Day Traders Diary

4/1/20

The major averages kicked off the second quarter on a sour note amid concerns the coronavirus will keep the economy shut down longer than expected. The Dow Jones Industrial Average closed down 973 points or 4.4%, to 20,943. The S&P 500 and the Nasdaq both slid exactly 4.41%.

President Donald Trump said Tuesday evening the U.S. should prepare for a "very, very painful two weeks" from the rampant coronavirus. White House officials are projecting between 100,000 and 240,000 virus deaths in the U.S.

New York Gov. Andrew Cuomo said Wednesday he is closing all New York City playgrounds, adding the state's model projects a high death rate through July. He also said cases in New York state now total more than 83,000.

Boeing, American Express and Dow Inc all fell more than 7.5% to lead Dow industrials lower. Real estate investment, utilities, energy and financials led the S&P 500 lower with each of those sectors down at least 5%.

On Tuesday, the Dow and S&P 500 closed out their worst first-quarter performances of all time. The Dow fell more than 23% in the first quarter; that was also its biggest quarterly fall since 1987. The S&P 500 fell 20% in the first quarter, its biggest quarterly loss since 2008.

In the oil market, The Wall Street Journal reported that President Trump will meet with the CEOs of some of the largest U.S. oil companies on Friday to discuss how the government can help the industry. WTI crude spiked on the news before settling down 1.0%, or $0.20, to $20.32/bbl.

U.S. Treasuries finished mixed with longer-dated Treasuries advancing in a safe-haven bid. The 2-yr yield increased two basis points to 0.22%, while the 10-yr yield declined six basis points to 0.64%. The U.S. Dollar Index rose 0.5% to 99.50.