Stock market live updates: Worst week for Dow since '08, Coronavirus fears rise, Virgin Galactic dives

Traders work at New York Stock Exchange Feb. 25, 2020.

Zhang Mocheng | Xinhua | Getty Images

This is a live blog. Check back for updates.

8:26 am: Airline stocks slide

Shares of airline stocks slid in Thursday’s premarket trading as coronavirus fears continued to hit the sector, and as Buckingham Research downgraded seven airline stocks to neutral. American Airlines and United Airlines were among the names downgraded, and were down 6.3% and 4.4%, respectively, in early trading. So far this week American Airlines has lost 19.8%, while United Airlines has shed 14.7%. – Stevens

8:24 am: Goldman says 0% earnings growth in 2020 for U.S. companies

Goldman Sachs downgraded its earnings growth forecast for the year to $165 per share, representing 0% growth in 2020 for U.S. companies. This is a dramatic departure from consensus estimates, which still forecast earnings to climb 7% this year. “US companies will generate no earnings growth in 2020,” Goldman Sachs chief U.S. equity strategist David Kostin said in a note to clients on Thursday. “We have updated our earnings model to incorporate the likelihood that the virus becomes widespread.” The firm said the new expectation reflects the severe decline in Chinese economic activity this quarter, low demand for US exporters and disruption to the supply chain, among other weak signposts. – Fitzgerald

7:45 am: Dow and S&P 500 on the cusp of entering correction territory

The Dow and S&P 500 were set to open in correction territory — down at least 10% from their 52-week highs — as coronavirus fears rattle market sentiment. Dow futures implied a decline of about 400 points, which would put the 30-stock average below 26,596.28. S&P 500 futures pointed to a loss of about 1.5%. A loss of that magnitude would put the broad index below 3,047.53. —Imbert, Schacknow

7:25 am: 10-year Treasury yield hits fresh record low

The 10-year U.S. Treasury note yield broke below 1.3% for the first time ever as concerns over the coronavirus spreading in the U.S. led investors to dump equities in favor of traditionally safer assets. In early morning trading, the 10-year rate hovered around 1.285%. Investors have been loading up on Treasurys at a face pace this week. The 10-year yield started this week trading above 1.4%. —Imbert

7:13 am: Virgin Galactic shares dive on two downgrades

One-time market darling Virgin Galactic is falling in premarket trading after two major Wall Street backers threw in the towel, citing valuation. Morgan Stanley and Credit Suisse both removed their buy ratings on the stock. Shares are down 9%, adding to their already bad week. The stock was off 23% for the week already through Wednesday’s close. CNBC PRO subscribers can read more here. – Melloy

7:09 am: Etsy surges on earnings beat

Shares of Etsy soared more than 10% in extended trading following its strong fourth quarter earnings. The e-commerce website reported earnings per share of 25 cents on revenue of $270 million. Analysts were expecting earnings per share of 16 cents on revenue of $265 million, according to Refinitiv. Etsy also issued full year revenue guidance above Wall Street’s estimates. Shares of Etsy have gained nearly 15% this year. – Fitzgerald

7:07 am: Taking stock of the sell-off

It’s been a rough week for stocks, and futures suggest there may not be a reprieve just yet. Here’s where things stand. – Stevens

  • Dow: dropped 2,031 points in the last 3 sessions, down 7.02% this week putting it on track for its worst weekly performance since Oct. 2008.
  • S&P 500: coming off 5 straight negative sessions, down 6.63% for the week and on track for its worst week since Dec. 2018.
  • Nasdaq: posted a slight gain on Wednesday, but not enough to erase the losses from earlier in the week. Currently down 6.22% on the week, for its worst weekly performance since Dec. 2018.

6:56 am: CDC confirms first possible ‘community spread’ coronavirus case in U.S.

On Wednesday U.S. officials confirmed the first possible community transmission of the coronavirus on U.S. soil. The CDC said it did not know how the patient, a resident of Solano County in California, contracted the disease. Stock futures fell when the news was confirmed Wednesday night.

“At this time, the patient’s exposure is unknown,” the CDC said in a statement. “It’s possible this could be an instance of community spread of COVID-19, which would be the first time this has happened in the United States.”

This case brings the total number of cases in the U.S. to 60, the majority of which were from people evacuated from Wuhan, China and the Diamond Princess cruise ship. – Stevens

6:36 am: U.S. stock futures point to losses at the open, Dow set for more than 200-point drop

U.S. stock futures are pointing to losses across the board at the open after the CDC confirmed the first U.S. coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease. The Dow Jones Industrial Average looked set to open nearly 300 points lower, with the S&P 500 and Nasdaq also pointing to losses.

On Wednesday the Dow gave back a 461 point gain in early trading, ultimately closing down 122 points, bringing its week-to-date fall to 2,031 points. The S&P 500 fell another 0.3%, after suffering its first back-to-back 3% losses since 2015. The Nasdaq eked out a 0.3% gain.

On Wednesday President Trump said in a news conference the risk of coronavirus to people in the U.S. is still “very low.” He added the U.S. is going to “spend whatever’s appropriate” to deal with the virus. Trump also put Vice President Mike Pence in charge of the U.S. response to the coronavirus. – Stevens

CNBC’s Fred Imbert and Peter Schacknow contributed reporting.

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