Dow futures point to 600-point drop at the open as historic sell-off in oil continues

CNBC.com ^ | April 21, 2020 | Fred Imbert and Yun Li

[John W]

Stock futures pointed to big losses for a second day on Tuesday as oil prices continued their unprecedented wipeout.

Traders were focused on the strange happenings with oil futures once again, which raised concern about deep losses for the energy industry hitting the U.S. economy even further.

On Monday, the May contract for oil futures expiring Tuesday fell to zero and then went to an actual negative price, meaning producers would pay for someone to take the oil off their hands.

The bizarre move has to do with the fact that because of the coroanvirus shutdowns, big buyers of oil like refineries don't need any more oil because their tanks are nearly filled.

[PGR88]

May oil contract going negative is unseen and probably freaking-out traders. Its a new risk and danger sign which has never been seen before, so when there is new, unknown risk, they always panic.

[CMailBag]

And the Democrats are giggling all the way to Venezuela...

[nevermorelenore]

Leary of which Country/Companies might purchase during the fire sale...

[WhoisAlanGreenspan?]

I tried a long trade yesterday on crude that would have worked, but that was only if you got out in time. My broker (tradestation) for whatever reason didn't allow that trade.

Others I spoke to were also not allowed to trade. But someone institutional no doubt, was buying long on that clk20 contract when it was -$40.09

[Old Yeller]

Yahoo finance is claiming the Dow dropped after Trump tweeted that he is suspending immigration, or some bs like that.

[Vermont Lt]

This is also an indication that China is nowhere near re-opening their industries. No one is buying.

[bert]

——No one is buying-—

AAhhh..........sanity is interjected into the discussion

[MeneMeneTekelUpharsin]

Well, maybe this poster needs a little heat for posting that the futures dropped. You guys ran me off last time I did that.

[1Old Pro]

Hey, let’s wait a year or two to open the economy, we really need to test everyone, have to wait for kits, heck if we don’t cower there may be a 2nd wave.

[grey_whiskers]

This is also an indication that China is nowhere near re-opening their industries. No one is buying.

(Sound of grey_whiskers purring)

[Vermont Lt]

If we had manufacturing capacity here, I wouldn’t care either.

They have screwed us pretty well.....

[lurk]

You with wiser minds would know better. Why is this historic low not an occasion to buy?