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US stocks plummeted as worries about slowing global growth outweighed the optimism generated by a reading of domestic trade suggesting a smaller deficit early in the year.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) lost 1.03%, or 29.8 points, at 11:49 am. The Dow (DJI) lost 0.85%, or 218.2 points, while the Nasdaq (^ IXIC) lost 1.36%, or 104.2 points. "data-reactid =" 16 "> The S & P 500 (^ GSPC) lost 1.03%, or 29.8 points, at 11:49 (ET) The Dow (^ DJI) lost 0.85%, or 218.2 points, while the Nasdaq (^ IXIC) lost 1.36%, or 104.2 points.
Over the course of the night, domestic equities saw a sharp drop in major European stock market indices after European Central Bank President Mario Draghi presented a bleak description of the eurozone economy. He acknowledged that the "weak global trade" continued to have a negative impact on the manufacturing sector and that the "slowdown in growth" weighed on the central bank's inflation outlook. Earlier this month, the ECB revised down its GDP forecast for 2019 for the euro area by 1.1%, compared with 1.7% previously.
However, on Wednesday, Draghi failed to link the current slowdown in the eurozone to the prospect of a major economic slowdown.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We are now witnessing a more persistent deterioration of external demand ", said Draghi in & nbsp;prepared remarks& nbsp; during a speech in Germany. "But a" soft patch "does not predict a serious recession." "Data-reactid =" 19 ">" We are now witnessing a more persistent deterioration in external demand, "said Mr Draghi during a speech prepared during a speech in Germany." But a "soft patch" does not necessarily mean a serious crisis. "
Mr Draghi also said the ECB would monitor the effects of the central bank's current negative interest rate policy, with the euro zone's policy rate currently set at 0.4%. "We need to think about measures that will preserve the positive implications of negative rates on the economy, while mitigating the side effects," he said, adding that the decline in bank profits in the region is likely Was not an "inevitable consequence" of low interest rates.
The ECB is reaching out to central banks around the world – including the US Federal Reserve – who have recently adopted a more accommodating monetary policy in the face of slowing growth.
Meanwhile, new evidence of a sluggish global economy continues to circulate.
European Central Bank President Mario Draghi arrives at the Eurogroup Finance Ministers' Meeting at the European Council Headquarters in Brussels on Monday 11 February 2019. (AP Photo / Francisco Seco)
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On Wednesday, new data showed & nbsp;profit of Chinese industrial enterprises& nbsp; has dropped more and more than 7 years. The profits of Chinese industrial enterprises fell by 14% from one year to the next for the period from January to February, according to the National Bureau of Statistics. This is the largest decline since the end of 2011, according to & nbsp;Reuters data, with falling prices in the automotive, petroleum processing, steel and steel industries and the chemicals that cause the decline. "data-reactid =" 34 "> On Wednesday, new data showed that profits of Chinese industrial enterprises had dropped to a maximum in more than seven years, according to the National Bureau of Statistics, profits fell by 14% year-over-year for the period from January to February, the sharpest drop since the end of 2011, according to Reuters data, with lower prices in the automotive, oil processing, of steel and paper, chemical industries causing the decline.
Economic data on the domestic market fluctuated at the beginning of the year. Investors were surprised by contrasting data on the labor market, the manufacturing sector, retail sales and consumer confidence. This contributed in part to the Federal Reserve's decision to end its tighter monetary policy campaign at its last meeting.
US Treasury yields fell on the curve on Wednesday, as the 10-year note yield fell 4 points to 2.372%. This yield is lower than the return on the 3-month bill, down less than 1 basis point to 2.46%.
Economy
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mortgage applications increased by 8.9% for the week ending March 22 The Mortgage Bankers Association (MBA) released its weekly seasonally adjusted results. The previous week, mortgage applications had only increased by 1.6%. Purchases rose 6.4% for the week ending March 22, compared with 0.3% previously, while refinancings increased 12.4%, following a 3.5% increase for the previous week. "Data-reactid =" 38 ">Mortgage applications increased by 8.9% for the week ending March 22 The Mortgage Bankers Association (MBA) released its weekly seasonally adjusted results. The previous week, mortgage applications had only increased by 1.6%. Purchases rose 6.4% for the week ending March 22, compared with 0.3% previously, while refinancings increased 12.4%, following a 3.5% increase for the previous week.
An "unexpected drop in mortgage rates following last week's FOMC meeting" has contributed to the surge in purchase and refinancing demands, said Joel Kan, Associate Vice President of Forecasting. Economic and Industrial MBA.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "US trade deficit for goods and services fell in January at $ 51.1 billion, the & nbsp;Office of Economic Analysis& nbsp; announced Wednesday. According to Bloomberg, this gap was lower than the $ 57 billion deficit forecast for the month. The December trade deficit was revised upward by $ 100 million to $ 59.9 billion. "Data-reactid =" 40 ">US trade deficit for goods and services fell in January to 51.1 billion dollars, announced Wednesday the Bureau of Economic Analysis. According to Bloomberg, this gap was lower than the $ 57 billion deficit forecast for the month. The December trade deficit was revised upward by $ 100 million to $ 59.9 billion.
Exports of goods increased by $ 1.8 billion to $ 137.4 billion in January, mainly because of the $ 0.9 billion increase in soybean exports and $ 0.7 billion in passenger car exports.
Imports fell $ 6.5 billion to $ 210.7 billion for the month. Imports of industrial supplies and materials decreased by $ 2.3 billion, while crude oil imports decreased by $ 1.4 billion, while imports of capital goods decreased by 3 billion dollars. billion, while imports of computer accessories, semiconductors and civil aircraft fell for the month.
stocks
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Southwest Airlines (LUV) Wednesday cut its forecasts following cancellations of flights resulting from the grounding of the Boeing 737 Max 8 (for current quarter sales) (BA). & nbsp;The company said& nbsp; it expects about 9,400 flight cancellations between mid-February and March 31, including 2,800 as a result of the grounding of the 737 Max. The company now estimates that seat-office growth available in the first quarter of 2019 – a closely monitored indicator of airline sales potential – is 1%, compared with earlier forecasts of between 3.5% and 4%. . Southwest also said it expects an increase in unit costs of 10% over the previous forecast of 6%. "Data-reactid =" 48 ">Southwest Airlines (LUV) Wednesday cut its forecasts for current quarter sales due to flight cancellations as a result of the worldwide flight of the Boeing 737 Max 8 (BA). The company said it expects about 9,400 cancellations of flights between mid-February and March 31, including 2,800 following the grounding of the 737 Max. The company now estimates that seat-office growth available in the first quarter of 2019 – a closely monitored indicator of airline sales potential – is 1%, compared with earlier forecasts of between 3.5% and 4%. . Southwest also said it expects an increase in unit costs of 10% from one year to the next, higher than the previous forecast of 6%.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Centene (CNC) agreed to buy managed WellCare Health Plans for Health Care Providers (WCG) in a transaction valued at more than $ 15 billion. The agreement, which is expected to be completed in the first half of 2020, will help Centene strengthen its government-backed healthcare business, which is currently focused on Medicaid and Obamacare coverage, but will soon benefit from the Medicare platform. from WellCare. Centene offered $ 305.39 per share in cash and shares for WellCare, which represents a premium of approximately 32% over the closing market price of WellCare on Tuesday. "Data-reactid =" 49 ">Centene (CNC) agreed to buy managed WellCare Health Plans (WCG) of the health care provider as part of a transaction valued at more than $ 15 billion. The agreement, which is expected to be completed in the first half of 2020, will help Centene strengthen its government-backed healthcare business, which is currently focused on Medicaid and Obamacare coverage, but will soon benefit from the Medicare platform. from WellCare. Centene offered $ 305.39 per share in cash and shares for WellCare, representing a premium of approximately 32% over WellCare's closing market closing price on Tuesday.
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 64 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Boeing 737 Max "strandings" US economic data: Wells Fargo"data-reactid =" 68 "> Boeing 737 Maximum Stress" Pressure "US Economic Data: Wells Fargo
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Beer sales are lukewarm and the pot could be part of the problem"data-reactid =" 69 "> Beer sales are lukewarm and the pot could be part of the problem
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Risks of recession remain low as fear escalates: report"data-reactid =" 70 "> Risks of recession remain mitigated, fear deepening: report
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