On Monday anxiety increased after Saudi Arabia slashed crude prices over the weekend, abandoning its attempts to support the oil market. At the open, markets sold off so intensely that NYSE circuit breakers tripped for the first time in 23 years, halting trading for 15 minutes. After trading resumed, selling continued and by the end of the day, the Dow Industrials sank 2013 points, or 7.8%, the S&P 500 lost 7.6%, and the Nasdaq Composite fell 7.3%. Banks and energy stocks were hit especially hard. Ten year Treasuries sank 21 basis points to a record low yield of .55%, gold futures rose slightly to $1,676 an ounce, and West Texas Intermediate crude fell 25% to $30.96 a barrel.
On Tuesday markets roared back as President Trump floated the idea of temporarily cutting or eliminating payroll taxes and providing special assistance to businesses affected by the coronavirus. The Dow Industrials closed up 1,267 points, or 4.9% with similar percentage gains in the S&P 500 and Nasdaq Composite. Ten year Treasuries finished the day yielding .75%, and West Texas Intermediate crude surged 11% to $34.85 a barrel.
On Wednesday the consumer price index for February rose .1%, and the EIA petroleum status report for the week ending March 6th saw crude oil inventory rise 7.7 million barrels. None of that mattered though, with coronavirus fears pummeling markets after the World Health Organization declared a global pandemic. The Dow Industrials sank 1,464 points, or 5.9%, to finish more than 20% below its record close last month, and officially putting the index in bear market territory. The S&P 500 and Nasdaq Composite had similar loses, however, didn’t quite cross into bear market territory. Ten Year Treasuries finished the day yielding .82%, and West Texas Intermediate crude fell to just above $33 a barrel.
On Thursday jobless claims for the week ending March 7th fell 4,000 to 211,000 and the producer price index for February declined .6%. The Federal Reserve announced it will increase its overnight funding operations by $1.5 trillion in an attempt to help bring stability to markets and President Trump announced a 30-day ban on most travel from Europe to the United States. The Dow Industrials closed 2,352 points lower, or 10%, its worst percentage drop since the 22% crash know as Black Monday back in October of 1987. Ten year Treasuries sold off as well ending the day yielding .85%, oil fell to just below $31 a barrel, and gold also fell to $1,578 an ounce.
On Friday import prices for February declined .5% while export prices declined 1.1% and consumer sentiment for March declined 5.1 points to 101. Markets surged at the open on optimism of heavy government stimulus, but high volatility continued with the Dow Industrials opening up more than 1,300 points, but then selling off several hundred points. Now let’s take a look at some stocks.
Stitch Fix, Inc. (NASDAQ: SFIX) announced its financial results for the second quarter declaring a net income of $11.4 million, or earnings of $0.11 per diluted share. Net revenue increased 22% on a year-over-year basis, to $451.8 million and adjusted EBITDA was $14.3 million. Shares of Stitch Fix fell over 25% on Tuesday, post announcement.
Cloudera, Inc. (NYSE: CLDR) announced fourth quarter and fiscal year 2020 financial results. Revenue for the fourth quarter amounted to $211.7 million as subscription revenue reached $182 million. Recurring revenue on an annual scale grew 11% year over year.
Dollar General Corporation (NYSE: DG) announced financial results and for the fourth quarter, net sales increased 7.6% and full year net sales rose by 8.3%. Operating profit for the fourth quarter reached $720.9 million, increasing by 12.9%. The company repurchased common shares amounting to $1.2 billion. Shares of Dollar General fell over 10% on Thursday, reaching a low of $140.15.
Slack Technologies, Inc. (NYSE: WORK) announced on Thursday, financial results with fourth quarter total revenue amounting to $181.9 million, a 49% increase year over year. Gross profits reached 86.6%, or $157.5 million. Shares of Slack fell over 18% after hours, Thursday.
Zuora, Inc. (NYSE: ZUO) reported results late Thursday with fourth quarter total revenue reaching $70.4 million, an 11% increase year over year. Subscription revenue amounted to $54.6 million, a 21% increase year over year. Shares of Zuora fell over 19% after-hours Thursday, post announcement.