• Business
    Bloomberg

    U.S. Stocks Plunge, Bonds Surge After CDC Warning: Markets Wrap

    (Bloomberg) -- U.S. stocks tumbled to an almost 12-week low and bond yields plunged to records on rising concern the coronavirus will upend global supply chains critical to economic growth.The S&P 500’s four-day rout reached 7.6%, with losses accelerating Tuesday after the U.S. Centers for Disease Control and Prevention warned Americans to prepare for a coronavirus outbreak at home. That follows a rapid increase in cases from Italy to Iran and Japan, with a growing list of companies warning that profits will suffer as economies around the world suffer. The S&P, Dow Jones Industrial Average and Nasdaq Composite indexes all set record highs this month.The 10-year U.S. Treasury yield fell to a record low of 1.3055% as investors sought shelter from the virus’s impact on the outlook for growth. All 11 sectors in the S&P 500 fell with energy, material and financial shares leading the declines. Volatility spiked, sending the Cboe’s measure of equity gyrations surging past 30 for the first time since 2018.“The market is pricing in a significant slowdown in GDP and a 10% impact on earnings,” said Zhiwei Ren, portfolio manager at Penn Mutual Asset Management. “And since no one knows how bad the infection will be, it is hard to make a bet on economy.”U.S. central bankers are closely monitoring the spreading coronavirus, but it is “still too soon” to say whether it will result a material change to the outlook, Federal Reserve Vice Chairman Richard Clarida said.Elsewhere, European stocks closed in the red, while bonds from the region were mixed. Crude oil slumped again after Monday’s slide of nearly 4%.Japanese shares tumbled more than 3% as traders returned after a holiday. Stocks fell in China and Australia and pushed higher in South Korea and Hong Kong. The yen strengthened against the dollar for a third day.Erratic market moves suggest investors remain on edge over the economic impact of the virus. The World Health Organization has held off from declaring a global pandemic even as cases surged in South Korea, Italy and Japan.“We know there will be supply disruptions, the question now is to what extent will it affect economic growth and more importantly for the stock market earnings growth,” said Sandip Bhagat, Whittier Trust Co.’s chief investment officer “The market is repricing to that new reality.”Analysts at Oxford Economics Ltd. said the epidemic could wipe more than $1 trillion from global domestic product, while the International Monetary Fund lowered its growth forecasts for the world economy.These are some key events coming up:Earnings keep rolling in from companies including: Peugeot SA on Wednesday; Baidu Inc., Best Buy Co. Inc., Occidental Petroleum Corp. and Dell Technologies Inc. on Thursday; and London Stock Exchange Group Plc on Friday.The Democratic presidential debate in South Carolina is on Tuesday.The Bank of Korea announces its policy decision on Thursday, with rising risks of an interest-rate cut.U.S. jobless claims, GDP and durable goods data are out Thursday.Japan industrial production, jobs, and retail sales figures are due on Friday.These are the main moves in markets:\--With assistance from Nancy Moran and Sarah Ponczek.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Sports
    Motorious

    Ferrari Blacklisted These Celebrities From Purchasing Their Supercars

    You don't own a Ferrari, Ferrari owns you.Even if you have deep pockets, one still may not get past Ferrari's acceptance to purchase one of their new supercars. Owning one of these cars is more of a lifestyle than anything else, and they call the shots on who they

  • Politics
    The Week

    Watch Elizabeth Warren tell a Sanders supporter that Bernie helped write the delegate rules he now opposes

    At a CNN town hall in South Carolina on Wednesday night, a Bernie Sanders supporter asked Sen. Elizabeth Warren (D-Mass.) about a moment in the Nevada Democratic debate where all the candidates but Sanders said if nobody has a majority of votes by the convention, the process should play out as written, potentially handing the nomination to somebody with fewer delegates. "Can you explain why the will of the voters should not matter if no candidate reaches a majority of delegates?" he asked. Warren began her answer with a question: "So, you do know that was Bernie's position in 2016?""That was Bernie's position in 2016, that it should not go to the person who had a plurality," Warren continued. "And remember, his last play was to superdelegates. So the way I see this is, you write the rules before you know where everybody stands. And then you stick with those rules." Sanders "had a big hand in writing these rules — I didn't write them, but Bernie did," she added. "Those are the rules that he wanted to write and others wanted to write. Everybody got in the race thinking that was the set of rules. I don't see how come you get to change it just because he now thinks there's an advantage to him for doing that." Elizabeth Warren is right. pic.twitter.com/EegW7Dz77V — Sawyer Hackett (@SawyerHackett) February 27, 2020The system could work to Sanders' advantage, too. In the Nevada caucuses, for example, Sanders got 34 percent of the votes in the first round and ended up at 40 percent in the final preference, 47 percent of the final vote, and 22 delegates; Warren got 13 percent in the first round, ended up with 11.5 percent of the final voter preference, 10 percent of the final vote, and zero delegates. If you can support ranked choice voting, you can support nominating convention rules that allow candidates who don't start with the most delegates to win after the first ballot. — Bill Scher (@billscher) February 27, 2020Goose, gander, ect.More stories from theweek.com Harvard scientist predicts coronavirus will infect up to 70 percent of humanity Israel is the first country to warn its citizens not to travel abroad over coronavirus fears Louisiana governor demands judge step down after she admits to using racial slurs

  • U.S.
    Reuters

    U.S. Supreme Court dismisses 'D.C. Sniper' Malvo case after change in law

    The U.S. Supreme Court on Wednesday formally dismissed a case in which Lee Boyd Malvo, who was 17 when he took part in the deadly 2002 "D.C. Sniper" shooting spree in the Washington area, was challenging his life without parole sentence. The move comes after a new law was passed in Virginia, where Malvo is incarcerated in a supermax state prison. The measure, signed into law on Monday, lets people sentenced to life in prison without the possibility of parole for offenses committed before age 18 - as Malvo was - to seek release after 20 years.