U.S. stocks dropped Thursday with the S&P 500 and Nasdaq pulling back from Wednesday’s record highs. Coronavirus developments and corporate earnings results remained key focuses for investors.
4:05 p.m. ET: Stocks end lower but pare some losses after intraday selloff
Here’s where the major indices had settled as of 4:05 p.m. ET:
S&P 500 (^GSPC): -0.38% or -12.96 points to 3,373.19
Dow (^DJI): -0.44% or -128.69 points to 29,219.34
Nasdaq (^IXIC): -0.67% or -66.21 points to 9,750.96
Crude oil (CL=F): +0.90% or +0.48 to 53.77 a barrel
Gold (GC=F): +0.66% or +10.70 to 1,622.50 per ounce
3:37 p.m. ET: Sprint, T-Mobile near agreement new merger terms
Telecom giants Sprint (S) and T-Mobile (TMUS) are near agreement on new merger terms, Dow Jones reports. Under the terms, Deutsche Telekom will now own 43% of the combined company. Further details could be announced later Thursday, Dow Jones reports.
11:33 a.m. ET: Stock losses accelerate, Dow drops 300+ points
Losses in the three major indices accelerated as the session rolled on. Each of the S&P 500, Dow and Nasdaq was off more than 1%. Haven assets including gold and Treasuries climbed.
Here were the main moves in markets, as of 9:36 a.m. ET:
S&P 500 (^GSPC): -1.18% or -39.9 points to 3,346.25
Dow (^DJI): -1.13% or -330.72 points to 29,017.31
Nasdaq (^IXIC): -1.6% or -157.13 points to 9,657.82
Crude oil (CL=F): +1.76% or +$0.94 to $54.23 a barrel
Gold (GC=F): +0.75% or +$12.10 to $1,623.90 per ounce
9:36 a.m. ET: Stocks open lower, pulling back from records
U.S. stocks held onto losses from the overnight session, with each of the three major indices opening lower.
Losses in the Dow were led by health-care stocks including Pfizer and UnitedHealth. In the S&P 500, the health-care and communications sectors posted the largest declines.
Here were the main moves in markets, as of 9:36 a.m. ET:
S&P 500 (^GSPC): -0.12% or -4.2 points to 3,381.95
Dow (^DJI): -0.16% or -46.57 points to 29,301.46
Nasdaq (^IXIC): -0.26% or -26.18 points to 9,790.32
Crude oil (CL=F): +1.35% or +$0.72 to $54.01 a barrel
Gold (GC=F): +0.35% or +$5.70 to $1,617.50 per ounce
9:10 a.m. ET: L Brands shares slump after Sycamore Partners says it will acquire Victoria’s Secret brand
Private equity firm Sycamore Partners will take a controlling stake in Victoria’s Secret from parent-company L Brands, according to announcements from both companies Thursdays.
Sycamore is set to pay $525 million for Victoria’s Secret, boosting L Brands’ (LB) reserves to pay down its debt. The company also owns the Bath & Body Works brand, which has outperformed against Victoria’s Secret over the past several years.
The companies also announced that L Brands CEO and founder Les Wexner will step down as CEO and chairman of L Brands, but will remain on the board.
L Brands shares sank more than 11% in early trading following the announcement, likely due to the valuation agreed on for Victoria’s Secret as part of the deal. L brands had a market capitalization near $7 billion as of Wednesday’s close.
8:30 a.m. ET: Philadelphia Fed Business index far exceeds expectations in February
The Philadelphia Fed Business Outlook Survey jumped far more than expected in February, in another sign of resilience for the domestic manufacturing sector even as the coronavirus outbreak continues.
The headline index rose to 36.7 in February, marking the highest level in three years. This was well over the 11.0 reading expected and 17.0 print from January.
Advances were driven by a rise in new orders, with this subindex up 15 points to 33.6, the highest level since May 2018. However, the subindex tracking current employment trends decreased slightly during the month.
The Philadelphia Fed index came just days following a better than expected print on manufacturing activity in the New York region, based on the most recent Empire Manufacturing survey.
7:41 a.m. ET: Norwegian Cruise Line beats 4Q expectations, but warns of impact to 2020 results due to coronavirus
Norwegian Cruise Line (NCLH) posted fourth-quarter results that topped consensus expectations. However, its guidance for the full year missed estimates, with the ongoing coronavirus outbreak expected to take a bite out of the company’s bottom line.
Fourth-quarter adjusted earnings were 73 cents per share on sales of $1.48 billion, beating consensus estimates for adjusted EPS of 70 cents on sales of $1.43 billion, according to Bloomberg-compiled data.
For the full year, Norwegian said it expects adjusted EPS in a range of $5.40 to $5.60, with the midpoint of this range coming in below estimates for $5.54.
“The current known direct impact to operations from COVID-19 is expected to be approximately $0.75 per share and primarily includes customer incentive compensation and 40 cancelled, modified or redeployed Asia voyages across the Company’s three brands,” Norwegian said in a statement. “This includes the close-in redeployment of 21 cancelled Asia voyages on Norwegian Spirit which have been redeployed to the Eastern Mediterranean for summer 2020 with an extremely condensed booking window.”
Norwegian also noted that the coronavirus outbreak “continues to impact consumer travel sentiment regarding travel for cruises in Asia and throughout the company’s areas of operation worldwide.”
7:41 a.m. ET: Morgan Stanley to buy online brokerage E-Trade for $13 billion
Under terms of the agreement, E-Trade stockholders will receive 1.0432 Morgan Stanley shares per E-Trade share, representing a per-share consideration of $58.74, or a near 31% premium over E-Trade’s closing prices Wednesday.
The newly combined companies will have more than $3 trillion in client assets, along with 8.2 million retail client relationships and accounts and 4.6 million stock plan participants, according to Morgan Stanley.
7:40 a.m. ET: Stock futures drift lower in early trading
U.S. stock futures edged lower in early trading, retreating slightly from Wednesday’s record highs for the S&P 500 and Nasdaq.
Coronavirus developments continue to be a focal point for investors, with new deadly infections outside of mainland China including in South Korea, Japan and Iran adding to concerns about the extent of the outbreak. The number of global deaths topped 2,100 among more than 75,000 cases as of Thursday, according to data from the European Center for Disease Prevention and control.
Here were the main moves during the pre-market session, as of 7:40 a.m. ET:
S&P 500 futures (ES=F): 3,380.75, down 6.5 points or 0.19%
Dow futures (YM=F): 29,283.00, down 54 points or 0.18%
Nasdaq futures (NQ=F): 9,711.25, down 22.25 points or 0.23%
Crude oil (CL=F): $53.45 per barrel, up $0.16 or 0.3%
Gold (GC=F): $1,620.20 per ounce, up $8.40 or 0.52%