Market: Wall Street registers new annual floors

  •   13/03/2020 - 11h23
  •   DEHOUI Lionel

Wednesday's session ended with many differences exceeding -15% or even -20%. Worse, these are the powerful S&P and Dow. At the same time, Boeing recorded a net debt of $28 billion with a drop of -18%. Its capitalization is thus divided in two (2) in only six (6) months. The Dow Jones is almost at its lowest point with a fall of -1.465 points or -5.86% to 23,553 points (closing at -1.690). As for the S&P 500, it falls by -4.9% to 2.741 points and the Nasdaq by -4.7% with the Russel-2000 from -6.4% to 1.265 points.

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Market: Wall Street registers new annual floors
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The VIX, the US and Trump indices

It has been 48 hours since the VIX set a new 10-year record of 625. Yesterday, it jumped +15% to a record high of 55.8%. On the other hand, the U.S. index were already down -8% since Monday. They are therefore expected to have disastrous values. All this is far from being good news for investors faced with the heavy consequences of the health crisis.

At a time when the world of investors is worried on all continents, Donald Trump wants to reassure through a statement from the White House. He believes that the health crisis will be resolved, that a major effort will be made to support small businesses and that the health of the country is the priority. Indeed, according to the American President, the country will not need a stimulus if it emerges from the said crisis very quickly.

 

Financial values with annual lows

If there is a massive shift from "BBB" to "HY", it is clear that the financial stocks sector is exposed, and this in a very natural way. The establishment of a new unscrew has favoured the listing of new lows which are not negligible. For example, JP-Morgan -4.7%, Morgan Stanley -6.7%, Goldman Sachs -6.8%, American Express -7.7%, Wells Fargo -7.9% and Citigroup -8.6%. The Bank of America sector index fell -5.4%.

In addition, individual apartment and housing builders also experienced losses. Some examples are: Lennar (-10%), DR-Horton (-10.5%), Pulte (-10.8%), etc. In addition, the Nasdaq has been influenced by the backlash of massive sales by some world-class companies. These are AMD (+0.7%), Apple (-3.5%), Intel (-4.3%), Facebook (-4.5%), Applied Materials (-6.6%), Cisco (-7.6%), Analog Devices (-7.8%), Illumina (-8.3%), Micron (-8.7%), Microchip (-9.9%), etc.

 

Values in the oil market

Black gold (oil) fell again by -3.5% to $33.1 thanks to a sharp increase in weekly US oil reserves. In fact, inventories increased by +7.7 million barrels according to the EIA to 451.8 million barrels. The expectation of an increase to 2.3 million barrels is thus thwarted. Some prices have seen collapses in the oil and oil-related securities sector. Here are those that are fairly representative: Apache (-23.5%), Noble (-20%), Occidental (-17.7%), Nal Oil (-13.3%), Pioneer (-12.1%), Valero (-10%), Halliburton (-9.6%), Marathon Oil (-7.1%), Schlumberger (-4.5%), Exxon (-3.3%), etc.