10:01 am: Energy stocks under pressure
The energy sector SPDR ETF lost 4.5% in the morning session, on pace for its sixth negative day in September. The ETF fell 46% this year, as oil prices were under pressure then that demand disappears. Monday’s decline was led by Occidental Petroleum, which fell more than 9%. Helmerich & Payne, National Oilwell and Schlumberger all lost about 6%. The weakness of the energy companies arose when the price of oil in West Texas cratered in part due to the expiration of the May futures contract. – Li, Francolla
9:50 a.m .: Netflix and Amazon go up again
Amazon and Netflix shares climbed 2.1% and 3.4% respectively, once again outperforming the big market and pushing their 2020 earnings to more than 30% each. The tech duo, both of whom reached record levels last week, are able to take advantage of the trend of staying at home amid the coronavirus epidemic. They are also among the first to fully compensate for the significant losses resulting from the pandemic liquidation. – Li
9:45 a.m .: if oil falls below this price, look below
Market technicians watch the West Texas Intermediate May futures contract crumble to see if it breaks $ 9.75 a barrel. It is a low price at which it had been twice before – in 1998 and 1986. So, if it goes below this level, it would be a record level on the futures market. WTI fell more than 37% to around $ 11.50 a barrel by mid-morning. The May contract expires Tuesday, and it dives because no one wants to take delivery of the physical goods in a market with no place to store it. The global glut of oil has made storage scarce. Traders said in places like western Canada and Wyoming that oil was selling at negative prices this morning. –Domm
9:32 am: stocks open with sharp drops, the Dow Jones loses 450 points
US stocks opened in the red on Monday, the Dow Jones industrial average down 480 points. The S&P 500 fell 1.5% and the Nasdaq Composite fell 1% as markets absorbed the economic fallout from the coronavirus crisis. The oil spiral continued to weigh on stocks. –Fitzgerald
9:16 a.m .: United Airlines reports loss of $ 2.1 billion from coronavirus stroke and calls for more federal assistance
United Airlines announced Monday a loss of $ 2.1 billion for the first quarter, as the coronavirus pandemic has reduced travel demand to the lowest level in decades. Chicago-based airline says it has applied for up to $ 4.5 billion in government loans in addition to about $ 5 billion in federal wage subsidies and loans it also expects to receive to overcome the crisis.
United is the first major US airline to detail the results – as it is preliminary – of the virus on its first quarter results. The disease and severe measures to prevent it from spreading, such as home stay orders, have wreaked havoc on air travel and prompted carriers to cut most of their flights. United said revenue fell 17% in the first quarter from a year ago to $ 8 billion. On an adjusted basis, United said it suffered a loss of approximately $ 1 billion during the quarter. United Airlines shares fell more than 5% in the pre-market trade. – Josephs
9:07 a.m .: Disney reaches two downgrades
Credit Suisse and UBS both demoted Disney to neutral, with the company’s theme parks still closed due to the coronavirus crisis. UBS said the parks are unlikely to reopen this year and that business will slow. Entertainment stock has dropped about 3% in pre-market trading and has underperformed the broader market so far this year. – Delivered
8:40 a.m .: Energy stocks drop sharply after oil collapse
Shares of oil producers and service companies fell in pre-market trading on Monday after oil prices fell to their lowest level in over 21 years. May’s West Texas Intermediate (WTI) futures contract in the United States fell to $ 11.04 per barrel on Monday, down nearly 40%, from its lowest level since December 22, 1998. Devon Energy and Noble Energy both fell more than 8%, while Occidental Petroleum fell 10%. Halliburton fell more than 7% after the oil services company warned of a sharp drop in activity due to oversupply and a massive drop in demand for oil. – Li
8:12 a.m .: Senate nears $ 370 billion deal for small business coronavirus loan programs
Democratic and Republican senators are on the verge of reaching an agreement that could inject about $ 370 billion into small business loan programs, a person close to the negotiations told CNBC. The talks come after the $ 349 billion paycheck protection program, which offers repayable loans to small businesses, ran out of money on Thursday. The Democrats rejected the proposal to top up the fund two weeks ago. Instead, they argued for change, including adding more money to support federal tests, hospitals and local governments. They also lobbied for groups without banking relationships to have access to the SNAP program and benefits. – Hirsch
7:59 a.m .: Shake Shack repays small business loan
The hamburger chain’s CEO said Monday that Shack Shack was repaying the $ 10 million small business loan he received from the government. The restaurant chain managed to raise about $ 150 million in a stock placement last week. The SBA loan program was part of the federal government’s $ 2.2 trillion bailout program to help small and medium businesses and their employees during the shutdown of the coronavirus. Shake Shack’s shares fell about 1.2% in pre-market trading on Monday. – Fitzgerald
7:50 a.m .: Oil drops to more than 20 years, pandemic ravages demand
Oil prices fell to their lowest level in more than 20 years on Monday as coronavirus continues to erode demand and traders fear that with rapidly filling tanks, there will soon be nowhere to be found store the crude. The price of West Texas Intermediate’s closest futures contract, which expires Tuesday, plunged 26% to $ 13.39 per barrel. The June delivery contract, which expires May 19, fell more than 8% to $ 22.91 a barrel, while the July contract was down about 5% to $ 28. Crude oil Brent, the international benchmark, traded 3.38% at $ 27.12 a barrel.
The front end of the “futures curve,” or the contract that expires tomorrow, has been hit the hardest as it applies to the fuel that needs to be delivered while most of the country remains stuck due to the pandemic. There is little demand for gasoline in refineries and storage tanks in the United States are approaching their limits.
“A tightening of trade before the expiration of futures contracts is exacerbated by the dislocation of fundamentals this time, contributing to these large price swings,” Rystad Energy oil market chief Bjornar Tonhaugen told CNBC. – Stevens
7:45 a.m .: Coronavirus updates: New York surpasses peak, U.S. deaths exceed 40,000
New York Governor Andrew Cuomo said on Sunday that the state had “passed the peak” of new cases, noting that the rate of infection had dropped with hospitalizations linked to the coronavirus. The governor said 507 people died of the virus in New York on Sunday, compared with 540 deaths reported on Saturday, the lowest daily toll in the state in more than two weeks. However, 1,300 people were hospitalized on Saturday, Cuomo said. At least 13,869 people have died in New York from the virus.
Despite optimistic news from the epicenter of the virus, deaths from COVID-19 in the United States surpassed 40,000 on Sunday, according to data from Johns Hopkins. The deadly virus has infected more than 759,000 Americans. Worldwide, the coronavirus has infected 2.4 million people and killed more than 165,000 people. – Fitzgerald
7:30 am: Dow Dow drops 500 points
Equity futures indicated declines at the opening on Monday, with Dow futures falling by more than 500 points. The S&P 500 and the Nasdaq are also expected to fall at the opening bell. The markets are digesting the latest news on coronaviruses as well as a 20% drop in oil prices in the United States. The profit season continues on Monday as investors await data on the severity of the COVID-19 epidemic that has hurt corporate profits. IBM reports after the bell.
The stocks are coming out of their second week of gains in more than two months. Last week, US stocks got a boost when the White House discussed reopening the economy and Gilead Sciences appeared to have an effective treatment for coronaviruses. – Fitzgerald
– with reports by Lauren Hirsh, Jesse Pound and Leslie Josephs from CNBC.
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