US stock futures rebounded on Tuesday, following yesterday’s abrupt declines which saw energy prices suffer a historic assault and stocks worldwide post their largest losses since the global financial crisis.
March 9th; S&P 500: -7.81%, Nasdaq: -6.95%, Dow Jones: -7.78%.
Futures tied to equity exchanges strengthened this morning however, following President Trump’s pledge to discuss measures such as tax cuts with Congress; an announcement met with cautious optimism.
Trump said his administration will be meeting with House Republicans later today to discuss a "substantial" payroll tax cut, and "getting help" for hourly workers, as well as working with companies on an economic relief plan in the face of the fast-spreading Covid-19 outbreak.
Treasury Secretary, Steve Mnuchin, meanwhile, addressed the decline in stocks saying he is confident in the strength of the US economy.
Ahead, earnings reports are expected today from; Dick's Sporting Goods (DKS), Cloudera (CLDR) and Vivint Solar (VSLR).
TODAY'S TOP HEADLINES
Politics & Economy: Trump Floats Payroll Tax Cut. (CNBC)
President Trump said he will be meeting with Senate and House Republicans on Tuesday to discuss “a possible tax relief measure” that would provide “a timely and effective response to the coronavirus.”
Today's Economical Announcements.
06:00AM - ★☆☆ - NFIB S. Business Optimism (Feb) (Previous: 104.3)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Dick’s Sporting Goods (DKS): [EARNINGS] Reported adjusted quarterly earnings of $1.32 per share, 10 cents above estimates, with revenue also above forecasts. Comparable store sales were up 5.3 percent compared to a Refinitiv-provided consensus estimate of up 3.0 percent, and the company also announced a 13.6 percent increase in the quarterly dividend.
Novavax (NVAX): [NEWS] Was awarded $4 million by the Coalition For Epidemic Preparedness in initial funding to support the development of a Covid-19 vaccine.
Stitch Fix (SFIX): [GUIDANCE] Under pressure after giving weaker than expected current quarter and full year guidance. The online clothing styling service pointed to the financial impact of promotional activity across the retail sector. Stitch Fix did earn 11 cents per share for its second quarter, 5 cents above estimates, but revenue fell short of Wall Street forecasts.
Tesla (TSLA): [NEWS] Plans to increase production capacity for certain car parts at its Shanghai factory, according to a government document seen by Reuters.
Fifth Third (FITB): [NEWS] Was charged by the Consumer Financial Protection Bureau with opening new accounts without customer consent, in order to meet sales goals. Fifth Third called the allegations “unnecessary and unwarranted”.
Vail Resorts (MTN): [EARNINGS] Reported quarterly earnings of $5.04, missing the consensus estimate of $5.45, with revenue falling short of estimates as well. The resort operator also pulled its annual guidance and said it sees business continuing to decline.
L Brands (LB): [REVIEW] Was named a “Catalyst Call” at Deutsche Bank, which said it expects the buy-rated stock to outperform – in part because a coronavirus-related stock-up at its Bath & Body Works chain.
United Parcel Service (UPS): [UPGRADE] Upgraded to “buy” from “hold” at Stifel, which notes the recent sell-off in the stock and that the delivery service has a steady earnings and cash flow profile that is attractive under current market conditions.
Wells Fargo (WFC): [NEWS] Said Elizabeth Duke has resigned as the bank’s chair, replaced by board member and former Bank of America chief financial officer Charles Noski. Duke is scheduled to testify before a House panel Wednesday on the bank’s efforts to reform its practices following its sales scandal, and was expected to face calls to step down.
Occidental Petroleum (OXY), Apache (APA), Marathon Oil (MRO): [NEWS] Energy producers are among those set for double-digit percentage rebounds today, following a Monday drubbing resulting from the biggest drop in crude prices since the 1991 Gulf War.
Delta Air Lines (DAL), American Airlines (AAL), Southwest (LUV), United Air Lines (UAL), JetBlue (JBLU): [NEWS] Airline stocks remain on watch, as travel continues to be impacted by coronavirus concerns.
Reynolds Consumer Products (REYN): [EARNINGS] Reported lower than revenue for its latest quarter, in its first quarterly report since going public in January. Adjusted earnings were roughly in line with Wall Street projections.
DECLINERS: OXY, TRGP, NS, OKE, PXD, THO
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