Stock market news live updates: Stocks hit session lows after WHO designates coronavirus outbreak a pandemic - Yahoo Canada Finance | Canada News Media
The S&P 500, Dow and Nasdaq tumbled Wednesday as the volatility of the past couple weeks extended further.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Midday Wednesday, the World Health Organization officially designated the coronavirus outbreak a pandemic, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow sank more than 1,200 points following the announcement.” data-reactid=”17″>Midday Wednesday, the World Health Organization officially designated the coronavirus outbreak a pandemic, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow sank more than 1,200 points following the announcement.
Stocks’ afternoon leg lower extended declines from earlier in the regular and overnight sessions. During the pre-market session, stock futures slumped after the White House failed to offer further details on a stimulus package President Donald Trump earlier this week had characterized as “very major.” The measures reportedly in consideration included a payroll tax cut and expanded worker protections, to help counteract any economic fall-out from the ongoing coronavirus outbreak.
While further fiscal stimulus in the U.S. remains a point of uncertainty, overseas, central bankers have unleashed further monetary stimulus aimed at counteracting the economic hit from COVID-19.
The Bank of England on Wednesday announced a surprise half-point interest rate cut at the conclusion of a special meeting, following a similar move from the U.S. Federal Reserve last week.
“Following the spread of COVID-19, risky asset and commodity prices have fallen sharply, and government bond yields reached all-time lows, consistent with a marked deterioration in risk appetite and in the outlooks for global and UK growth,” the BOE said in a statement Wednesday, “Indicators of financial market uncertainty have reached extreme levels.”
The BOE’s move brought the main bank rate down to 0.25%, and was decided unanimously by the bank’s officials.
“Temporary, but significant, disruptions to supply chains and weaker activity could challenge cash flows and increase demand for short-term credit from households and for working capital from companies,” the BOE said. “This economic shock will affect both demand and supply in the economy.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2:48 p.m. ET: Fed boosts size of repo operations even further as COVID-19 outbreak stirs up market turmoil” data-reactid=”25″>2:48 p.m. ET: Fed boosts size of repo operations even further as COVID-19 outbreak stirs up market turmoil
The Federal Reserve Bank of New York announced Wednesday that it is increasing the size of its overnight and term repurchase agreement (repo) operations starting Thursday, according to a statement Wednesday.
The Fed said it would offer at least $175 billion in daily overnight repo operations starting Thursday and continuing through April 13. Previously, the Fed had raised overnight offerings to $150 billion, from $100 billion, from Monday, March 9 through Wednesday. At least $45 billion in two-week term repo operations twice per week during the period will also be offered.
The Fed also announced it will offer three one-month term repo operations starting March 12, with each of these set at at least $50 billion.
“These operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation,” the New York Fed said in the statement. “They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”
The Fed “will continue to adjust repo operations as needed to foster efficient and effective policy implementation consistent with the FOMC directive,” it added.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2:20 p.m. ET: Dow drops 20% from recent high during intraday trading,” data-reactid=”32″>2:20 p.m. ET: Dow drops 20% from recent high during intraday trading,
The Dow plummeted more than 20% from its recent closing high of February 12 intraday during Wednesday’s session, crossing below 23,641.13 points.
The 30-stock index would enter a bear market if the Dow holds at or below this level into market close. A bear market is typically defined a drop of at least 20% from a recent closing high, as measured into market close.
Here were the main moves in the market, as of 2:20 p.m. ET:
S&P 500 (^GSPC): -143.67 points (-4.98%) to 2,738.56
Gold (GC=F): -$16.20 (-0.98%) to $1,644.10 per ounce
10-year Treasury (^TNX): up 3.2 bps to yield 0.784%
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:57 p.m. ET: U.S. economic activity will contract in Q2, UBS says” data-reactid=”44″>1:57 p.m. ET: U.S. economic activity will contract in Q2, UBS says
UBS downgraded its forecast for U.S. gross domestic product and said it now expects U.S. economic activity will turn negative in the second quarter.
“We revise our US forecast because of the global effects of the coronavirus and the recent collapse in oil prices. The coronavirus has triggered adverse shocks to both supply and demand,” UBS economists led by Seth Carpenter wrote in a note Wednesday.
“We have long noted that cheap oil is a big risk to the US; the hit to investment, employment, and production outweigh the benefit to consumers of energy,” they added. “Our previous soft 2020H1 forecast is now worse, with outright contraction in Q2 and weakness extending into Q3.”
UBS left unrevised its expectation that GDP would grow at a 0.6% seasonally adjusted annualized rate in the first quarter. In the second quarter, GDP will decline by 0.8%, before recovering slightly to 1.2% growth in the third quarter.
“In our base case, we assume that the coronavirus continues on its current course and burns itself out in a couple quarters. Activity in China continues to improve and reaches normal levels in the second half of March,” the analysts said. “We do not assume that the US engages in meaningful restrictions, so the disruptions to the US economy come through supply chain disruptions from imports, from reduced demand, and the fall in oil prices.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:09 p.m. ET: Stocks hold near session lows after WHO declares coronavirus a pandemic” data-reactid=”55″>1:09 p.m. ET: Stocks hold near session lows after WHO declares coronavirus a pandemic
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Each of the three major indices slid further after the World Health Organization officially declared the coronavirus outbreak a pandemic, after weeks of reserving use of the term to describe the global spread of the virus.” data-reactid=”56″>Each of the three major indices slid further after the World Health Organization officially declared the coronavirus outbreak a pandemic, after weeks of reserving use of the term to describe the global spread of the virus.
The Dow tumbled more than 1,250 points, or 5%, while each of the S&P 500 and Nasdaq was off at least 4% following the announcement, which was made during a WHO press conference.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""Pandemic is not a word to use lightly or carelessly,” said WHO Director-General Tedros Adhanom Ghebreyesus. “It is a word that, if misused, can cause unreasonable fear, or unjustified acceptance that the fight is over, leading to unnecessary suffering and death.”” data-reactid=”58″>”Pandemic is not a word to use lightly or carelessly,” said WHO Director-General Tedros Adhanom Ghebreyesus. “It is a word that, if misused, can cause unreasonable fear, or unjustified acceptance that the fight is over, leading to unnecessary suffering and death.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""81 countries have not reported any #COVID19 cases, and 57 countries have reported 10 cases or less,” he added. “We cannot say this loudly enough, or clearly enough, or often enough: all countries can still change the course of this pandemic.”” data-reactid=”59″>”81 countries have not reported any #COVID19 cases, and 57 countries have reported 10 cases or less,” he added. “We cannot say this loudly enough, or clearly enough, or often enough: all countries can still change the course of this pandemic.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The WHO’s definition of a pandemic was “the worldwide spread of a new disease” as of 2010. The WHO last declared a pandemic in 2009 to describe the H1N1 influenza outbreak. According to the U.S. Center for Disease Control and Prevention, a pandemic “an epidemic that has spread over several countries or continents, usually affecting a large number of people.”” data-reactid=”60″>The WHO’s definition of a pandemic was “the worldwide spread of a new disease” as of 2010. The WHO last declared a pandemic in 2009 to describe the H1N1 influenza outbreak. According to the U.S. Center for Disease Control and Prevention, a pandemic “an epidemic that has spread over several countries or continents, usually affecting a large number of people.”
“We have never before seen a pandemic sparked by a #coronavirus.
And we have never before seen a pandemic that can be controlled at the same time.
WHO has been in full response mode since we were notified of the first cases”-@DrTedros#COVID19
Losses in the three major indices accelerated mid-morning, with the Dow shedding more than 1,000 points.
Declines in the 30-stock index were led by Boeing and Dow Inc., while UnitedHealth Group was the only component narrowly in the green. In the S&P 500, the Financials and Real Estate sectors lagged.
Here were the main moves in markets, as of 10:54 a.m. ET:
S&P 500 (^GSPC): -105.72 points (-3.67%) to 2,776.51
Dow (^DJI): -1,008.74 points (-4.03%) to 24,009.42
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:35 a.m. ET: Boeing to draw down credit line as virus woes reverberate” data-reactid=”76″>10:35 a.m. ET: Boeing to draw down credit line as virus woes reverberate
“After 11 years, 13% annualized earnings growth and 16% annualized trough-to-peak appreciation, we believe the S&P 500 bull market will soon end,” Goldman said in a note to clients published Wednesday.
The firm said it expects year-over-year earnings per share (EPS) for S&P 500 companies will ultimately be $157 in 2020, marking a decline of 5% versus last year. This was the second time Goldman Sachs slashed its aggregate S&P 500 EPS forecast in two weeks.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Drivers of our reduced EPS estimate include lower crude oil prices and interest rates that diminish Energy and Financial company profits,” the strategists led by David Kostin said in a note. “Domestic business activity outside of those sectors is also likely to be weaker than we originally forecast, as underscored by reduced or withdrawn guidance from a number of firms in recent weeks.”” data-reactid=”84″>“Drivers of our reduced EPS estimate include lower crude oil prices and interest rates that diminish Energy and Financial company profits,” the strategists led by David Kostin said in a note. “Domestic business activity outside of those sectors is also likely to be weaker than we originally forecast, as underscored by reduced or withdrawn guidance from a number of firms in recent weeks.”
The firm mapped out a scenario in which the S&P 500 drops about 15% to 2,450 by mid-2020, as falling growth expectations and consumer confidence weighs on valuations. By the end of 2020, however, the strategists said a recovery in earnings and sentiment will help lift the S&P 500 to 3,200.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:31 a.m. ET: Stocks open lower as traders hope for stimulus to offset hit from coronavirus” data-reactid=”88″>9:31 a.m. ET: Stocks open lower as traders hope for stimulus to offset hit from coronavirus
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): -75.57 points (-2.62%) to 2,806.66
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:18 a.m. ET: Warren Buffett reacts to the stock market rout, oil crash amid the coronavirus outbreak” data-reactid=”98″>9:18 a.m. ET: Warren Buffett reacts to the stock market rout, oil crash amid the coronavirus outbreak
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Via Andy Serwer, Yahoo Finance Editor in Chief” data-reactid=”99″>Via Andy Serwer, Yahoo Finance Editor in Chief
Not as bad as 2008 or 1987.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="That’s what Warren Buffett said about the current coronavirus, oil shock market maelstrom.” data-reactid=”101″>That’s what Warren Buffett said about the current coronavirus, oil shock market maelstrom.
“If you stick around long enough, you’ll see everything in markets,” Buffett said. “And it may have taken me to 89 years of age to throw this one into the experience, but the markets, if you have to be open second by second, they react to news in a big time way.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE HERE” data-reactid=”103″>READ MORE HERE
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8:30 a.m. ET: Core consumer price index rose the most in five months ahead of coronavirus impact
An index tracking trends in domestic consumer prices rose faster than expected in February before COVID-19 became more widespread in the U.S.
Headline CPI rose 0.1% month on month and 2.3% over last year, or slightly faster than the 0.0% month on month pace and 2.2% year over year rate expected.
Excluding more volatile food and energy prices, the CPI rose 0.2% over last month and 2.4% over last year, with the latter representing the fastest pace of gains in five months.
“Net, net, there’s still inflation in February but maybe not for much longer with the spreading coronovirus fears darkening the economic outlook,” Chris Rupkey, chief financial economist at MUFG Union Bank, said in a note. “The wheels of the economy can’t continue to turn as fast if the whole country avoids social interaction and tries to live online through the Internet. With less store traffic, merchants may have to actually cut prices instead of raising them.”
While February’s CPI data highlights a firming of inflationary trends, it is unlikely to influence the Federal Reserve’s future decisions, given it captured the period before the outbreak meaningfully escalated at the end of the month.
“The Fed is more likely to move on March 18 in anticipation of the COVID-19 hit, not reaction to last month’s data,” Scott Clemons, chief investment strategist of private banking for Brown Brothers Harriman, said in an email to Yahoo finance. “If anything, inflation is almost certain to move lower over the next few months as the fall in energy prices is more fully reflected.”
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7:48 a.m. ET: Stock futures tumble as coronavirus fears linger
Stock futures sank again Wednesday morning, continuing a run of volatility that has sent risk assets into a tailspin.
Here were the main moves in markets, as of 7:49 a.m. ET:
S&P 500 futures (ES=F): 2,793.50, down 72.25 points or -2.52%
Dow futures (YM=F): 24,260.00, down 589 points or -2.37%
Nasdaq futures (NQ=F): 8,143, down 188.5 points or -2.26%
Ten-year Treasury note: yielding 0.707%, down 4.5 basis points
NEW YORK, NEW YORK – MARCH 10: Traders work on the floor of the New York Stock Exchange (NYSE) on March 10, 2020 in New York City. After losing nearly 8 percent in a market rout yesterday, the Dow Jones Industrial Average was up over 700 points in morning trading as investors look to a possible tax cut and other measures by the Trump administration to combat the coronavirus. (Photo by Spencer Platt/Getty Images)
Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.
The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.
Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.
The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.
Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”
“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.
“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”
Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.
The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.
It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.
Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.
It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.
“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.
Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.
The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.
Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.
The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.
“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.
Asked how long that environment could last, he said that’s out of Telus’ hands.
“What I can control, though, is how we go to market and how we lead with our products,” he said.
“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”
Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.
On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.
That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.
Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”
“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.
“We will continue to monitor developments and will take further action if our codes are not being followed.”
French said any initiative to boost transparency is a step in the right direction.
“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.
“I think everyone looking in the mirror would say there’s room for improvement.”
This report by The Canadian Press was first published Nov. 8, 2024.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
