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Stocks - Crude Awakening Hits Wall Street Amid Historic Slump in Oil

Stock MarketsApr 20, 2020 03:16PM ET
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© Reuters.

By Yasin Ebrahim 

Investing.com – Wall Street ended the session near the lows of the day, led by a slide in energy as oil prices slipped into negative territory for the first time ever, as many fret over storage capacity constraints at a time when the Covid-19 pandemic has hit demand.

The Dow fell 2.4%, or 594 points, the S&P 500 slipped 1.8% and the Nasdaq Composite lost 1%.

Energy stocks led the broader market lower, paced by a decline in the price of oil for delivery in May, which settled below zero for the first ever, amid weaker demand and fast-paced selling by speculators scrambling to sell long positions to avoid owning tacking physical delivery.

“Cushing is landlocked and stocks look likely to be full within 3 weeks,” said Chris Midgley at S&P Global Platts. “This weekend saw the price of WTI futures crash as traders had to sell long positions to avoid being caught having to deliver physical oil into the contract when there is no storage available.”

The slump in oil prices proved of little respite for airline stocks the sector is not expected to make a quick recovery amid uncertainty about how long the Covid-19 pandemic measures remain in place.

But there was some reason for optimism.

In New York state intubations fell by 32 compared with a 152 decline yesterday, while total hospitalizations were about flat compared with a total of 1384 a day earlier, according to New York Gov. Andrew Cuomo.  The Covid-19 curve in New York is “off of the plateau and now starting a descent,” he added.

Also weighing on the broader market, defensive corners of the market like utilities, and real estate fell nearly 4%.

Corporate earnings, meanwhile, underscored the impact from the coronavirus, which has killed about 168,000 and infected nearly 2.5 million worldwide.

United Airlines (NASDAQ:UAL) dropped 4.4% after warning of a $2.1 billion loss in the first quarter as revenue fell 17% to $8.0 billion amid a plunge in travel.

Elsewhere, Boeing (NYSE:BA) slumped 6.6% as China Development Bank Financial Leasing pulled its an order for 29 Boeing Co . 737 Max planes, worth at least $2.9 billion.

In sharp contrast, stocks that are expected to benefit from the current lockdown measures continued to climb, with Roku (NASDAQ:ROKU), Netflix (NASDAQ:NFLX), and Amazon.com (NASDAQ:AMZN) ended the day in the green.

Stocks - Crude Awakening Hits Wall Street Amid Historic Slump in Oil
 

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Comments (16)
mumtaz alam
mumtaz alam Apr 20, 2020 11:29PM ET
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crud bhelu to three days 15 $
Fred Smith
Fred Smith Apr 20, 2020 10:23PM ET
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Every non stock market American is happy filling up tomorrow..ha ha, who needs a hybrid battery or Telsa?
Dean Armato Jr
Dean Armato Jr Apr 20, 2020 10:23PM ET
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its not going to change the gas price that much gasoline differnet ball park and the refiners are crooked
Jose Erasmo Hernandez Yate
Jose Erasmo Hernandez Yate Apr 20, 2020 9:43PM ET
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who wants to make an investment fund ?
Johnny Crash
Johnny Crash Apr 20, 2020 9:37PM ET
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What happened to virus hopes, stimulus hopes and helicopter money?
Fred Smith
Fred Smith Apr 20, 2020 9:37PM ET
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Nancy is still holding us hostage
Joshhua Ray
Joshhua Ray Apr 20, 2020 7:59PM ET
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haha, crude like in crude oil...
Darren Hunt
Darren Hunt Apr 20, 2020 7:47PM ET
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central New York is ripping people off with gas prices . near me its 2.20 gallon
KATMANDU PYAKUREL
KATMANDU PYAKUREL Apr 20, 2020 7:47PM ET
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don't worry I just paid 2.39 gallon in Los Angeles
Kaveh Sun
Kaveh Sun Apr 20, 2020 7:47PM ET
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KATMANDU PYAKUREL 2.39 is cheap. I paid 2.51 a day ago.
Stuart Jim Cray
Stuart Jim Cray Apr 20, 2020 7:46PM ET
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Cars arent driving planes arent flying winter has ended, 100s of thousands restaurants closed not consuming oil, what would you expect?
David David
David9 Apr 20, 2020 7:46PM ET
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Don't be too happy...what comes down must 100% goes back up. Oil will see the $100 a barrel in the future.
Tom Trader
Tom Trader Apr 20, 2020 7:46PM ET
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You mean in 2035 right?
Dean Armato Jr
Dean Armato Jr Apr 20, 2020 7:46PM ET
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Tom Trader  i was thinking like $40 barrel by 2024 i think thats resomnable us shale producers dont want to go out i dont care for presidents any of them but trump is self serving like the rest and i doubt he will let all them ccompaiunes go out haliburton come on george bush jr mrs rice lol they aint going iout of buiness
Nelson Iwuoha
Nelson Iwuoha Apr 20, 2020 6:21PM ET
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wow that's interesting
MLawaL SnD TV
MLawaL SnD TV Apr 20, 2020 6:04PM ET
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Hello 🙌
Bulls MakeMore
Bulls MakeMore Apr 20, 2020 6:04PM ET
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Greetings and salutations, fellow earthling
Jon Bal
Jon Bal Apr 20, 2020 5:47PM ET
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i bet Yasin stayed up all night thinkin of that headline
Joshhua Ray
Joshhua Ray Apr 20, 2020 5:47PM ET
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it's crude and explosive.
Fred Smith
Fred Smith Apr 20, 2020 5:24PM ET
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I'm stranded all alone in the gas station of love. I will not be using the self service pump
Fred Smith
Fred Smith Apr 20, 2020 5:13PM ET
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I better get free car wash with fill up or else management will hear from me.
Fred Smith
Fred Smith Apr 20, 2020 5:05PM ET
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Free air now, get rid of those 5 quarters for air machines.
Joe Bartlett
Joe Bartlett Apr 20, 2020 4:59PM ET
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We need to maintain vital infrastructure and I think there is little danger of oil industry not being able to restart when demand comes back. Its a boom and bust industry. I am not happy for any lost jobs but lets not confuse job support and effective triage of the economy.
Top top
Top top Apr 20, 2020 2:03PM ET
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Recession on the way
 
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