* S&P 500 up less than 2% as gains shrink
* Financials, tech lead sectors; energy, utilities negative
* Gold, U.S. crude down; 10-yr T-note yield ~0.88%
NEW YORK, March 13 (Reuters) - Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Caroline Valetkevitch. Reach her on Messenger to share your thoughts on market moves: caroline.valetkevitch.thomsonreuters.com@reuters.net
STOCKS CUT GAINS AS VIRUS WORRIES ESCALATE (1220 EDT/1620 GMT)
The S&P 500 was last up less than 2% in midday trading Friday after indexes sharply pared gains as coronavirus worries escalated following a report said President Donald Trump will declare a national emergency over the pandemic.
A Bloomberg report, citing sources, said Trump will declare a national emergency over the fast-spreading coronavirus, opening the door to providing more federal aid to fight the disease.
The S&P 500 was up more than 5% earlier in the session, rebounding from Wall Street's biggest daily drop since 1987 as optimism for a U.S. stimulus package helped to calm investor jitters over the impact of the coronavirus pandemic.
The Dow and S&P 500 on Thursday registered their biggest daily percentage drops since "Black Monday" in 1987, while the S&P 500 confirmed its first bear market since the financial crisis. The Nasdaq confirmed a bear market as well. .N
U.S. Democrats and Republicans signalled they could soon agree on support measures. is the midday market snapshot:
(Caroline Valetkevitch)
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INDIVIDUAL INVESTORS SOUR ON THE MARKET (1146 EDT/1546 GMT)
Pessimism over the direction of stock prices over the next 6 months jumped to its highest level since April 11, 2013. This is according to the latest American Association of Individual Investors (AAII) Sentiment Survey.
AAII reported that bearish sentiment soared 11.7 percentage points to 51.3%. Pessimism was last higher on April 11, 2013 when it hit 54.5%. The large increase keeps bearish sentiment above its historical average of 30.5% for the fifth time in seven weeks.
Bullish sentiment plunged 9.0 percentage points to 29.7%. The drop more than reversed last week's rise and put optimism at its lowest level since Oct. 9, 2019 when it fell to 20.3%. The historical average is 38.0%.
Neutral sentiment dipped by 2.7 percentage points to 19.0%. Neutral sentiment was last lower on December 26, 2018 (18.2%). This week's fall keeps neutral sentiment below its historical average of 31.5% for the eighth time in nine weeks.
AAII noted that pessimism is at an unusually high level. However, they added that, historically, this has had a weaker association with above-average returns for the S&P 500 index over the following six- and 12-month periods than unusually low levels of optimism.
Additionally, AAII also noted that neutral sentiment is at an unusually low level. They said that, historically, such readings have been followed by below-average and below-median returns for the S&P 500 over the following six- and 12-month periods.
According to AAII, the big jump in pessimism is a reflection of the market's downside volatility, the coronavirus pandemic and the oil price cut announced by Saudi Arabia.
With these changes the bull-bear spread plunged to -21.57 from -0.9 last week this week's special question, AAII asked its members AAII Investor Sentiment Survey what they thought of the Fed's decision to cut rates. Half of respondents said that it was a mistake because it depletes "future Fed ammunition," if, and when, the market falls further.
(Terence Gabriel)
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STOCKS RALLY AFTER BIGGEST ROUT SINCE 1987 (1015 EDT/1415 GMT)
The S&P 500 was rallying more than 5% on Friday, rebounding from Wall Street's biggest daily drop since 1987 as optimism for a U.S. stimulus package helped to calm investor jitters over the impact of the coronavirus pandemic. The index has since pared some gains but was still last up more than 3%.
The Dow and S&P 500 on Thursday registered their biggest daily percentage drops since "Black Monday" in 1987, while the S&P 500 confirmed its first bear market since the financial crisis. The Nasdaq confirmed a bear market as well. .N
U.S. Democrats and Republicans signalled they could soon agree on support measures. On Thursday, the New York Federal Reserve announced it would introduce $1.5 trillion in new repo operations this week. Australia also pumped liquidity into its financial systems.
Cruise liners bounced on Friday after a brutal sell-off this week, with Carnival (NYSE:CCL) Corp CCL.N up more than 8%.
Here is the morning market snapshot:
(Caroline Valetkevitch)
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DOW INDUSTRIALS: DUE FOR BIG BOUNCE, BUT STILL DOWN FOR THE COUNT? (0915 EDT/1415 GMT)
Since peaking in February just shy of 30k, it's been an especially rough ride for the Dow industrials .DJI . Thursday's close, the blue-chip average has lost over 28% of its value in just 20 trading days. This as the market has suffered its fastest fall from record highs into bear-market territory ever.
That said, given the speed and extent of the swoon, the Dow, and the market, are ripe for upward reactions at any time. This after both the NYSE .AD.N and Nasdaq .AD.O registered a record number of new lows on Thursday. Meanwhile, the Dow's weekly RSI ended Thursday at its most oversold since early October 2008. (Click on chart below)
Indeed, CBT E-Mini Dow Futures 1YMcv1 are suggesting a snapback of around 5% early in the regular session, while the SPDR Dow Jones Industrial Average ETF DIA.P is saying about 6%. Even so, the DJI will have more work to do to repair recent damage. For instance, even with the bounce, the index can still threaten its first weekly close below its 200-week moving average, which ended Thursday at about 23,606, since early-October 2010.
Of note, from deeply oversold levels in October 2008, the Dow did snap higher. However, it ultimately fell to lower lows in the weeks and months ahead.
Thus, it remains to be seen whether an initial bounce will signal a major V-bottom reversal, or just a pause in a still-developing bear market.
The next support below Thursday's trough (21,154.46) is at the 38.2% Fibonacci retracement of the 2009-2020 advance (20,744.90). The 50% retracement is at 18,019.26. Gabriel)
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STOCKS LOOK SET TO RALLY AFTER BIGGEST DROP SINCE 1987 (0900 EDT/1300 GMT)
U.S. stock index futures jumped more than 5%, hitting a limit-up in trading, and pointed to a sharply higher opening on Friday as optimism for a U.S. stimulus package helped to calm investor jitters over the impact of the coronavirus pandemic.
The gains come a day after the Dow and S&P 500 registered their biggest daily percentage drops since "Black Monday" in 1987. .N
U.S. Democrats and Republicans signalled they could soon agree on support measures. Australia also pumped liquidity into its financial systems.
Cruise liners were also set to bounce back after a brutal sell-off this week.
Here is your early market snapshot:
(Caroline Valetkevitch)
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https://tmsnrt.rs/2QeI9q1 Dow03132020T
https://tmsnrt.rs/2xAIEUZ Morning US markets snapshot
https://tmsnrt.rs/3cUepbG AAII03132020
https://tmsnrt.rs/3aTmonu US midday stocks snapshot
https://tmsnrt.rs/2TZqALI
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