“Mystery Crash” sends stocks lower

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Stock Market Update Thursday, February 20th, 2020

Stocks slide…but it could have been worse!

The major indices opened lower then rallied. And a little more than an hour into the session the major indices were positive.

But then out of nowhere stocks tanked.

Between 10:45am and 11:45am ET the major indices dropped more than 1.3%. But what was really strange is there wasn’t a catalyst or much of an explanation for the drop.

After the 1-hour slide, stocks bounced back. And by the close the major indices had erased a large part of the morning losses.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.4% loss. Down 13 points, the S&P ended at 3,373.
  • The DOW ended lower by 0.4%. Dropping 128 points the DOW closed at 29,220.
  • The NASDAQ was down 0.7%. With a 67 point loss, the NASDAQ finished at 9,751.

Crude Oil (CL) finished higher for the 2nd day in a row. Up 0.8%, Crude Oil finished the day at $53.91 a barrel.

Morgan Stanley (MS) joined the “broker wars” today with a deal to buy E-Trade (ETFC) for $13 billion. Morgan Stanley finished the day with a 4.6% loss while E-Trade jumped 21.8%.

Gold (GC) hit a 7-year high today with a 0.6% gain. Gold has finished higher for 3 days straight.

According to the International Air Transport Association (IATA), air travel is set to decline for the first time since 2009.  The drop comes because of coronavirus concerns and suspended flight service to China.

The IATA said the cost to China airlines could be $12.89 billion in lost revenue. Before the outbreak a 4.1% increase in travel in 2020 was predicted.

The news didn’t have much of an impact on domestic airlines.

American Airlines (AAL) and United Airlines (UAL) finished higher by 0.6%.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.


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