US stock futures gathered downward momentum on Thursday, with market index prices once again testing a limit-down response, as global stock prices continued on track to enter a bear market.
President Donald Trump’s 30-day ban on most travel from Europe was the latest catalyst to induce fresh panic selling; a result of upcoming widespread disruptions to international business operations.
Trump said his administration was "marshalling the full power of the federal government" and private sector to combat what he called this "foreign virus."
The president had also laid out financial measures to stem threats posed to the economy by the virus, however his underwhelming clarity surrounding these measures did little to reassure investors.
Separately, the World Health Organization declared the coronavirus crisis a pandemic on Wednesday as disruptions to daily human life worsened across most of the globe.
These developments look to weigh heavily on yesterday’s declines where the S&P 500 ended -4.87% lower, while the Nasdaq fell -4.36% and where the Dow Jones lost -5.84% of its value.
Ahead, today’s economic includes; Weekly Jobless Claims and the Producer Price Index for February at 8:30am EST.
Earnings reports are expected today from; Broadcom (AVGO), Adobe (ADBE), Oracle (ORCL), Slack Technologies (WORK), Dollar General (DG), Gap (GPS) and Ulta Beauty (ULTA).
TODAY'S TOP HEADLINES
Coronavirus: Trump bans travel from Europe to US. (CNBC)
US President Donald Trump has imposed a travel ban on some European countries after the World Health Organization named the coronavirus a global pandemic.
Today's Economical Announcements.
08:30AM - ★☆☆ - Weekly Jobless Claims (Previous: 216,000)
08:30AM - ★★★ - PPI (Feb) (Previous: 0.5%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Party City (PRTY): [EARNINGS] Earned 51 cents per share for its fourth quarter, well below the 88 cents a share consensus estimate. Revenue also missed forecasts, with comparable-store sales falling 5.1% versus a Refinitiv consensus estimate of a 4.9% decline. The company also said CEO Jim Harrison is stepping down on April 1, replaced by retail chief Brad Weston.
Boeing (BA): [NEWS] Washington state lawmakers have passed a measure that removes a significant tax break for Boeing and other aerospace companies. The move is an attempt to prevent possible European tariffs on US goods. The World Trade Organization has ruled in the past that both Boeing and European rival Airbus have received billions of dollars in unfair government subsidies.
Occidental Petroleum (OXY): [NEWS] Investor Carl Icahn told The Wall Street Journal he has increased his stake in Occidental to nearly 10%, compared to about 2.5% at the end of 2019.
Marathon Petroleum (MPC): [NEWS] Is exploring the sale of assets of its pipeline subsidiary MPLX, according to a Reuters report. The assets could be worth as much as $15 billion.
General Electric (GE): [NEWS] The cost of insuring GE debt has jumped to levels last seen in 2018, according to data from information provider Markit and quoted in The Wall Street Journal. The rise is seen as a reaction to GE’s possible business exposure from the coronavirus outbreak.
Best Buy (BBY): [NEWS] Executive Chairman Hubert Joly will not stand for re-election at the electronics retailer’s annual meeting in June. Joly, who served as Best Buy CEO until a year ago, will remain as a consultant for one year.
EBay (EBAY): [NEWS] Activist investor Starboard Value is nominating a slate of directors to the board of the online marketplace, according to people familiar with the matter who spoke to The Wall Street Journal.
Dollar General (DG): [EARNINGS] Reported quarterly earnings of $2.10 per share for its latest quarter, 9 cents a share above estimates.
Revenue also beat forecasts. Comparable-store sales were up 3.2%, better than the 2.8% rise predicted by analysts surveyed by Refinitiv. Dollar General also raised its quarterly dividend to 36 cents per share from 32 cents a share.
CME Group (CME): [NEWS] Will close its Chicago trading floor at the close of business on Friday, to reduce large gatherings and help prevent the spread of the coronavirus. CME-listed products will continue to trade electronically.
DECLINERS: WYND, BA
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