Stocks traded sharply lower yesterday, their worst day since 2008, as fears about the spread of the coronavirus and an oil price war sent investors scrambling out of stocks. Early in the day yesterday stocks were down 7% triggering a circuit breaker which halted stocks from trading for 15 minutes.
Most U.S. manufacturers said business began to slow to a crawl in February as supply bottlenecks tied to the coronavirus impaired their ability to get parts. The Institute for Supply Management said its manufacturing index dipped to 50.1% last month from 50.9%. Few manufacturing companies are adding new jobs as the manufacturing employment gauge was negative for the seventh straight month. One executive in the transportation industry even said “layoffs are here.”
President Donald Trump said he will be meeting with Senate and House Republicans today to discuss “a possible tax relief measure” that would provide “a timely and effective response to the coronavirus.”. Payroll taxes put more money into the pocketbook of workers but some economists have questioned whether typical stimulus measures will work during the coronavirus crisis, when many may stay at home. That means, even with more money, Americans may not be spending it at restaurants or the movies. Trump also said the group will be discussing getting hourly wage earners help, “so they can be in a position where they’re not going to miss a paycheck.”
with Northwest Quadrant Wealth Management, I’m Tyler Simones.