Steve leishman alongside us helping us make sense of everything going on what the fed is thinking about all of this. The worst week for stocks since the financial crisis the vix surging, bond yields falling the even new lows. Stephanie link, a minute ago the nasdaq was positive. It went from positive to down 1. 5 in about ten minutes, if that. I know. What does that tell you about sort of where we are is that how a bottoming process happens . Doong we are close i hope so i think people are very confused obviously. Right . It is not surprising that the market went down because of this, because the virus has gotten so expanded the surprise has been the speed of the decline to lose 6 trillion in Market Company in six days, thats remarkable i dont know when we are going to bottom. But i am looking at an rsi on the s p at 20. And vix, jon you can talk more about that but a vix at 47, to me it seems a bit extreme. Then i look at what happened in the shanghai index it fell 14 the beginning of
On it so fears of a supply shock are rattling stocks and Global Markets as outbreak continues investors are more used to dealing with the occasional threat of negative demand shocks an unexpected hit to demand for goods and services but the potential for a negative supply shock and unexpected change in the supply of a product or commodity is more unnerving this is not something weve really seen since back in the Great Depression days and and world war 2 days you know were going to go to rationing remember world war 2 rationing became the standard way of dealing with supply shortages and in the case of medicine and food probably rationing tickets to buy j. P. Morgan and jamie diamond thats no good prices they wont be able to make money and theyre the ones behind the electronic food stamps right those are all jamie diamond so now thats going to go wide jamie diamond food rationing coupons of course the supply shock is being met. With a supply of more cash everywhere you look hong kong wa
Residents 10000. 00 hong kong dollars i know in china they were giving the equivalent of 1500. 00 as well to any citizen or resident of will hand who self reported coronavirus and in fact did have it so they were encouraging people to come forward and not hide amongst the population and in order to get them to stop so they were there was air drops there and in terms of the u. S. Of course were already seeing that as guaranteed almost that theres going to be a rate cut in march and theres going to be you know this month and then theres going to be a rate cut to more by the end of the year so were going to going to 0 the treasury yields are obviously at historic lows as well so where were heading to 0 its the dollar toilet paper arbitrage at some point one sheet of toilet paper will cost more than 1. 00 coin. It is rapidly approaching they can air drop all the money they want and all theyre going to do is cause more dislocation especially with the cantillon effect so youll have toilet pa
Weve ever been. We are doing great other countries have not our consumer is very, very strong very powerful economically hope comes in many forms. This morning, shares of one biotech are surging as treatment for the outbreak continuing. Stocks are set to continue their wild ride this morning as dow futures indicate an open that could be about 150 points to the down side you can see 150 points is where we would open. S p down by about 21 and nasdaq down by about 67 it may seem bad but it is earlier than it was. We were down significantly more so far this session. Since the selling zban, the dow has been down for five sessions in a row checking now the bond market as the 10year trades at its lowest level weve dropped 1. 3 twoyear note yields 1. 1. Record lows this week. Selling continues overnight with asian markets. Early trading in europe as well. We have Team Coverage this morning. Matt taylor in singapore Julianna Tatelbaum in london matt, well go to you first. Asian markets in the r
98 of the stocks to the downside s p 3,000, 10year yield at 1. 25 if you were right on this move, thats a really logical place to say, fine, let me cash in a little bit i think thats what we saw this morning. Not to guild d lily, but we were almost 1,000 points caterpillar has had a spurt in the last few minutes 3m has been positive merck and pfizer im not saying anything is turning around but some people are buying here. The problem is the information vacuum here. The old saying, you cant trade on fundamentals, trade on the technicals the problem is we cant trade on the fundamentals because we dont know what the earnings in the p e ratio should be right now. We saw that with the dispute with goldman going to zero percent Earnings Growth for 2020 then technical, everyone was saying were watching the 200day moving average, we went through that just after the open its hard to trade on fundamentals right now, hard to trade on the technical, and we need a lot more information on whats goin