The Dow Jones Industrial Average will see another volatile day as state governments ramp up precautionary measures against the coronavirus pandemic.
Global financial institutions are beginning to admit the financial realities facing the world. Morgan Stanley (NYSE: MS) announced this morning that a global recession is now the organization's base case.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
|Index||Previous Close||Point Change||Percentage Change|
Here are the most important market events and the stories that I'm following right now.
The Top Stock Market Stories for Tuesday
- The downturn comes as the White House has an almost impossible job: deciding which industries need a bailout. Reports indicate that the Senate is considering at least a $750 billion stimulus option for major companies and individuals. U.S. President Donald Trump said he wants to help save the hospitality, cruise, and airline industries. However, aid packages may also need to assist banks that have been caught flatfooted by this crisis.
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- Oil prices could easily fall under $20 in the coming weeks due to a price war between the Saudi Arabian regime and Russia. Brent crude fell below $30 on Monday for the first time since 2016. This means that the global benchmark is now off more than 30% since the start of the year.
- Meanwhile, the United States now has more than 4,600 cases of the coronavirus with at least 85 deaths to date. The state of New York has the most cases, followed by Washington. Companies have been increasingly aggressive about shuttering locations to help improve "social distancing" measures. Today, Microsoft Corp. (NASDAQ: MSFT) announced that it will close all 364 stores for two weeks in an effort to contain the spread of the deadly disease.
Stocks to Watch Today
- Shares of Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) were on the move this morning on news that it will have a clinical treatment for COVID-19 ready for trial during the summer. This is much earlier than expected. The firm said that the new treatment could prevent and treat COVID-19.
- Boeing Inc. (NYSE: BA) debt was downgraded to BBB from A- ratings by Standard & Poor's. The ratings agency said that the firm's cash flow was going to be much weaker than expected over the net two years. This comes at a time that the aviation giant is seeking a bailout from the White House.
- Nordstrom Inc. (NYSE: JWN) announced that it will shutter its stores in North America for the next two weeks in an effort to contain the coronavirus. The firm said that it plans to provide payment to its employees during this period.
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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.