $1,000 deposit.
SPCE stock retreated 7.3%. But on a chart, SPCE stock still looks fine, holding relatively steady after going almost vertical for much of 2020.

Insulet Earnings
Insulet earnings fell 50% to 8 cents a share as revenue rose 27% to $209.4 million. Analysts expected Insulet earnings of 9 cents on sales of $197 million.
Insulet stock fell 5.5% to 185.82. PODD stock has undercut a 187.35 flat-base buy point and its 50-day line. Insulet stock fell 5.1% on Tuesday, as rival insulin pump maker Tandem Diabetes (TNDM) plunged 10% on its mixed results.

Planet Fitness Earnings
Planet Fitness earnings rose 29% to 44 cents a share. Revenue grew 10% to $191.5 million. Wall Street expected Planet Fitness earnings of 41 cents and revenue of $189 million. But the low-cost gym operator gave cautious guidance.
Planet Fitness stock fell 5.2% early Wednesday, below an 81 buy point and its 50-day. On Tuesday, Planet Fitness stock sank 3.6% to 75.25 after dropping 3.75% on Monday.

Toll Brothers Earnings
Toll Brothers earnings fell 46% to 41 cents as revenue fell 2%, both missing views. Toll Brothers stock plunged 12% in morning trade, below its 50-day line and 41.80 buy point. Toll Brothers stock had tumbled 5.7% on Tuesday.

Please follow Ed Carson on Twitter via @IBD_ECarson for stock market updates and more.
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Zagdid

Zagdid

Veteran Member
expecting a robust year to offset new fuel costs, some shippers might not survive ............

www.reuters.com

Tanker rates plunge over 80% as virus torpedoes shipping

Tanker charter rates have plunged more than 80% as the coronavirus outbreak slams the brakes on major economies, costing the sector hundreds of millions of dollars in lost business, a senior shipping industry official said.
www.reuters.com www.reuters.com

Tanker rates plunge over 80% as virus torpedoes shipping
Michael Shields FEBRUARY 26, 2020 / 9:10 AM / UPDATED AN HOUR AGO

GENEVA, Feb 26 (Reuters) - Tanker charter rates have plunged more than 80% as the coronavirus outbreak slams the brakes on major economies, costing the sector hundreds of millions of dollars in lost business, a senior shipping industry official said.

While some of the revenue is gone for good, a trade rebound could put the sector back into calmer waters later this year, International Chamber of Shipping (ICS) Secretary General Guy Platten told Reuters in an interview on Wednesday.

The ICS is the main trade association for merchant shipowners and operators, representing more than 80% of the world’s merchant fleet.

Platten called the outbreak of the COVID-19 virus “hugely disruptive” for the shipping sector, triggering a massive decrease of raw material imports in economic powerhouse China because factories had stopped and are only starting to recover.

“On the finished goods side of it you’ve got empty containers for example in China and you’ve got a shortage of containers in the (United) States because the manufactured goods are not getting out of China and being transported round the world. It’s affecting all the supply chain throughout the shipping industry,” he said.

It was hard to estimate the overall cost to the sector, he said.

“All we know is that there has been an absolute plunge in rates for various classes of ship ... We know that container lines are doing empty sailings. It would be hundreds of hundreds of millions of dollars (that) would be in jeopardy now,” he said.

“In the tanker sector we know that rates have fallen by over 80% just in that one area alone,” Platten added.

Shipping giant Maersk warned last week the virus outbreak would hit its earnings this year.

Platten was in Geneva to meet World Health Organization officials leading the international response to the outbreak that has infected around 80,000 people and killed more than 2,700, mostly in China.

He said cruise lines were acting responsibly, citing their medical teams on board and awareness of how to handle infectious diseases.

Separately, the German shipowners’ association VDR told its annual news conference in Hamburg that terminal operations in Chinese ports were not going smoothly because truck drivers and port workers were missing.

Container ships’ round trips through Chinese ports were being increasingly cancelled because of low load levels. Shipowners have asked staff to stay on board and wear face masks, VDR said.

Crews were not being swapped in China, and ships were not receiving and loading food during Chinese port stays, it added.
 
Red Baron

Red Baron

Paleo-Conservative
_______________
CaryC said:
Ok what happened????

Dow was up around 400, and now it just dropped to 50
Click to expand...

Likely the bargain hunters were out buying stocks early this morning.

The Euro markets recently closed down and I would guess that close spooked our markets?
 
colonel holman

colonel holman

Veteran Member
If you are into the gamble, stocks will slide hard on the virus effects on economic activity, plus even more when Berie is nominated... then off like a rocket again when Trump reelected and Bernie’s threat is dissipated.
 
20Gauge

20Gauge

TB Fanatic
Dozdoats said:
Because you won't know the dollar won't be accepted, until it's not.

Precisely. And replacing your mattress stuffing with FRN$ will not prove helpful at that point, either.

There needs to be a happy medium discovered between actual money in hand for long term savings, and currency for day to day transactions at present. Why is that so difficult to grasp for so many people?
Click to expand...
Maybe as it is a difficult thing for most to understand..... I have money, I spend money seems to be the way people are raised these days...
 
20Gauge

20Gauge

TB Fanatic
CaryC said:
When you think you might need to, and have the finances available.

IMHO and take it for what it's worth. You buy gold and silver to maintain wealth, not increase it, like the stock market.

'Course it's cool when you bought at 340.00 and not it's 1600+. I would not trade it like stock.

Doc1 does some selling on the side, and seems to know his stuff, you might ask him. He does sell some from time to time to bump his retirement, but that's what he bought it for.

Follow your gut. Gold has never been worth zero.
Click to expand...
Except when on the life raft that is sinking and you need to swim 10 miles to shore......lol

I actually agree. Buy and hold forever...
 
D

Dozdoats

On TB every waking moment
Silver seems to be "their" enemy.

Vampires (and vampire squids) are repelled by silver. Silver is the money upon which this nation was founded and grew prosperous, despite all the yammering about a gold standard. Silver is America's historical money. That ended beginning in 1964, and America's decline increased.

The Story of Silver: How the White Metal Shaped America and the Modern World: Silber, William L.: 9780691175386: Amazon.com: Books

The Story of Silver: How the White Metal Shaped America and the Modern World [Silber, William L.] on Amazon.com. *FREE* shipping on qualifying offers. The Story of Silver: How the White Metal Shaped America and the Modern World
www.amazon.com

51aXL1bP+hL._SX329_BO1,204,203,200_.jpg
 
NoMoreLibs

NoMoreLibs

Kill Commie's, Every Single One Of Them!
A pop up when I log into my 403b account:

Important information regarding market volatility
In light of recent market volatility, remember that your retirement plan is intended for long-term investment. Attempts to time the market are rarely successful. One way to manage risk over time is to ensure you have a diversified portfolio that is rebalanced through up-and-down markets. Keep your individual needs, goals and time horizon in mind and consult with your financial adviser if needed. It is important to note diversification and rebalancing do not ensure a profit and do not protect against loss in declining markets.


Yeah boy. Been into only in cash (good and bad, I know) and I'm still getting my pittance added daily, haven't gone backwards one cent.
 
colonel holman

colonel holman

Veteran Member
This is unvoidable and, in the long run, healthy. Also give PDJT cover for a market correction (blame it on the virus, not on policies). I expect a big correction, which will take another hit when dems nominate a commie as their candidate for pres. Once the epidemic burns out and DJT is reelected (about same time frame) the markets will rocket. Being in my 60s, I rolled a chunk of my mutual fund retirement accounts into a CD-like instrument whereby the $$ are invested in index mutual funds (done great so far until this wk) an I split the gains 50/50 with the megabanks that operate this instrument, in exchange for guaranteeing my investment principle never going down. The worse I could do is break even in a disastrous market. A reasonable compromise this late in my retirement horizon, and part of a diversified mix
 
Hfcomms

Hfcomms

EN66iq
A word of advice and a warning. For those that are cash strapped, but there are essentials that you need and intend to put it on plastic or load up the credit card you need to be careful. Obviously not encouraging people to take on debt but if this is really going down debt or not you need supplies. Here is the caution;

Personally I would only do so if I was convinced the system was coming down and there was no way out. There is a credit and liquidity crunch that started last September and it’s hitting a crisis point and this virus is putting it over the edge. With businesses shut down and supply chains collapsing nobody will be able to pay their bills for long.

What the banks will do following the examples of Greece and Cyprus several years ago is if they think people are starting to panic and have decided to load up their cards with debt they can’t pay they will turn off the access to those cards. We are at the tipping point with public perception now. If this market doesn’t snap back today and if there are steep declines tomorrow I wouldn’t be surprised if cards start to have ‘technical’ difficulties starting soon.

Everyone has to make the best decision they can looking at the big picture but they will turn off credit and access if they think a rout is coming. Be careful.
 
Hfcomms

Hfcomms

EN66iq
SouthernBreeze said:
Dumb question, I know, but can the market sell off cause bank runs to start?
Click to expand...

Absolutely. The markets and economy is a giant confidence game and the system only stays up by confidence. That is why Trump is so anal about the stock markets. Lose confidence and the sheep will panic.
 
Last edited:
colonel holman

colonel holman

Veteran Member
SouthernBreeze said:
Dumb question, I know, but can the market sell off cause bank runs to start?
Click to expand...
Things would have to go 1928-32. Didn’t happen in deep selloffs after that. Many newer mechanisms in place since then to protect from that. People have also learned that markets always correct downward, but alwyas come back. There has never been a 10-yr period of no gains in stock market. Nothing is foolproff beyond your personal household preps, but the market comes in second. The real hidden strength to US markets is the rest of the world’s investors put their money here, as the safest an best-prospect place on earth. And investors are not the stereotypical filthy rich fat-cat billionaires. The vast majority of the investment $$ represent regular midlle class working folks who have modest IRAs, 401k’s, college savings accts. Thus the investment risks are shared widely.
 
SouthernBreeze

SouthernBreeze

Has No Life - Lives on TB
Hfcomms said:
Absolutely. The markets and economy is a giant confidence game and she system only stays up by confidence. That is why Trump is so anal about the stock markets. Lose confidence and the sheep will panic.
Click to expand...

Thanks! It was just something I was wondering about. No one had mentioned the possibility, yet.
 
Red Baron

Red Baron

Paleo-Conservative
_______________
10:10 a.m. Tesla falls hard as China, virus fears bite

The electric vehicle market’s darling (TSLA) is getting the business end of investor coronavirus fears. The stock is tumbling by over 8% in what’s shaping up to be another ugly day on Wall Street, and underscores the risks associated with a multinational that is heavily reliant on China for manufacturing and demand.

more,

finance.yahoo.com

Stock market live updates: Dow drops 1190 points amid coronavirus fears, S&P 500 sees fastest correction in history

Headlines moving the stock market in real time.
finance.yahoo.com finance.yahoo.com
 
colonel holman

colonel holman

Veteran Member
Hfcomms said:
A word of advice and a warning. For those that are cash strapped, but there are essentials that you need and intend to put it on plastic or load up the credit card you need to be careful. Obviously not encouraging people to take on debt but if this is really going down debt or not you need supplies. Here is the caution;

Personally I would only do so if I was convinced the system was coming down and there was no way out. There is a credit and liquidity crunch that started last September and it’s hitting a crisis point and this virus is putting it over the edge. With businesses shut down and supply chains collapsing nobody will be able to pay their bills for long.

What the banks will do following the examples of Greece and Cyprus several years ago is if they think people are starting to panic and have decided to load up their cards with debt they can’t pay they will turn off the access to those cards. We are at the tipping point with public perception now. If this market doesn’t snap back today and if there are steep declines tomorrow I wouldn’t be surprised if cards start to have ‘technical’ difficulties starting soon.

Everyone has to make the best decision they can looking at the big picture but they will turn off credit and access if they think a rout is coming. Be careful.
Click to expand...
Then when they come out the other end of this, after the dust settles and life resumes normal, they find themselves saddled with crushing debt that screws up life for years.
 
Dennis Olson

Dennis Olson

Chief Curmudgeon
_______________
I find the hysteria on this thread over the stock market to be funny as hell. Y2K had the potential to be a true global supply chain ELE, but the stock market? Freakin spare me. I see many on this thread spinning themselves into a real emotional panic. You need to step back for awhile, breathe deeply, and let your pups (or kittehs).

Really. Calm the hell down.
 
colonel holman

colonel holman

Veteran Member
Dennis Olson said:
I find the hysteria on this thread over the stock market to be funny as hell. Y2K had the potential to be a true global supply chain ELE, but the stock market? Freakin spare me. I see many on this thread spinning themselves into a real emotional panic. You need to step back for awhile, breathe deeply, and let your pups (or kittehs).

Really. Calm the hell down.
Click to expand...
Correct. No need to volunteer for excess worry & misery.
 
CaryC

CaryC

Has No Life - Lives on TB
While the idea of markets/banks/currency is confidence based, and true.

There are some vast differences between now and '29, in each of those areas.

If people think they will need money, to pay for things, as in the credit crunch that Hfcomms suggested, THEN it can get dicey. Also in Cyprus the banks instituted a max. withdrawal per day, and there where lines around the block.

Getting ready to go -900
 
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