Stock futures sink deep into the red as oil prices plummet and coronavirus fears spread
Source: Washington Post
Stock futures sank deep into the red Sunday, with the Dow expected to open as much as 1,000 points down Monday morning, as a new oil war sparked by the coronavirus outbreak sent prices plummeting.
The price of West Texas Intermediate crude, largely used in the United States, fell from about $41 to $32 a barrel Sunday night, a low not seen in four years. By Sunday evening, it had fallen an additional 25 percent. While the tumble should lower prices at the pump for consumers, it is terrible news for stock markets, as well as oil companies and their massive workforces, which could see hard times ahead.
Asian markets plunged on the news, with Japanese stocks falling 3 percent when they opened Sunday night. Australias market declined 5 percent at the open.
″$20 (a barrel) oil in 2020 is coming, Ali Khedery, a former U.S. official in Iraq and onetime Middle East expert with Exxon, wrote on Twitter.
Read more: https://www.washingtonpost.com/business/2020/03/08/saudi-arabia-flooding-market-with-oil-prompting-predictions-further-decline-monday/
machoneman
(4,014 posts)Dopers_Greed
(2,640 posts)I bet the orange turd is freaking out now
BadGimp
(4,021 posts)BidenBacker
(1,089 posts)I got my elderly father into some gold stock late last week. Maybe he can make a few bucks off those while he's losing his ass on his other equities.
Republicans: "Yeah, we all know that Trump is an uncouth asshole and a total imbecile...but our 401Ks are up!"
Hey Goppers, how's that workin' out for ya???
https://money.cnn.com/data/premarket/index.html
Down 1255 now...almost 5%. No doubt all Biden's fault.
left-of-center2012
(34,195 posts)I'm betting Donnie blames Obama
BidenBacker
(1,089 posts)Fuhrer Drumpf will blame somebody else and take zero responsibility for anything.
This is some real serious shit...our deficit is already at around $1.5 trillion thanks to the GOP's reckless spending so a TARP-like program will only make it much worse. The Fed can't cut rates much more unless they start giving money away. Besides, a rate cut doesn't do shit when coronavirus will cause a supply shock and not a demand issue.
We don't have many levers left to move and dials to turn. Plus we got Munchkin and Krudlow as our economic "experts"...these guys have no clue except "keep buying on the dips!"
We're effing doomed.
James48
(4,443 posts)I havent seen trading suspended since the days of the 2008 crash.
Here we go!
BidenBacker
(1,089 posts)at 5% down?
maddogesq
(1,245 posts)SiliconValley_Dem
(1,656 posts)Last time after hours trading went down was night of election...but stocks later went up.
The current environment does not support a similar rebound. I see a multi day slide
ashredux
(2,609 posts)Dumb luck
BidenBacker
(1,089 posts)I bought a bunch of S&P put options back in 2006 when I was convinced that the market was gonna plunge. If my timing had only been a little better think I woulda cleared around $300K on an 8 or 10 grand bet. Sometimes it sucks to be too far ahead of the curve!
I always thought Trump would crash the markets...I'm surprised it's held up as long as it has.
Congrats on your trade...you done real good and we know who's buying the rounds tomorrow on DU.
ashredux
(2,609 posts)BidenBacker
(1,089 posts)then you don't have any clock ticking like I did with expiration dates on options.
You gonna do good tomorrow from the looks of things...if it were me I'd sell a little back and let the rest ride because it ain't looking good for the long term.
Best of luck whatever you do.
left-of-center2012
(34,195 posts)Oil markets crashed more than 30% after the disintegration of the OPEC+ alliance triggered an all-out price war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences.
Brent futures suffered the second-largest decline on record in the opening seconds of trading in Asia, behind only the plunge during the Gulf War in 1991. As the global oil benchmark plummeted to as low as $31.02 a barrel, Goldman Sachs Group Inc. warned prices could drop to near $20 a barrel.
Hammered by withering demand due to the coronavirus, the oil market is sinking deeper into chaos on the prospect of a supply free-for-all. Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and signaled to buyers it would ramp up output -- an unambiguous declaration of intent to flood the market with crude. Russia said its companies were free to pump as much as they could.
The cataclysmic collapse will resonate through the energy industry, from giants like Exxon Mobil Corp. to smaller shale drillers in West Texas. It will hit the budgets of oil-dependent nations from Iraq to Nigeria and could also reshape global politics, eroding the influence of countries like Saudi Arabia. The fight against climate change may suffer a setback as fossil fuels become more competitive versus renewable energy.
https://www.bloomberg.com/news/articles/2020-03-08/oil-in-freefall-after-saudis-slash-prices-in-all-out-crude-war?srnd=premium
BidenBacker
(1,089 posts)Yet another GOP tax cut for the rich and corporations should clear all that right up.
BidenBacker
(1,089 posts)GETPLANING
(846 posts)Boy, was I wrong
BidenBacker
(1,089 posts)DJIA futures down so much they turned green again...LOL.
Either CNBC needs to work on their software a little or Krudlow hacked into their website and is trying to prop it up.
Hey, Larry...just keep buying on the dips, bro!
IronLionZion
(45,563 posts)Freepers claimed Obama was killing oil jobs in states like North Dakota and Montana out of spite. Trump openly campaigned on creating lots of jobs in fracking and shale since Hillary hates American workers so much.
Interesting to see who they blame this on since it's obviously Saudi Arabia but Trump won't be able to admit it.
Analysts fear the move is the beginning of a price war between the Saudis and Russia which will squeeze American shale oil producers as prices are heading sharply downward.
The dealmaker in chief is winning so bigly at everything these days. Maybe this is Joe Biden's fault this time.
BidenBacker
(1,089 posts)that airlines will save a bundle on jet fuel with oil tanking so bad.
Of course, the bad news is that everybody is now afraid to get on their planes these days.
IronLionZion
(45,563 posts)and store it for future use. Southwest has done this before.
BidenBacker
(1,089 posts)Putin is losing his ass.
About the only 2 things that Russia produces is oil and pro-Trump propaganda.
BidenBacker
(1,089 posts)Will probably be over $2000 an ounce by the time we finally get the Idiot-in-Chief outta there.
I figure every 1000 point drop in the Dow is another 1 million votes for Biden come November. Maybe more.
BidenBacker
(1,089 posts)Need one of them thought bubbles above it...
"Why in the world did I ever get that fucking moron Trump elected? Even Hillary woulda been better than that assclown."
GusBob
(7,286 posts)Live by the grease die by it
More bad news for Donnie...after we toss his sorry ass outta office he'll probably go bankrupt again without all that Russian oligarch oil money to launder.
And yet more bad news...
https://www.financial-planning.com/opinion/stock-market-performance-after-3-years-donald-trump-and-barack-obama
And this is from late January when the market was near its all-time high. That orange line is quite a bit lower now than it was then.
That orange line oughta give orange face a big wedgie...he hates losing to Obama.
gab13by13
(21,440 posts)will contribute to Trump's reelection? Probably yes.
ribrepin
(1,726 posts)that is used to finance loans. The market is now lower than when we pulled it out. We earned a little over $2000.00 for about 10 months. I guess we could be affected if the economy really caters. Really happy with our decision. We didn't trust shitgoblin. We are retired and aren't part of elite so we wouldn't know when to run.
dalton99a
(81,637 posts)NBachers
(17,149 posts)Then, with the Democrats in power the puke fascists can blame it all on the Democrats, again.
BidenBacker
(1,089 posts)When I was participating a lot in WaPo's political forums back in the 2000s I came across a blog called Perrspectives. I'm not much into blogs but I liked this guy's. He wrote a great article back in the middle of the 2008-2009 financial crisis that always stuck with me and which you might enjoy reading...
Democrats. Saving American Capitalism Since 1933.
http://www.perrspectives.com/blog/archives/001448.htm
Like you, I have a gut feeling it's starting to happen all over again. Democrats always get stuck with having to clean up Republican shit...while all Goppers do is crap all over the place. Hope Joe brings some Latex gloves and a big mop to his Inauguration because he may very well need them.
How's that old saying go? "If you wanna live like a Republican then vote Democratic."
beachbumbob
(9,263 posts)in action. Another feature to the investor class from taking a huge hit at once. Tomorrow would most likely be a repeat.