Nasdaq, oil drop more than 3% as coronavirus spreads

• Global equities are in selloff mode as the number of new coronavirus cases flares outside China, with the disease now spreading to at least 28 countries.
• Italy confirmed 150 cases of the virus over the weekend, with officials verifying at least four deaths nationwide, while those diagnosed in South Korea are nearing 800.
• Over the weekend, Xi Jinping also called the coronavirus a "crisis and a test" for the world's second largest economy as the number of confirmed cases rose past 77,000, taking the death toll close to 2,600.
• Earlier today, China's Ministry of Culture and Tourism warned Chinese tourists not to travel to the U.S. because of excessive quarantine measures, saying Chinese tourists are being treated "unfairly." The move could escalate trade tensions.
• A steep drop is being seen at the open in the U.S., with Dow futures plunging over 600 points and crude oil down 3.5% at $51.50/bbl.
• Gold is up 2% to a seven-year high of $1681.80/ounce and the 10-year Treasury yield is 8 bps lower to 1.38%.
• Asia: KOSPI -3.9%; Hang Seng -1.9%; Shanghai -0.3%; Sensex -1.3%.
• Europe: FTSE MIB -4%; FTSE 100 -2.7%; CAC 40 -3.2%; DAX -3.2%.
• U.S. futures: Dow -2.2%; S&P -2.2%; Nasdaq -3.4%.

Comments

[AlexS]

Business reporting on today isn't very logical. We have panic selling on Monday. OK, what's the reason? Corona virus? It's been in the news for the last few months, at least. OK, anything else? Anything happen over the weekend? Hmm. Anything in Nevada? It's not the virus named Corona. It's the virus named Sanders.

[kimbillro]

Yes, something happened in Nevada yesterday. I won a small jackpot @AlexS .

[Rinascimento]

E-markets giveth, e-markets taketh...escape velocity catching up with gravity

[kimbillro]

Today they taketh @Rinascimento .

[pat45]

everything corona is up....had to sell some

[pat45]

also out my NUGT

[kimbillro]

They better not be raising prices on my Coronabeer @pat45 .

[pat45]

sounds like a good day for a few beers!!!

[User 49463880]

This is my biggest problem that I see with the coronavirus and the stock market.

1) If this is endemic and low mortality and everyone just accepts it..then buying the dip will work because of low interest rates, fed stimulus, and continued tech sector profits

2) If this is truly the black plague, then it doesn't matter if you bought the dip, or have cash on the side, or even have physical gold- we are all screwed.

So with that rationality... I bought the dip. Good luck investors.

[Futrader]

Should have been short the futures over the weekend or at least bought some puts on the SPY. Just even 1 contract on the Dow futures was good for almost $5k.

Jammed us into 10am getting us to 28,277. Hell of a bounce off the opening lows. After pulling back to 28,200, trying to push it higher. Double topped us. Will they do a 10:30 bounce?

[kimbillro]

I didn't buy the dip @ddssq . I live in a Faraday cage behind my garage so I am protected from X ray guns. @ddssq

[Rinascimento]

Is Elvis the king of Rock&Roll alive and well; some good ole style American Rock & Roll will shake down some BS going on markets and be better environment for investors in long term

[Jonk]

It's amazing to watch the ticker prices at the open.

[Futrader]

Wow, futures are back at the lows. Dow now down 900 points. What's the largest gap down ever? Nasdaq down 3.5%. Are there no buyers out there?

[Dividend Seeker]

I'm buying once the market opens...

[Djreef1966]

Shy!t just got real.

[Futrader]

And the Dow futures touch 28,000 exactly on the 9:30 open. Over 950 down. Bouncing big. Now 28,150. So are the stock prices going to come down to the futures or are the futures going to go up to the stock prices? Looks like stock prices came down to the futures.

Got a big bounce on the open to 28,163. Fell back to 28,1112 and now plowing higher. There's 28,200. Managed to get to 28,218 and now falling back. Dropped back to 28,128 and now bouncing.

So was that the biggest ever gap down?

[Eformula]

not sure why people say they don't know what to expect from this virus??? we know what the impact is from the 2009 h1n1 pandemic and how that disappeared within a year. besides it's not like this virus started yesterday, we have pretty good knowledge on how to contain it. the agencies just has to work on that because it's not even that many people. look at how many people ex China is infected

[vooch]

Run for the Hills, The sky is falling

SELL all your APPLE shares !!!!

Apple is D. O. O. M. E. D

[alyno]

do you believe what you are talking about, in this technical site they should address traders and investors about the reason for market collapsed, the reality is NASDAQ last week hits the weekly semi annual resistance and is not able to close above it which push the index to drop

[User 50039191]

Wait for the market to consolidate after a good 10-20% drop on coronafears and then add to positions. When the fed cuts rates and Trump wins re-election it will prove to be the opportunity of 2020 much like the October-December correction was.

[Dividend Seeker]

While you wait, buy munis seekingalpha.com/...

[brad_l]

Earlier today, China's Ministry of Culture and Tourism warned Chinese tourists not to travel to the U.S. because of excessive quarantine measures, saying Chinese tourists are being treated "unfairly." The move could escalate trade tensions.

lol hypocrisy at its finest! This coming from a country that doesn't take in refugees and imprisons Muslims and Christians, but the USA is discriminating because we are trying to limit exposure to this deadly virus. Ok China.

[Jonnhy99]

you folks focusing on the wrong thing, it's supply chain that is the problem for the markets, world economy hit is about be dirty for the next two quarters, korea joining the chinese virus party just made wallstreet wake up from its green binge. two industrial powerhouse coming to halt from this virus .

[imogen8]

The supply chain is boring and behind the scenes, so to speak, so people forget about it, but how we move medical supplies, essential goods and vaccines will be crucial during a pandemic or crisis.

[jims11]

The positive angle for this year, feds having to cut the rate further quicker than expected. Reduced global travel for pleasure, good for the environment while Tesla and the likes figure out better battery technology. People investing their money instead of travel in buying products and other services. Limiting travel from Iran probably helps war on terrorism without discrimination.

[Willow Street Investments]

Get out your shopping list...

seekingalpha.com/...

Only my GILD is doing well today. Now looking at AOS.

[PennyPlanSupporter]

Irrational fear can be profitable for the rational investor.

[HugeMagas]

Over 90% of the deaths due to coronavirus are people in the age span of 60-90 years, many of them already weakend by other illnesses.

[kimbillro]

If the old geezers would drink Coronabeer like I do they would get immunity from coronavirus.

[Manticore07]

Source please

[King Rat]

Others have already linked to this site before but it backs up what @HugeMagas is saying:

www.worldometers.info/...

[kimbillro]

It appears Not QE isn't working. They need to start up Yes QE 4 first thing in the morning.

[Dip Lake]

Buy and eat apples.It will keep the doctor away. Don`t buy gold because you can`t eat it.

[User 47924140]

Berkshire will be buying today.

[kimbillro]

Buffett buys for the long term like 30 years. He is 90 years old this year. He is an optimist.