US stock futures turned lower on Monday, despite a rare tandem multi-national central bank effort to curb the “evolving risks” posed by the coronavirus outbreak through pledges to "act as appropriate".
Amidst the $6 trillion global market meltdown, the Bank of Japan issued a statement saying it “will closely monitor future developments and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases”.
The statement followed similar comments from US Federal Reserve Chairman, Jerome Powell, who pledged that the central bank would "act as appropriate" given "the coronavirus poses evolving risks to economic activity".
"We will use our tools and act as appropriate to support the economy", a statement added.
These developments come after Friday’s session, which saw stock prices selloff for a seventh consecutive day, with the S&P 500 having suffered its work week since the 2008 financial crisis, falling -11.16%.
Ahead, today’s economic calendar includes; Markit Manufacturing PMI for February at 9:45am EST, followed by Construction Spending for January and the ISM Manufacturing Index for February at 10am EST.
Earnings reports are expected on today from; Tilray (TLRY), JD.com (JD), Maxar Technologies (MAXR) and Boingo Wireless (WIFI).
TODAY'S TOP HEADLINES
Coronavirus: Coronavirus Spreading Faster Outside China Than Within. (The WSJ)
The global death toll from the novel coronavirus surpassed 3,000 Monday, as new cases jumped in Italy, Iran and South Korea and three more nations reported their first confirmed patients.
Today's Economical Announcements.
09:45AM - ★★☆ - Manufacturing PMI (Feb) (Previous: 51.9)
10:00AM - ★☆☆ - Construction Spending (Jan) (Previous: -0.2%)
10:00AM - ★★★ - ISM Manufacturing PMI (Feb) (Previous: 50.9)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Twitter (TWTR): [NEWS] Elliott Management founder Paul Singer is looking to replace Twitter CEO Jack Dorsey, noting the company’s top executive’s focus is split by also running Square (SQ).
Carnival (CCL), American Airlines (AAL), Delta (DAL): [NEWS] Travel stocks Carnival, Delta, and American Airlines all fell as the number of coronavirus cases around the world jumped over the weekend.
Apple (AAPL): [UPGRADE] Oppenheimer upgraded the tech giant to “outperform” from “perform,” noting Apple “has mastered the art to turn technology into deeply personal and indispensable everyday objects from phones to Watch to AirPods.” The analyst added that given the company’s “products and services will prove more resilient than competitive products in uncertain times.”
SmileDirectClub (SDC): [DOWNGRADE] UBS cut its SmileDirectClub rating to “neutral” from “buy,” and slashed its price target to $9 per share from $18 per share. “The company needs to show that it can sell its clear aligner products in a model that can generate profits and cash flow for the company and shareholders,” an analyst wrote.
Western Digital (WDC), Micron (MU): [UPGRADE] Upgraded to “outperform” and “neutral,” respectively, by Baird. Memory chip “pricing positive outlooks remain unchanged for the year, despite current demand weakness in smartphones and PCs,” according to Baird.
General Electric (GE): [UPGRADE] JPMorgan upgraded the industrial giant to “neutral” from “underweight,” noting the company’s floor on free cash flow exceeded his expectations.
Verizon (VZ): [UPGRADE] Upgraded to “outperform” from “market perform” at Cowen. “We look to take advantage of the recent sell-off with the stock now trading at a dividend spread (vs. the 10-yr rate) not seen in 7+ years,” the firm noted, who added there is low risk to Verizon’s earnings at this moment.
JPMorgan Chase (JPM): [UPGRADE] Piper Sandler upgraded JPMorgan Chase to “overweight” from “neutral,” calling the stock a “relative winner in any macro-environment.”
Gilead Sciences (GILD): [NEWS] Announced it will buy immune-oncology company Forty Seven (FTSV) for $4.9 billion in cash, or $95.50 per share. The deal represents a premium of 64.7% to the stock’s closing price on Friday.
DECLINERS: SWCH, BVN, GRFS, SABR
WE WILL SHOW YOU THE WAY!