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Futures are sharply lower this morning, but not enough to erase all of yesterday’s gains. Jobless claims were just released and came in 1K higher than expectations (216K vs 215K). Given the weakness in equities, the yield on the 10-year is not surprisingly back well below 1.0%. A lot can change between now and the close, so we’ll see how the day shakes out as the number of cases rise, events get canceled, more schools close, and companies continue to lower guidance.
Read today’s Bespoke Morning Lineup for the latest stock-specific news of note, updates on the coronavirus, and a discussion of the latest proposed OPEC cuts in oil production.
US futures are lower, and the S&P 500 is already 7.5% from its record close in February. Don’t look now, but one major economy’s equity benchmark saw a 52-week high on a closing basis overnight, and it was China! China’s CSI 300 has now fully recovered all of its losses from the coronavirus outbreak after a 2.5% gain overnight. Now, before you dismiss it all as China propping up its market by prohibiting investors from selling, we would note that the US-based ETF that tracks the index (ASHR) also closed yesterday within 2.5% of its 52-week high. In other words, investors can freely buy and sell the Chinese market.
The US is another story. Equities are still sharply off their highs. Yesterday, we noted the emerging uptrend in both the S&P 500 and Russell 2000 on an intraday basis. One thing to note about yesterday’s rally is that for both indices, the market closed right before they were able to make a higher high. With both indices now poised to open sharply lower, the first important level to watch is yesterday’s low in the S&P 500 of roughly 3,033.