Stocks sink as Texas rolls back reopening amid virus spike

Stocks sink as Texas rolls back reopening amid virus spike

Story will be updated as new information can be verified.

Wall Street's major indexes dropped on Friday as the United States set a new record for a one-day increase in coronavirus cases and bank stocks fell following the Federal Reserve's move to cap shareholder payouts.

The Standard & Poor's 500 index skidded 2.6%, shedding its gains for the week and leaving it almost in the red for the month. Investors are weighing the risks that rising coronavirus cases could pose to hopes for an economic recovery.

In coronavirus headlines, Florida reported more than 5,000 new cases, while Arizona's cases jumped 5.1% - topping a seven-day average of 2.3% - and Texas governor Greg Abbott announced the state would halt its reopening plans as a result of the recent spike in cases and hospitalisations.

Shares of US airlines, resorts and cruise operators slumped as travel was hit hard by lockdowns.

The Dow Jones Industrial Average rose 33 points, or 0.1%, to 25,478. The Nasdaq, which hit an all-time high earlier this week, gained 1.1%, to 10,017. But it's still on pace for its best quarter since the fourth quarter of 1998. Markets have been rallying recently on hopes that USA states and regions around the world could continue to lift lockdowns put in place to slow the spread of the coronavirus.

'The market has been optimistic that the economy is re-opening and that life would get somewhat back to normal, but the virus may have other ideas'.

Colin Kaepernick Reportedly Has 'Multiple' NFL Teams Interested In Signing QB
Kaepernick, 31, has "some legitimate interest from at least a couple of teams", NFL Network reporter Mike Silver said. However, if multiple teams really do want to sign him, there is a solid chance we see him in a jersey by September.

But investors remained nervous throughout the day as the number of new virus cases in U.S. states grew, especially in the country's west and south. That's led traders to bid up stocks in technology companies that offer services online, a thriving conduit of commerce through the outbreak.

Large banks such as JPMorgan Chase and Wells Fargo fell more than three per cent as the Fed late yesterday ordered the industry to suspend buybacks and limit dividend payments in the wake of uncertainty over the coronavirus.

The moves in early trade came after the Federal Reserve's yearly stress test of major USA banks revealed that several banks were likely to get close to their minimum capital requirements as a result of the coronavirus pandemic, meaning the banks would be forced to suspend share repurchase programs and keep dividend payments at current levels throughout the third quarter. Shares in Verizon were down 2.3%.

Nike dropped 4.3 per cent as the footwear maker posted reported a surprise quarterly loss hurt by store closures due to the pandemic. Delta Air Lines slid 7.8%. Bond yields were mixed.

Concern that a pullback in the reopening of businesses could hamper demand for energy helped pull down oil prices Friday.

In energy trading, benchmark USA crude oil fell 23 cents to $37.78 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the global standard, fell 5.4% to close at $40.31 a barrel.

The bank index had fallen 19 per cent from its recent high on June 5 to Wednesday's lowest point.

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