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Stock Market Plunges. What Happens Next?

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On Tuesday, we saw a massive stock market dump. The Dow Jones Industrial Average plunged almost 900 points.

The stock market has been in a bit of a freefall over the course of the last couple of weeks, and I have been predicting this for a while.

It turns out that when you mess with the market mechanisms, people don’t like it. Investors tend to take the money out of the market and wait for things to be a little calmer, a little steadier. If you think of the free markets essentially as an ocean, sometimes it’s pretty choppy out there. Right now, it’s choppy.

If this administration is blamed for the choppy waters, that will be quite bad — not just for this administration, but also for everything it represents in the public mind.

Today, Emerson released a new poll showing President Trump’s handling of the economy underwater by 11 points. His job approval rating remains at 47-45, which is largely due to the widespread and correct perception that he totally changed the game on immigration. We are experiencing the lowest levels of illegal immigration ever recorded in the United States, as far as I’m aware. (Read more from “Stock Market Plunges. What Happens Next?” HERE)

Japan’s Nikkei 225 Index Plunges 7% as Worries Over US Economy Shake World Markets

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Japan’s benchmark Nikkei 225 stock index plunged as much as 7.1% early Monday before recovering some lost ground, extending sell-offs that began last week.

At one point, the Nikkei shed more than 2,500 points. By the time of the Tokyo market’s midday break, the index was down about 5.5%, or about 1,900 points, at 33,945.43. . .

Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to tame inflation. Early Monday, the future for the S&P 500 was 1.4% lower and that for the Dow Jones Industrial Average was down 1.5%.

“To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become,” Stephen Innes of SPI Asset Management said in a commentary. “The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?” (Read more from “Japan’s Nikkei 225 Index Plunges 7% as Worries Over US Economy Shake World Markets” HERE)

The Stock Market Is a ‘Superbubble’ About to Burst, Top Hedge Fund Manager Warns

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Stocks are off to a tough start this year. The tech-heavy Nasdaq is already in a correction, a more than 10% drop. And if one the most influential hedge fund managers is to be believed, this could be only the beginning of a very painful time for investors.

Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO) said in a report called “Let the Wild Rumpus Begin” that stocks are now in the midst of a “superbubble,” that it won’t end well. . .

He noted that US stocks have experienced two such “superbubbles” before: 1929, a market fall that led to the Great Depression, and again in 2000, when the dot-com bubble burst. He also said the US housing market was a “superbubble” in 2006 and that the 1989 Japanese stock and housing markets were both “superbubbles.” . . .

“In a bubble, no one wants to hear the bear case. It is the worst kind of party-pooping,” Grantham wrote. “For bubbles, especially superbubbles where we are now, are often the most exhilarating financial experiences of a lifetime.” (Read more from “The Stock Market Is a ‘Superbubble’ About to Burst, Top Hedge Fund Manager Warns” HERE)

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Stocks Jump Higher and Close in on Best Month Since 1974

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The U.S. stock market is a day away from having its best month since 1974.

The optimism helped the S&P 500 jump 2.66 percent higher, and it extended a rally that’s brought the U.S. stock market to the brink of its best month in 45 years. The S&P 500 has surged more than 15 percent in April, putting it within one day of its best month since its 16.3 percent gain in October 1974. . .

Stocks in Europe also jumped immediately after Gilead Sciences said its experimental drug proved effective against the new coronavirus in a major U.S. government study. The French CAC 40 rose 2.2 percent after being down before the Gilead report. The German DAX returned 2.9 percent, and the FTSE 100 in London added 2.6 percent.

Gilead’s report hit markets at the same moment that a report showed how pervasive and painful the hit has been to the economy from the coronavirus outbreak. The U.S. economy shrank at a 4.8 percent annual rate in the first three months of the year, its worst performance since the depths of the financial crisis in 2008.

The figure was worse than investors were expecting, and it’s “merely the tip of the iceberg,” said Michael Reynolds, investment strategy officer at Glenmede. Job losses have exploded since early April, as layoffs sweep the nation following widespread stay-at-home orders, and economists expect to see even worse numbers for the second quarter of the year. (Read more from “Stocks Jump Higher and Close in on Best Month Since 1974” HERE)

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Dow Drops More Than 500 Points to Start the Week After Historic Oil Plunge

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By CNBC. Stocks fell sharply Monday, retreating after back-to-back weekly gains, as a historic decline in U.S. crude prices raised concerns about the economic damage being done by coronavirus shutdowns. A delay in funding the for the depleted small business rescue loan program also weighed on sentiment.

The Dow Jones Industrial Average closed 592.05 points lower, or 2.5%, 23,650.44. The S&P 500 slid 1.8% to 2,823.16. The Nasdaq Composite pulled back 1% to 8,560.73.

Boeing fell more than 6% to lead the Dow lower while Chevron and Exxon Mobil dropped more than 4% each. Energy, real estate and utilities were the worst-performing sectors in the S&P 500, falling more than 3% each.

The May contract for West Texas Intermediate, which expires on Tuesday, plunged more than 100% to settle at negative $37.63 per barrel, a bizarre move tied to weak demand outlook and storage capacity issues.

The negative impact on stocks from oil likely would have been worse were it not for lesser declines in oil contracts expiring during future months. WTI’s June contract slid over 15.6% to $21.09 per barrel. July’s oil contract was down 6.9%. It was a strange phenomenon that analysts chalked up to the collapse in demand for oil contracts expiring this week. Refineries don’t need the oil and are near storage capacity with most of the country shut down. The negative price means producers will pay to take this oil off their hands. (Read more from “Dow Drops More Than 500 Points to Start the Week After Historic Oil Plunge” HERE)

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Oil Crashes 305% to -$36.73 a Barrel

By Fox Business. U.S. oil prices plummeted in historic fashion Monday, crashing below zero as traders unloaded positions ahead of the May contract’s Tuesday expiration.

West Texas Intermediate crude oil futures for May delivery cratered by 305 percent to -$36.73 a barrel. At a price below zero, buyers would be paid to take delivery as there are costs associated with transportation and storage. The selling had WTI on track to close at its lowest level since recordkeeping began in March 1983, according to Dow Jones Market Data. . .

The May contract is a “horror show” and “heading into the worst delivery situation in history,” Phil Flynn, senior market analyst at Price Group Futures, told FOX Business. “With demand still dead and OPEC+ cuts not hitting fast enough, the market looks like it has no bottom.”

Demand for crude oil is projected to fall by 29 million barrels per day this month, according to the International Energy Administration, as COVID-19 has forced countries around the world to issue “stay-at-home” orders to slow the spread of the disease. Lower economic activity means weaker demand for crude oil and its byproducts, including gasoline and jet fuel. (Read more from “Oil Crashes 305% to -$36.73 a Barrel” HERE)

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Stock Market Takes a Sharp Upturn After Coronavirus Drug Shows Promising Results

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By The Blaze. The Dow Jones Industrial Average jumped by more than 800 points in futures trading on Thursday after a report showed that a drug meant to treat coronavirus had promising results.

The Dow Jones has cratered after a historic drive upward after the coronavirus pandemic began to shut down economies all over the world.

Futures traded upward on the news that Remdesivir, a Gilead Sciences drug, was shown to be effective in treating coronavirus patients with severe symptoms in a trial at a Chicago hospital.

The stock market could have also been responding positively to the Trump administration revealing a plan by Dr. Deborah Birx to slowly ease the restrictions on economic activity. (Read more from “Stock Market Takes a Sharp Upturn After Coronavirus Drug Shows Promising Results” HERE)

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Dow Futures Rally More Than 800 Points After Gilead Coronavirus Drug Reportedly Shows Effectiveness

By CNBC. U.S. stock futures surged after a report said a Gilead Sciences drug was showing effectiveness in treating the coronavirus. The move pointed to a jump for the stock market on Friday.

Dow Jones Industrial Average futures were up 845 points, implying a Friday opening gain of about 832 points. S&P 500 futures and Nasdaq 100 futures also pointed to gains for the two indexes at the Friday open.

Gilead shares jumped by 16.41% in after-hours trading after STAT news reported that a Chicago hospital treating coronavirus patients with Remdesivir in a trial were recovering rapidly from severe symptoms. The publication cited a video it obtained where the trial results were discussed.

“This is obviously good news. Of course, we’ve heard a few other pieces of good news like this recently and they didn’t pan-out as well as people had hoped,” said Matt Maley, chief market strategist at Miller Tabak, in an email. “The big question is whether it’s going to be enough to help the economy ‘re-open’ more quickly than people are thinking right now.” (Read more from “Dow Futures Rally More Than 800 Points After Gilead Coronavirus Drug Reportedly Shows Effectiveness” HERE)

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Dow Rallies More Than 500 Points on Improving Virus Outlook

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Stocks jumped on Tuesday, resuming the market’s sharp rebound from last month’s lows, as investors grew more optimistic about the coronavirus outlook.

The Dow Jones Industrial Average rallied 558.99 points, or 2.4%, to 23,949.76. The S&P 500 climbed 3.1% to 2,846.06 while the Nasdaq Composite advanced nearly 4% to 8,515.74. The tech-heavy Nasdaq notched its first four-day winning streak since early February.

The S&P 500 was led higher by 4% rallies in tech, consumer discretionary and consumer staples. Amazon rose to an all-time high to lead the Nasdaq higher.

“When you look at the facts, I think there’s reason to be more hopeful than we have been,” CNBC’s Jim Cramer said. “The worst-case scenario’s been taken off the table, and if Apple and Google can do contact tracing that we all embrace … while we continue to roll out more testing, the economy could reopen a lot sooner than we thought even, say, three weeks ago.” . . .

The corporate earnings season kicked off on Tuesday with JPMorgan Chase and Johnson & Johnson reporting their latest quarterly results, giving investors their first look at how devastating the hit to corporations has been from the pandemic. (Read more from “Dow Rallies More Than 500 Points on Improving Virus Outlook” HERE)

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Stocks Surge Higher, Dow Jumps More Than 7%

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By Breitbart. Stocks soared on Monday as evidence emerged that the lockdowns have effectively slowed down the spread of the coronavirus epidemic and death tolls in hotspots appear to have stopped rising.

The Dow Jones Industrial Average rose 1,627.46 points, a 7.73 percent gain, to 22,679.99. The S&P 500 jumped 7 percent, with all 11 sectors rising. The Nasdaq Composite rose 7.3 percent. The averages ended the day close to their highs for the session, often a signal of growing bullish sentiment.

Boeing shares soared 19.47 percent, the best performing Dow stock. Apple, Visa, and McDonalds shares were all up by more than 10 percent. Proctor & Gamble, the worst-performing Dow stock of the day, was up 2.37 percent. (Read more from “Stocks Surge Higher, Dow Jumps More Than 7%” HERE)

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Dow Jones Futures Drop, as Coronavirus Stock Market Rally Powers Up; 6 Leaders to Watch Include Amazon, Netflix

By Investor’s Business Daily. The Dow Jones futures were sharply lower in Tuesday morning’s trading session, along with S&P 500 futures and Nasdaq futures, giving back a small part of Monday’s big coronavirus stock market surge. Top stocks to watch include Dow Jones leaders Apple (AAPL) and Microsoft (MSFT), FANG stocks Amazon (AMZN), Facebook (FB) and Netflix (NFLX) and Monday’s breakout stock Vertex Pharmaceuticals (VRTX). . .

Late Monday, Dow Jones futures traded 0.8% lower vs. fair value, while S&P 500 futures fell 0.7%. The Nasdaq 100 futures sold off 1.1% vs. fair value ahead of Tuesday’s stock market open.

During Monday’s press briefing, President Trump commented on the current progress of a potential coronavirus treatment. He said, “Currently, ten different therapeutic agents are in active trials and some are looking incredibly successful. But they have to go through a process and it’s going to be a quick process based on what the FDA told me.” (Read more from “Dow Jones Futures Drop, as Coronavirus Stock Market Rally Powers Up; 6 Leaders to Watch Include Amazon, Netflix” HERE)

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Justice Department Looking Into Senator’s Stock Sell-Off

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Senate Intelligence Committee Chairman Richard Burr sold off a large amount of stocks before the coronavirus market crash, and now the Justice Department is looking into his statements around this time period, NPR can report.

Media outlets including CNN, The Wall Street Journal and The Associated Press have also reported that the FBI has reached out to Burr to assess whether he made stock sales based on nonpublic information.

NPR first broke news of a secret recording in which Burr, R-N.C., privately warned well-connected constituents in February about how bad the coronavirus crisis would become. . .

As chairman of the Intelligence Committee and a member of the Health, Education, Labor and Pensions Committee, Burr may have received private information about the coming pandemic.

“Was [that information] something that you and I, if we were shareholders of that company, would have reasonably expected it to be considered significant at the time?” said Doug Davison, a former Securities and Exchange Commission enforcement lawyer, laying out a key question that investigators would have. “The investigation needs to be surgical in the sense that you need to really focus like a laser on what information was provided to the Congress folks. Was it material? Was it nonpublic?” (Read more from “Justice Department Looking Into Senator’s Stock Sell-Off” HERE)

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Corrupt Republicans Use Insider Knowledge, Dump Stocks Before Market Crash

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Editor’s note: Although the big offenders were Republican — likely acting on insider information — it was revealed after the below stories broke that Democratic Senator Dianne Feinstein did the same. Restoring Liberty has long maintained that corruption is endemic to both parties.

Third GOP Senator Caught Selling Equity Before the Market Crash — This Time up to $25 Million Worth

By Raw Story. On Monday, March 2nd, the Dow Jones Industrial Average set its biggest-ever point gain.

But Sen. Ron Johnson (R-WI) was massively selling.

Johnson, who has a net worth estimated at over $36 million, made a major transaction.

The exact amount is unknown, as ethics forms only require disclosure in broad ranges, but Johnson reported selling over $5 million that day — and potentially up to $25 million. . .

Sen. Richard Burr (R-NC) and Sen. Kelly Loeffler (R-GA) reported dumping stock before market crash. (Read more from “Third GOP Senator Caught Selling Equity Before the Market Crash — This Time up to $25 Million Worth” HERE)

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AOC Calls on Senate Intelligence Chairman Richard Burr to Resign for Stock Sell-Off Ahead of Pandemic

By NBC News. Rep. Alexandria Ocasio-Cortez, D-N.Y., is calling on Sen. Richard Burr, R-N.C., to resign after reports Thursday that the powerful Intelligence Committee chairman had privately warned well-connected donors of the dire impacts of the coronavirus pandemic last month while selling off up to $1.6 million of his own stocks.

Ocasio-Cortez said on Twitter that as chairman of the Intelligence Committee, Burr “got private briefings about Coronavirus weeks ago. Burr knew how bad it would be. He told the truth to his wealthy donors, while assuring the public that we were fine. THEN he sold off $1.6 million in stock before the fall. He needs to resign.”

Ocasio-Cortez was referring to two separate reports about Burr’s activities in February.

ProPublica reported that Burr — who co-wrote an op-ed for Fox News in early February saying “the United States today is better prepared than ever before to face emerging public health threats, like the coronavirus” — sold off the stock around mid-February, about a week before the market started to drop because of coronavirus concerns.

That included selling off up to $150,000 worth of shares of Wyndham Hotels and Resorts, which has lost two-thirds of its value, ProPublica reported. He also sold off up to $100,000 of shares of another hotel chain, Extended Stay America. (Read more from “AOC Calls on Senate Intelligence Chairman Richard Burr to Resign for Stock Sell-Off Ahead of Pandemic” HERE)

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Tucker Carlson Calls on Sen. Richard Burr to Resign Over Stock Dumping Reports

By Newsweek. Intelligence Committee Chairman Senator Richard Burr of North Carolina sold over $1 million in stocks, including stocks in two lodging and hospitality chains, in February before the coronavirus pandemic sent the markets into a tailspin according to Thursday reports.

Whether Burr’s decision to sell the stocks was influenced by information about the coronavirus has yet to be confirmed, but Fox News host Tucker Carlson said Thursday that Burr, co-author of a February op-ed piece which claimed that the U.S. was “better prepared than ever before to face emerging public health threats, like the coronavirus,” should resign from office and be placed on trial for insider trading.

“[Burr] had inside information about what could happen to our country, which is now happening,” Carlson said. “But he didn’t warn the public. He didn’t give a primetime address. Didn’t go on television to sound the alarm. He didn’t even disavow an op-ed he had written just ten days before claiming that America was, quote, ‘better prepared than ever for coronavirus.'”

“Instead, what did he do? He dumped his shares in hotel stocks so he wouldn’t lose money,” Carlson continued. “And then he stayed silent. Now, maybe there’s an honest explanation for what he did. If there is, he should share it with the rest of us immediately. Otherwise, he must resign from the Senate and face prosecution for insider trading.” (Read more from “Tucker Carlson Calls on Sen. Richard Burr to Resign Over Stock Dumping Reports” HERE)

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