US stock futures traded lower on Wednesday, bringing with them another day of reversals in many major markets, after Trump failed to deliver specific details as to what “major” stimulus measures would be taken to combat the economic impact of the coronavirus outbreak.
This development follows a frenetic day where the S&P 500 (+5.17%) soared following Trump’s announcement that the US government was working to curb the cruise line industry's exposure to the Covid-19 outbreak; further substantive details were not provided however.
Meanwhile, the number of coronavirus cases in the US topped 1,000 and New York set up the country’s first “containment area” around one of the largest clusters of cases in the nation.
Ahead, in today’s economic calendar, Wednesday includes; the Consumer Price Index for February at 8:30am EST, followed by Crude Oil Inventories for the week ended March 6 at 10:30am EST.
Earnings reports are expected today from; United Natural Foods (UNFI), Express (EXPR), Novavax (NVAX), Del Taco Restaurants (TACO) and Vera Bradley (VRA).
TODAY'S TOP HEADLINES
Markets: UK Markets Bounce After BOE Cuts Rates in Emergency Move. (Bloomberg)
UK stocks jumped after the Bank of England lowered interest rates and announced measures to combat the coronavirus' economic fallout.
Today's Economical Announcements.
08:30AM - ★★★ - C. CPI (MoM) (Feb) (Previous: 0.2%)
08:30AM - ★★☆ - CPI (MoM) (Feb) (Previous: 0.1%)
10:30AM - ★★★ - Crude Oil Inventories (Previous: 0.785M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Apple (AAPL): [REVIEW] Bank of America Securities cut its price target for the stock to $320 per share from $350, as it lowers earnings estimates. BofA predicts supply constraints for Apple to last until April or May due to virus-related labor shortages.
Bank of America (BAC): [NEWS] Bank of America chief technology officer Howard Boville has left the bank, according to a source who spoke to Reuters. He will not be replaced, with his duties split across the bank’s various business segments.
Express (EXPR): [EARNINGS] Reported quarterly earnings of 19 cents per share, a penny a share above estimates. Revenue also beat forecasts. Comparable-store sales fell by 3%, however, greater than the 2.7% drop predicted by analysts. The company is also forecasting a larger-than-expected current-quarter loss.
Cloudera (CLDR): [EARNINGS] Reported profit of 4 cents per share for its fiscal fourth quarter, compared to a consensus estimate of a loss of 3 cents per share. The cloud-computing company’s revenue also exceeded Wall Street forecasts, and it issued an upbeat outlook.
DXC Technology (DXC): [NEWS] Will sell its Medicaid services unit to private-equity firm Veritas Capital for $5 billion in cash. DXC had said in November it would consider alternatives for the unit, so it could focus on enterprise technology solutions. DXC was formed in 2017 through the merger of Computer Sciences and the enterprise services unit of Hewlett Packard Enterprise (HPE).
PepsiCo (PEP): [NEWS] Announced a deal to buy energy drink maker Rockstar Energy for $3.85 billion, expanding its presence in the energy drink segment.
Fiat Chrysler (FCAU): [NEWS] Said it would temporarily close plants across Italy to minimize the risk of spreading the coronavirus. The automaker said administrative areas will continue normal activities, while complying with any directives from the Italian government.
Regeneron Pharmaceuticals (REGN), Sanofi (SNY): [NEWS] The drugmakers are readying tests of their Kevzara rheumatoid arthritis drug as a possible treatment for symptoms of the coronavirus.
Korn Ferry (KFY): [EARNINGS] Reported fiscal third-quarter profit of 75 cents per share, 2 cents a share above estimates. The consulting firm’s revenue also beat forecasts, however the company said the coronavirus outbreak has “clouded the near-term predictability of our business.”
Eli Lilly (LLY): [REVIEW] Was added to the “Conviction Buy” list at Goldman Sachs, which said the drugmaker’s growth profile is among the strongest in the U.S. large-cap biopharma sector.
Hilton Worldwide (HLT): [NEWS] Has withdrawn its financial guidance for the current quarter and the full year, due to the unknown impact of the coronavirus on its business.
DFP Healthcare (DFPHU) (Price: 10) (Est. Vol: $200.0M)
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