Dow futures down 200, traders search for the bottom

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Traders work during the opening bell at the New York Stock Exchange on February 27, 2020.

Johannes Eisele | AFP | Getty Images

8:28 am: 10-year yield could go to 0.75%, strategist says

The U.S. Treasury 10-year yield could fall further into record-low territory and eventually reach 0.75%, stratetgist Komal Sri-Kumar said. “Usually, when the yield starts to go down, it goes down very fast,” he said on CNBC’s “Squawk Box.” “Now that we are almost at 1% … my next target is 0.75%.” He noted that inflation and economic growth expectations all suggest the benchmark rate will go lower. The 10-year yield hit a record low overnight, breaking below 1.04% for the first time ever. —Imbert

8:09 am: Wall Street anticipating some big Fed rate moves

Markets have no doubt that the Federal Reserve is about to come through with some serious interest rate cuts to combat a slowdown related to the novel coronavirus. Traders have completely priced in a 50 basis point reduction by the central bank’s March meeting, a 75% chance of another 25 basis points in April, and a 70% probability for one more 25 basis point move by September, according to the CME’s FedWatch tracker. That’s not all: The market is assigning a 40% chance for one more move in December that would take the overnight funds rate down to a range of 0.25%-0.5%, and a non-negligible 10% probability of going all the way to zero. On the latter point, JP Morgan economists sees an even bigger likelihood – the firm’s economists think there’s a 1 in 3 chance that the Fed goes to zero by the end of summer. – Cox

8:06 am: Apple shares higher after Oppenheimer upgrade

Shares of Apple rose 1.7% in premarket after Oppenheimer upgraded the tech giant, saying that the company’s products and strong balance sheet should help it withstand any economic uncertainty due to the coronavirus. “We believe Apple products and services will prove more resilient than competitive products in uncertain times,” analyst Andrew Uerkwitz said. The firm also said the company is a “recurring revenue machine” and said the tech giant should be able to withstand any coronavirus fears.— Bloom

8:00 am: ECB says it ‘stands ready’ to step in

The European Central Bank said Monday that the fast-spreading coronavirus added uncertainty to global growth prospects, and it’s willing to intervene to combat any economic impact. “The Governing Council stands ready to adjust all its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner,” ECB Vice President Luis de Guindos said at a speech in Monday. The remarks marked a change in tone from just last Thursday when president Christine Lagarde told the Financial Times that the coronavirus hasn’t reached the point where monetary policymakers need to step in. — Li

7:55 am: Clorox shares rally 1.6% amid sanitizing surge

The maker of household cleaning products rallied in premarket trading Monday morning as the coronavirus continued its spread around the globe and fostered demand for sanitizing wipes, gels and sprays. News of novel cases in metropolitan areas like New York City, in particular, has sparked a boost in production at companies like Clorox, Lysol and Purell-parent Gojo Industries that make hand sanitizers and other ethanol and bleach cleaners, the Wall Street Journal reported on Friday. — Franck

7:45 am: First coronavirus case in New York City

The first coronavirus case in Manhattan has been confirmed, a woman who recently traveled to Iran and is currently isolated in her home. Meanwhile, the disease is spreading rapidly in South Korea and Japan. South Korea has reported an additional 123 cases of the coronavirus, taking the country’s total number of infections up to 4,335. Japan has confirmed five more cases in Hokkaido, bringing the country’s total number of infections to 77. Iran’s health ministry said 66 people have died due to coronavirus.— Li

7:43 am: Twitter shares jump 5% after Elliott Management pushes for CEO change

Shares of Twitter jumped more than 5% during Monday’s premarket trading after news that Elliott Management founder and billionaire investor Paul Singer is seeking to replace Twitter CEO Jack Dorsey, a person familiar with the matter told CNBC. The firm said that Dorsey’s attention is split between running both Twitter and Square, among other things. Shares of Twitter have shed 22% in the last 6 months. — Stevens

7:35 am: Another record low on the 10-year Treasury yield

The 10-year Treasury yield dropped to a fresh record low below 1.04% as the historic decline in U.S. rates continued amid the coronavirus outbreak and Wall Street calls for Federal Reserve stimulus. The benchmark 10-year rate, which moves inversely with prices, tumbled about 37 basis points in February alone. The fed funds futures market has already priced in a 50 basis point cut at the Fed’s meeting this month, according to CME Fed Watch tool.— Li

7:30 pm: Chart analyst says Friday’s low is the new line in the sand

On Friday, stocks rapidly pared losses in the last 15 minutes of trading, which serves as the first evidence of “downside exhaustion,” according to Rich Ross, Evercore ISI’s technical analyst. Therefore, investors should use the S&P 500′s intraday low on Friday — 2,853 — as the “new line in the sand,” Ross said. Below that level, there are only two levels of support of note at 2,722 (-7%) and 2,632 (-10%), he added.— Li

7:26 am: Bad China economic data spooked investors

China’s official Purchasing Managers’ Index (PMI), a gauge for its manufacturing sector, plunged to a record low of just 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday. Any reading below 50 signals a contraction. The somber reading provides the first official snapshot of the state of the Chinese economy since the outbreak of the coronavirus epidemic which has killed almost 3,000 people in mainland China and infected about 80,000.— Li

7:20 am: Dow futures down nearly 200 points after wild overnight session

The market’s worst rout since the financial crisis is set to resume as stock futures dropped again before the opening bell.  Dow futures were lower by about 168 points, indicated a loss of about 207 points at Monday’s open. The futures market experienced a volatile overnight session where Dow futures traded in a range of more than 1,000 points. S&P 500 and Nasdaq futures also pointed to more losses at the open. — Li

— CNBC’s Thomas Franck, Jeff Cox and Michael Bloom contributed reporting

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