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The Dow Jones Industrial Average will attempt to rebound today after the worst single day for the markets since the 1987 crash.
The uptick comes after the New York Fed announced intentions to inject roughly $1.5 trillion in liquidity in the markets to help stabilize short-term lending.
We'll dive into these stories and more in a moment. But first, here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Let's take a look at the most important market events to start your day.
The Top Stock Market Stories for Friday
- This morning, the S&P 500 will start the day for the first time ever in bear market territory. The S&P 500 joins the Dow in bear territory for the first time since markets rebounded from the Great Recession in March 2009. Yesterday, the S&P 500 slumped 9.5% as the ongoing downturn pushed investors to run for the exits and we hit "limit down" for the second time in a week.
- Meanwhile, the U.S. Federal Reserve is poised to meet next week to discuss a potential interest rate cut. Markets suggest that we could move toward the zero-bound limit next week. Hedge fund manager David Tepper suggests that the Fed should pull out all stops to prevent a complete meltdown in the markets. Tepper has suggested that the central bank look at buying mortgages or Treasury bonds to help support the economy.
- Finally, oil prices are rallying this morning, despite news that they are set to experience the worst week since 2008. WTI crude jumped more than 6%, while Brent added more than 6.3%. Crude oil prices have been slumping over the last week since Saudi Arabia announced intentions to stop cooperating with Russia and dramatically increase production.
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Stocks to Watch Today: BRK.A, DIS, CMCSA, WORK
- Berkshire Hathaway Inc. (NYSE: BRK.A) head Warren Buffett has announced that the company will hold its annual shareholder meeting without investors in attendance. "I very much regret this action; for many decades, the annual meeting has been a high point of the year for me and my partner, Charlie Munger," Buffett said in a letter to shareholders. "It is now clear, however, that large gatherings can pose a health threat to the participants and the greater community." The event will be held online.
- Shares of Walt Disney Co. (NYSE: DIS) continue to slide due to the ongoing coronavirus crisis. The company had been reeling due to the cancellation of major sporting events, a trend that will directly impact its ESPN property. Now, the firm has announced it will shutter Disneyland through the end of March. Comcast Corp. (NASDAQ: CMCSA), which owns Universal Studios, has announced a similar plan as well.
- Shares of Slack Technologies Inc. (NASDAQ: WORK) plunged as much as 20% overnight after the firm announced earnings after the bell. The firm said that it lost $0.04 per share, well below the $0.01 loss that analysts had projected. It also announced that revenue came in lower than analysts' expectations. Slack had received a significant amount of investor interest in recent days due to it being a "work from home" stock.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.