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Stocks - Dow Falls as Economic Data, Earnings Dent Hopes of V-Shaped Recovery

Stock MarketsApr 15, 2020 04:08PM ET
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© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow closed above session lows on Wednesday, but investor sentiment got a gut check as dire economic data and earnings dampened hopes of a quick economic recovery.

The Dow fell 1.86%, or 445 points, but had fallen by as many as 716 points at the lows of the day. TheS&P 500 slipped 2.2% and the Nasdaq Composite fell 1,44%.

Growing expectations the economy is set to open sooner rather later has underpinned investor hopes it could be set for a robust recovery, but economic data, including a record plunge in retail sales, suggested the optimism may have been overdone.

The Commerce Department said on Wednesday that retail sales fell 8.7% last month, confounding economists’ forecasts for an 8% decline. But the retail sales control group – which has a larger impact on U.S. GDP – rose  1.7%, compared with a forecast for a 2% decline.

Manufacturing activity in New York, which had already been under pressure pre-coronavirus pandemic, deteriorated further, also fell a record low reading of -78.2.

Underscoring the impact of the Covid-19 pandemic, the Federal Reserve's Beige Book economic report warned further job cuts are expected in the coming months and the economic conditions are set to worsen.

The bleak outlook on the labor market comes just a day ahead of the weekly jobless claims report due Thursday.

On the earnings front, meanwhile, Wall Street banks continue to flag further economic uncertainty ahead.

Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Bank of America (NYSE:BAC) reported a widely-expected plunge in profit, with latter closing more than 6% lower.

The trio of banks also increased their reserves for credit losses by billions of dollars amid expectations for a jump in loan defaults from customers in the coming months.  

Energy led the broader market, paced by a decline in oil prices to more than an 18-year low despite reports the White House is mulling plans to pay drillers to stop production in order to combat the glut in crude supply and save jobs.

Fears over a glut in supplies, led by a coronavirus-led hit to demand intensified as the Energy Information Administration reported a weekly crude build of 19.25 million barrels.

Stocks - Dow Falls as Economic Data, Earnings Dent Hopes of V-Shaped Recovery
 

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Comments (24)
Haresh Chandwani
Haresh Chandwani Apr 15, 2020 9:33PM ET
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Well maybe the trump pump has lost steam already!
Get Sirius
Get Sirius Apr 15, 2020 9:33PM ET
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I doubt but it will in the end
Anthony Ramunno
Anthony Ramunno Apr 15, 2020 9:30PM ET
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Its a long way before the V recovery is threatened!
Haresh Chandwani
Haresh Chandwani Apr 15, 2020 9:26PM ET
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As if all this denting of earnings wasn't obvious.. Get ready for 10k Dow!
Kaveh Sun
Kaveh Sun Apr 15, 2020 9:15PM ET
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There is no v shape recovery if u watch stocks. It happens only when there r market manipulation. They push it down real quick, everybody panic. When the panic dies, people realize they were fooled and quickly jump back in.
Anthony Ramunno
Anthony Ramunno Apr 15, 2020 9:15PM ET
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Its very close to a V. You just have to squint to see it.
john richards
john richards Apr 15, 2020 9:00PM ET
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I don;t know anyone expecting a V except the guy in the mirror. He only expects that because the always wrong leftists keep insisting no V.
Johnson Gray
Johnson Gray Apr 15, 2020 8:57PM ET
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There were people hoping for a V shaped recovery?
Viktor Delacroix
Viktor Delacroix Apr 15, 2020 8:07PM ET
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V shape? the index never represents the market for a long time.
john richards
john richards Apr 15, 2020 7:51PM ET
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So apparently the virus was made in a lab and the WHO knew that and covered it up. Have to ask how can the leftists be wrong every single time?
Show previous replies (1)
Dee Jones
Dee Jones Apr 15, 2020 7:51PM ET
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Anthony Crowley https://www.google.com/amp/s/www.washingtonpost.com/opinions/2020/04/14/state-department-cables-warned-safety-issues-wuhan-lab-studying-bat-coronaviruses/?outputType=amp
Dee Jones
Dee Jones Apr 15, 2020 7:51PM ET
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Anthony Crowley https://www.google.com/amp/s/www.forbes.com/sites/kenrapoza/2020/04/14/the-washington-post-goes-rogue-china-lab-in-focus-of-coronavirus-outbreak/amp/
Dee Jones
Dee Jones Apr 15, 2020 7:51PM ET
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Anthony Crowley Two different sources for you, neither from Alex Jones
Dee Jones
Dee Jones Apr 15, 2020 7:51PM ET
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Anthony Crowley Also Wuhan CDC let WHO know about a pneumonia like illness early on..so this is awkward
Anthony Crowley
Anthony Crowley Apr 15, 2020 7:51PM ET
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Well done buddy. I'll go with that.
JoAnn Agatheas
JoAnn Agatheas Apr 15, 2020 7:21PM ET
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We are not even open yet why whould we expect a V shape recovery today? Don't over do it to make cheap digs. We are not that dump. Thank god for Trump.
Chris Sundo
Chris Sundo Apr 15, 2020 7:01PM ET
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Time is ticking friends. Don't you have better things to do than getting confused over who said what and who misinterpreted what and who dreamed up what to put an article together? -- I'm taking my own advice. Be good to your mom! Make her some tea and give her a back and foot massage. If you have a bad relationship with your parents do yoga with them at their home. Is easiest way to fix any rship. If you haven't tried that you don't have enough ammo to form an opposing opinion.
Thom Miller
Thom Miller Apr 15, 2020 6:49PM ET
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Watching Donny Boy lose his cool and really come off the rails today. An absolutely disgraceful performance. Yelling at China today, but kissing their b****s 2 months ago.
Ronald Warren
Ronald Warren Apr 15, 2020 6:32PM ET
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Are we in for our weekly, "Unemployment Pump?"
Anthony Crowley
Anthony Crowley Apr 15, 2020 6:26PM ET
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Like it or not the Fed is going to continue to backstop the upper 10% who own over 80% of the market. Those with the gold make the rules.
Don Getty
Don Getty Apr 15, 2020 5:57PM ET
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I think I can, I think I can - is this hill getting longer or am I sinking!
Chris Sundo
Chris Sundo Apr 15, 2020 5:53PM ET
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And the picture under the heading .. A guy without a mask .. HaHa. Picture-perfect for the magazine cover? Bate 'n switch, Trick/Trap/Fool us ..
Dusty Owen
Dusty Owen Apr 15, 2020 5:50PM ET
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Turns out shutting down the world’s economy has a negative impact on the economy, financial experts say.
Pwr Strk
Pwr Strk Apr 15, 2020 5:50PM ET
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lol, three weeks after
Chris Sundo
Chris Sundo Apr 15, 2020 5:50PM ET
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So, what was yesterday? All this persistent grind higher? A FAKE rally based on what? Celebrating the END of Easter? Opening the Earnings season with a Bang?
Malcolm Glennie
Malcolm Glennie Apr 15, 2020 5:26PM ET
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Did anyone really believe this would be a V-shaped recovery? After looking at Wuhan, the deaths, the empty streets?
Chris Sundo
Chris Sundo Apr 15, 2020 5:26PM ET
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I heard from a reliable source that Bernanke had talked about a V-recovery after the trillions bailout package.. Fauci, per news I read today, said the end of February 2020 'not to worry about cv19'. So, really, our so-called experts that ppl have a tendency to rely upon, those experts are dreamers who are out of touch with reality or trying actively and premeditatively to pull the wool over the public's eyes and are thus neither worth listening to nor worth relying on. A very very sad state of affairs if you can no longer rely on the leadership team in a state of crisis. Remember how so-called experts and 'epidemiologists' came on camera stating WEARING MASKS AND GLOVES IS USELESS? REMEMBER THAT? I remember 2 such officials. If the truth comes out 30 days later that wearing masks and gloves is of protective benefit to preserve a life then ... -- I'm not experienced enough in the market to tell whether at this time it is the right place to make ANY long-term investments.
Lysander Kutsara
Lysander Kutsara Apr 15, 2020 5:09PM ET
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Absurd article, analyzing a market based on a false premise, as if we're all shocked and appalled by the economic data and rational people actually believed there will be a "V-Shaped recovery".   Amateurish "journalism".
Eric Hudnall
Eric Hudnall Apr 15, 2020 5:07PM ET
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And you financial wizards needed an earnings report to figure this out. How is today any different from yesterday, or tomorrow? Day trader's got a longer perspective than some of guys.
Mac Marcus
Mac Marcus Apr 15, 2020 5:06PM ET
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He's buying the state house again,what do you think?
Arvind Ganotra
Arvind Ganotra Apr 15, 2020 4:53PM ET
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He is doing his best to ensure that next president can't fix it
Chris Sundo
Chris Sundo Apr 15, 2020 4:53PM ET
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LOL
devendra singh
devendra singh Apr 15, 2020 4:36PM ET
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Trump is optimistic man & away from ground reality...going to inter big disaster
Ivan Couto Jr
Ivan Couto Jr Apr 15, 2020 4:26PM ET
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Jerome Powell confirmed US economy is strong and media should stop with fake news
Samsama Kingwangjjang
Samsama Kingwangjjang Apr 15, 2020 4:26PM ET
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No one is strong at this moment
Nathan Bokan
Nathan Bokan Apr 15, 2020 4:26PM ET
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Yeah right stop lying
Gas Attackkkk
Gas Attackkkk Apr 15, 2020 4:26PM ET
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Fake news🤨? Yeah keep dreaming Trump. 🤣🤣🤣🤣🤣🤣🤣🤣
Ivan Couto Jr
Ivan Couto Jr Apr 15, 2020 4:26PM ET
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I am being sarcastic
 
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