Texas rolled back its reopening plans as coronavirus cases continue to spike. Stocks sold off hard Friday.
All three major U.S. indices plummeted, with the S&P 500 down 2% and the Dow Jones Industrial Average down 2.5%. The 10-Year Treasury yield fell considerably to 0.64%.
In the morning, risk was sentiment pressured even with a positive retail sales reading. That data is backwards looking, as virus cases continue to climb, positing a three to the current recovery. Daily new coronavirus cases is at a 5-day moving average of 39,000, a record, according to Johns Hopkins data.
Texas, which has seen a huge surge in cases, announced it is closing bars and halting its reopening.
Here are the 5 biggest losers on the Dow Jones Industrial Average as of noon:
Banks were hit with a double-whammy, as the lockdowns situation threatens consumer and business spend and loan demand, but the Federal Reserve also announced banks will cap dividend payments and suspend share buybacks for the third quarter to protect liquidity. Nike was hit hard after missing revenue estimates badly, posting a net loss and offering no guidance, all after the stock had run up in the weeks leading into earnings.