Dow futures tumble 900 points as U.S. coronavirus cases rise, after Fed's grim economic outlook

[Mike 03]

MarketWatch
Full Headline: Dow futures tumble nearly 900 points as U.S. coronavirus cases rise, after Fed’s grim economic outlook
By Mark DeCambre, Andrea Riquier
Published: Jun 11, 2020 8:38 am ET

Excerpt:

What’s driving the market?

The number of U.S. coronavirus infections passed the two million mark and over 112,000 Americans have died, according to Johns Hopkins University. Despite fewer cases being recorded in some cities and states, the seven-day average of new cases over the last two weeks is still rising in more than 20 states, leading investors to worry about a second wave of the epidemic just as business activity is resuming.

President Trump announced he will resume holding election rallies with the first in Tulsa, Oklahoma on June 19th but he is not expected to require that attendees practise social distancing.

The global case tally for the coronavirus climbed to 7.39 million on Thursday, according to data The death toll rose to 417,022.

“Up until yesterday financial markets didn’t appear overly concerned about the prospect of a second wave,” said Michael Hewson, chief market analyst at CMC Markets UK, in a Thursday research note. However, he noted that the “prospects, appear to have concentrated minds in the wake of recent gains, and sending the usual suspects of travel, as well as oil and gas stocks sharply lower”

Meanwhile, on Wednesday the Fed’s updated policy statement and projections indicate that it expects a 6.5% contraction by the end of the year on a year-over-year basis, with the unemployment rate ending at 9.3%, well above the Fed’s estimate of the long-run rate forecast of 4.1%.

Read more: https://www.marketwatch.com/amp/story/guid/24A5C128-AB87-11EA-A293-B6191294A097

[dem4decades]

1. Maybe some one could explain to me why it recovered so fast in the last few months?

The nation didn't do anything to make things better, other than a few states that is.

[Johnny2X2X]

2. Makes no sense

I am bet against the markets. They go down and I see gains. I’m thinking this was some profit taking be the big players in order to wring the last bit out before they leave for a while.

There’s no way investment houses are hanging in every jobs reports or economic news like it’s portrayed, they have their own plans.

My people (investment gurus I personally know) are telling me that stocks right now are at least 35% over valued. They’re saying we’ll see a DOW under 15,000 in the next 18 months.

[uponit7771]

10. At this point I'm shorting also, NAS is above peak and S&P and DOW to reach peak and go 10% over

... doesn't make sense either so I'll go short to a 5% correction.

But in the same sense none of the upswings have been organic with after hour falls and rises of 500 - 1000 pts.

Someone is doing some serious market playing

[Johnny2X2X]

14. Looks like you've your 5% correction

In about 3 hours of trading.

[uponit7771]

15. WOW !!!

[uponit7771]

5. J Powell buying junk bond ETF at 40 billion a month. That means no company should have money

... problems and going out of business cause the US government is literally buying their bond debt not "backing" the dept like Fanny May / Mack.

[tinrobot]

6. The stock market bets on the future of the economy.

A month or two ago, the future looked like the economy would open by summer.

Now, the future isn't looking so bright.

[dem4decades]

7. They're supposed to be smart money types, why would anyone have thought the economy would be

roaring when we did little to guarantee it? No contact tracing, no readily available tests, anyone with half a brain would know this thing was going to crash.

[uponit7771]

11. There has been no data change though other than Powell ... CONFIRMING ... most fed outlook

... of a shitty economy and near great depression 2 yr out unemployment.

[Alex4Martinez]

13. The Dow does not really measure "health" of the economy for the common person.

It measures the benefit to the investor class more than anything.

Economic activity that rises and falls so significantly is not sustainable, neither is a Dow, or an economy, that grows perpetually.

There always have to be victims, losers.

You and me, usually.

[uponit7771]

3. Biggest sucker rally in history, now someone has to justify NASDAQ & S&P going above peak for year

... and no one can explain that other than J Powell

[Wednesdays]

4. Oil has tumbled more than $2 in just the last 3 hours

[Buckeye_Democrat]

8. Did they finally look up from counting money...

... long enough to read the news?

[Hugin]

9. Well, they finally got together enough rubes for a good shearing.

Lots of hugh positions to unwind. Hugh!

Pump & Dump... Same as it always was.

[LizBeth]

12. I think it is just going up and down for rich people to make money, being manipulated.