US stock futures declined on Thursday, with risk-asset prices on pace for their worst weekly performance since the global financial crisis of 2008, after American health authorities said they identified the first case of the coronavirus with no known ties to the existing outbreak.
This development came after President Donald Trump sought to calm markets after a five-day losing streak that wiped out more than $2 trillion in value from US equities; telling reporters that the risk to Americans was "very, very low".
Investors, however, are seemingly unconvinced and continue to seek out safe-haven assets as they brace for global disruptions in business activity and corporate earnings.
Ahead, today’s economic calendar includes; Weekly Jobless Claims, the second estimate of fourth-quarter Gross Domestic Product in the United States and Durable Goods Orders for January at 8:30am EST, followed by Pending Home Sales for January at 10am EST.
Earnings reports are expected today from; Best Buy (BBY), Beyond Meat (BYND), Baidu (BIDU), VMWare (VMW), Dell Technologies (DELL), Workday (WDAY), Monster Beverage (MNST), Mylan (MYL), Occidental Petroleum (OXY), Autodesk (ADSK), Keurig Dr Pepper (KDP) and J.C. Penney (JCP).
TODAY'S TOP HEADLINES
Politics: President Trump Puts Vice President Pence in Charge of Virus Response. (The WSJ)
President Trump said Americans are at very low risk from the coronavirus, and he put Vice President Mike Pence in charge of federal response efforts as concern grew among lawmakers and a US case was diagnosed that may have no connection to travel abroad.
Today's Economical Announcements.
08:30AM - ★☆☆ - Weekly Jobless Claims (Previous: 210,000)
08:30AM - ★★★ - GDP (QoQ) (Q4) (Previous: 2.1%)
08:30AM - ★★★ - C. Durable Goods (Jan) (Previous: -0.1%)
10:00AM - ★★★ - Pending Home Sales (Jan) (Previous: -4.9%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Teladoc Health (TDOC): [EARNINGS] Lost 26 cents per share for the fourth quarter, less than the 33 cents a share loss that analysts were expecting. The virtual medical care company’s revenue came in above analysts’ forecasts.
Etsy (ETSY): [EARNINGS] Beat estimates by 9 cents a share, with quarterly earnings of 25 cents per share. The online crafts marketplace also reported better-than-expected revenue and Etsy predicted 2020 revenue growth of 27% to 30%.
Square (SQ): [EARNINGS] Came in 2 cents a share ahead of estimates, with quarterly profit of 23 cents per share. The mobile payments technology company saw its user base numbers surge compared to a year earlier.
Microsoft (MSFT): [GUIDANCE] Said it did not expect to meet prior guidance for its personal computing segment, due to supply chain disruptions related to the coronavirus outbreak.
Box (BOX): [EARNINGS] Beat estimates by 3 cents a share, with quarterly profit of 7 cents per share. The online storage software company’s revenue beat estimates as well, as demand for cloud services in general continues to accelerate.
L Brands (LB): [EARNINGS] Earned $1.88 per share for its latest quarter, 2 cents a share above estimates. Revenue came in very slightly above Wall Street forecasts. L Brands took a nearly $700 million charge during the quarter to write down the value of its Victoria’s Secret chain, and last week sold a controlling stake in the lingerie retailer to a private-equity partnership.
Gilead Sciences (GILD): [NEWS] Said it would begin its own studies of a potential treatment for the coronavirus next month, as it tries to become the first drug company to sell a medicine specifically designed to treat the virus.
Booking Holdings (BKNG): [EARNINGS] Reported quarterly earnings of $23.30 per share, beating the consensus estimate of $22.04 a share. The operator of Priceline and other online travel services also saw revenue beat estimates but issued lower-than-expected current-quarter guidance as the coronavirus outbreak impacts travel demand.
Marriott (MAR): [EARNINGS] Reported quarterly profit of $1.57 per share, 10 cents a share above consensus. The hotel chain’s revenue came in below Wall Street forecasts, however, and Marriott said it cannot fully estimate the financial impact of the coronavirus.
Best Buy (BBY): [EARNINGS] Reported quarterly profit of $2.90 per share, 15 cents a share above estimates. Revenue and comparable-store sale also beat forecasts. Best Buy expects the coronavirus to be a short-term disruption, although it said it cannot determine the exact impact as yet.
Keurig Dr Pepper (KDP): [EARNINGS] Matched forecasts with quarterly earnings of 35 cents per share, although revenue was slightly below estimates. Separately, the company announced a long-term agreement with Nestle to manufacture and distribute Starbucks-branded K-Cup pods in the U.S. and Canada.
GAINERS: BGS, MRNA, EYE, NET, IOVA
DECLINERS: CVM, SABR, SBGI, TOL, HTZ, EVRI, DK, SIG, PLAY
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