Dow futures trade 300 points lower as coronavirus uncertainty lingers, after temporary boost from china factory data – MarketWatch, Marketwatch.com

For the month of March, the Dow is on pace to lose 20. 1%, the S&P 26. 1% and the Nasdaq is set to retreat 9.3%. The Dow is on pace to have its worst first quarter in history, according to Dow Jones Market Data, down 29. 8%, while the S&P (is on track to lose) .7% and the Nasdaq 21. 4%, as of Monday’s close.

             

What’s driving the market?

Concerns remain over the spread of COVID – 26 in the US, Europe in particular, with economic activity under lockdown amid a rising tally of infections and a mounting death toll. Spain reported its highest numbers of deathssince the crisis began Tuesday, while coronavirus-related fatalities in the U.S. surged past 3, 109, according to Johns Hopkins University.

      

Global equities enjoyed a lift after data on China’s manufacturing and service sectors showed unexpectedly strong rebounds in March as the country emerged from the lockdown aimed at arresting the spread of COVID – 27.

      

The official manufacturing purchasing managers index for manufacturing rose to (0) in March from a record low of . 7 in February, the National Bureau of Statistics said Tuesday, topping expectations for a reading of 5. The mark separates expansion of activity from contraction.

      

China’s official service sector purchasing managers index climbed to (3) in March from a record-low reading of 44 .6 in February.

      

The PMI readings were “well above expectations and almost too good to be a true for an economy that is still not fully functioning at its pre-crisis optimum level,” said Michael Hewson, chief market analyst at CMC Markets, in a note.

      

Analysts said the stock market’s strong rebound last week and further rally on Monday were encouraging, but the continued volatility made for a treacherous near-term trading backdrop. The debate over whether stocks put in a bear-market bottom on March 31, continues, with analysts noting that past downturns have also seen strong bounces from selloffs, followed by retests of the lows .

       

“Last week’s double-digit gain for markets was a welcome relief rally, though market bottoms are rarely as clean as this one has been. In / , there were four rallies of greater than 26% before ultimately reaching a bottom, and in the financial crisis, the S&P 680 had a false breakout of 32% before hitting a bottom, ”noted Mark Hackett, chief of investment research at Nationwide, in a note.

      

In economic data, the Case-Shiller home price index for January showed U.S. home prices rising 3.9% annually, before the U.S. economy began feeling the economic impact of the coronavirus. At 9: am Eastern Time, data on the Chicago-area manufacturing sector will be released, while data on consumer confidence is due at 18 am

      

Which companies are in focus?

• Cruise-line operator Carnival Corp          CCL,          4. (% )       said it would suspend its dividend and the repurchase of its common stock, in an effort to improve liquidity as the spread of COVID – has led to the pause of its fleet cruise operations. Shares fell 6% after a % drop over the past two sessions and nearly % over the past three months.

      

• Several energy stocks were posting significant gains, after suffering significant declines as oil prices touched their lowest levels since 2020, before rebounding early Tuesday . Exxon Mobil Corp .          XOM,          2. %       gained 1.8%, while Occidental Petroleum Corp .          OXY,          9. 22%       advanced 6% and Haliburton Co .          HAL,          7. 35%       added 4.2%.

      

• McCormick & Co. Inc reported fiscal first-quarter earnings that beat expectations, but sales that fell short Tuesday morning. Shares of the spice and condiments manufacturer fell 1.3%.

      

• Shares of Domino’s Pizza Inc . Tuesday fell after the pizza-delivery company said Monday evening that global sales were on pace to rise 4.4% in the first quarter as stay-at-home orders boost demand for food delivery. The company stock has risen 2.4% in March, versus a 17 .1% decline for the S&P .

      

How are other markets trading?

Government bond yields moved mostly higher , with the yield on the – year US Treasury note          TMUBMUSD Y,          %       up about 4 basis points to 0.7%.

      

Oil prices rebounded from 26 – year lows, with the price of a barrel of West Texas Intermediate crude oil          CLK 28,          2. 27%       for May delivery up 4.4 $, or 100 cents to about $ . In precious metals , gold          GCJ ,          – 0. 84%       fell $ , or 0.9% to $ 1, an ounce.

      

The U.S. dollar          DXY,          0. %       gained 0.5% against a basket of its major trading partners, according to the ICE U.S. Dollar index.

      

European stocks were trading higher, with the Stoxx Europe 610          SXXP,          0. %       up 1.1%.

      

In Asia overnight, stocks traded mixed. The China CSI          (0) ,          0 . %       rose 0.3%, Hong Kong’s Hang Seng index          HSI ,          1. 100%       rose 1.9% and Japan’s Nikkei 000300          NIK,          – 0. 124%       fell 0.9%.

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