Shares fall, Treasury yields stoop amid ongoing coronavirus fears

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    U.S. shares fell Friday, including to losses from the prior session as traders fled to secure haven belongings together with gold and Treasuries. Current residence gross sales knowledge, IHS Markit’s February buying managers’ indices for the U.S. and coronavirus developments remained a spotlight for traders.

    2:37 p.m. ET: Shares maintain decrease as session rolls on

    Shares remained decrease with lower than 90 minutes left of the buying and selling day. The S&P 500 and Nasdaq had been every off greater than 1% as huge tech shares slid. Microsoft and Apple had been the worst performers within the Dow.

    Right here had been the principle strikes in markets, as of two:37 p.m. ET:

    • S&P 500 (^GSPC): -1.17% or -39.34 factors to three,333.89

    • Dow (^DJI): -0.84% or -245.43 factors to 28,974.64

    • Nasdaq (^IXIC): -1.97% or -192.61 factors to 9,558.43

    • Crude oil (CL=F): -0.87% or -$0.47 to $53.41 a barrel

    • Gold (GC=F): +1.67% or +$27.00 to $1,647.50 per ounce

    10:00 a.m. ET: Current residence gross sales decline lower than anticipated in January

    Current residence gross sales fell by 1.3% month on month to a seasonally adjusted annual price of 5.46 million in January, the National Association of Realtors said Friday. This beat consensus economist expectations for a decline of 1.8% to a seasonally adjusted annual price of 5.44 million anticipated. In December, current residence gross sales registered at 5.53 million.

    In January, declines had been led by a drop in gross sales of beforehand owned houses within the West. These fell 9.4% over December. Gross sales had been little modified to flat within the Midwest, South and Northeast.

    9:48 a.m. ET: 30-year U.S. Treasury yield hits all-time low

    The 30-year U.S. Treasury yield sank greater than 7 foundation factors Friday morning to an all-time low of 1.8904% as of 9:48 a.m. Friday morning, based on Bloomberg knowledge, amid broad-based shopping for in U.S. authorities bonds. Yields had been decrease throughout the curve, and the yield on the 10-year be aware remained beneath that of the shorter-duration 3-month invoice.

    9:45 a.m. ET: IHS Markit U.S. composite buying managers’ index sinks to the bottom stage since 2013

    The U.S. flash composite buying managers’ index (PMI) dropped sharply beneath expectations and into contractionary territory in February, IHS Markit mentioned Friday. The weak spot was led by a stoop within the U.S. companies sector, because the coronavirus outbreak hit journey and tourism-related industries.

    The composite PMI registered at 49.6 for February, coming in nicely beneath the print of 53.Three from January and marking the bottom stage in seven years. Readings beneath the impartial stage of 50 point out contraction.

    Throughout the composite print, the manufacturing PMI got here in at a six-month low of 50.8, beneath expectations for 51.5.

    The service sector PMI slumped to a greater than six-year low of 49.4. Consensus economist had anticipated this to return in at 53.4, which might have matched January’s stage.

    Right here’s what Chris Williamson, chief enterprise economist at IHS Markit, needed to say concerning the outcomes, according to a statement:

    Except the government-shutdown of 2013, US enterprise exercise contracted for the primary time for the reason that world monetary disaster in February. Weak point was primarily seen within the service sector, the place the primary drop in exercise for 4 years was reported, however manufacturing manufacturing additionally floor nearly to a halt attributable to a near-stalling of orders.

    Complete new orders fell for the primary time in over a decade. The deterioration in was partly linked to the coronavirus outbreak, manifesting itself in weakened demand throughout sectors reminiscent of journey and tourism, in addition to through falling exports and provide chain disruptions. Nonetheless, corporations additionally reported elevated warning in respect to spending attributable to worries a couple of wider financial slowdown and uncertainty forward of the presidential election later this 12 months.

    9:43 a.m. ET: Gold trades at seven-year excessive

    Gold costs jumped greater than 1%, or $21.80, Friday morning amid a flight to secure haven belongings. At greater than $1,640 an oz., the dear steel was buying and selling at its highest stage since March 2013. Gold was on monitor for its greatest week in eight months as of intraday buying and selling Friday.

    9:33 a.m. ET: Shares drop, secure havens climb round market open

    Shares opened decrease Friday morning, holding onto losses from the in a single day session.

    Declines within the Dow had been led by Exxon Mobil and Goldman Sachs. Within the S&P 500, the Power sector lagged as crude oil costs dropped practically 2%. Gold and Treasuries climbed, with the yield on the 10-year be aware down 3.5 foundation factors to beneath 1.5%.

    Right here had been the principle strikes in markets, as of 9:33 ET:

    • S&P 500 (^GSPC): -0.42% or -14.01 factors to three,359.22

    • Dow (^DJI): -0.39% or -113.77 factors to 29,106.21

    • Nasdaq (^IXIC): -0.42% or -40.57 factors to 9,711.2

    • Crude oil (CL=F): -1.82% or -$0.98 to $52.90 a barrel

    • Gold (GC=F): +1.35% or +$21.80 to $1,642.30 per ounce

    7:49 a.m. ET: Deere & Co. shares bounce in pre-market buying and selling after firm beats 1Q expectations

    Heavy gear vendor Deere & Co. (DE) posted higher than anticipated outcomes for its fiscal first quarter as farmer sentiment picked up after U.S.-China commerce tensions deescalated.

    The corporate posted adjusted earnings of $1.63 per share on gross sales of $6.53 billion, higher than the $1.25 per share on $6.28 billion in gross sales anticipated, based on Bloomberg knowledge.

    Deere maintained its steering for the complete 12 months, saying it anticipated internet earnings in a spread of between $2.7 billion to $3.1 billion. The midpoint of this vary was greater than consensus analysts anticipated.

    “Farmer confidence, although nonetheless subdued, has improved due partly to hopes for a leisure of commerce tensions and better agricultural exports. On the identical time, exercise within the development sector has slowed resulting in decrease gross sales and revenue for our Development & Forestry division,” CEO John Might mentioned in an announcement.

    “Additionally impacting leads to Deere’s development gear enterprise had been our actions to cut back manufacturing unit manufacturing and decrease inventories in response to present market circumstances,” he added. “Moreover, the quarter included prices of a voluntary employee-separation program, which is among the many steps Deere is taking to enhance flexibility and effectivity.”

    Shares of Deere had been up 7% in early buying and selling. The inventory had been down 4% for the 12 months up to now by Thursday’s shut.

    7:38 a.m. ET: Inventory futures decline in early buying and selling

    U.S. inventory futures edged decrease in early buying and selling, extending losses from Thursday. Every of the three main indices was set to say no for a second straight session.

    Friday’s buying and selling day comes on the heels of a unstable session Thursday, with the S&P 500, Dow and Nasdaq every off by greater than 1% on the lows of the session. Whereas no single catalyst was essentially in charge, some analysts instructed a broad-based erosion of investor confidence was at play.

    “[Thursday’s’ midday selloff had many root causes, but all signal poorer investor confidence than that reflected in U.S. stock prices,” Nicolas Colas, co-founder of DataTrek, wrote in a note. “3M-10Y Treasury spreads went to new 2020 levels of inversion and 30-Year yields [neared] file lows once more.”

    In the meantime, the euro declined, and the Japanese yen and South Korean received fell in response to coronavirus fears, Colas added. “Backside line: export extra turbulence forward,” he mentioned.

    In China, the Hubei province on the epicenter of the coronavirus outbreak revised its technique of counting instances for the third time this month, additional undermining confidence within the nation’s official counts. The province’s well being fee mentioned on Friday that the entire variety of new confirmed instances for Thursday was 631, versus the 411 reported earlier, since jail tallies had not beforehand been accounted for within the area’s coronavirus reporting community. Globally, the coronavirus has killed greater than 2,200 people amongst greater than 76,00Zero instances.

    Right here had been the principle strikes in the course of the pre-market session, as of seven:38 a.m. ET:

    • S&P 500 futures (ES=F): 3,357.00, down 12.25 factors or 0.36%

    • Dow futures (YM=F): 29,081, down 90 factors or 0.31%

    • Nasdaq futures (NQ=F): 9,582.25, down 42 factors or 0.44%

    • Crude oil (CL=F): $52.94 per barrel, down $0.94 or 1.74%

    • Gold (GC=F): $1,636.80 per ounce, up $16.30 or 1.01%

    Merchants work in the course of the opening bell on the New York Inventory Alternate (NYSE). (Picture by Johannes EISELE / AFP) (Picture by JOHANNES EISELE/AFP through Getty Pictures)

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