US stock futures extended to new depths on Friday, amid the worst week for global equity performance since the 2008 financial crisis as investors prepared for what could be a global coronavirus pandemic.
More evidence of the virus spreading outside of China helped to pour fuel on the sell-off overnight, with new confirmed cases recently reported in Nigeria, New Zealand and Lithuania; bringing the total number of people infected with Covid-19 to over 83,000 worldwide.
With analysts now warning of the potential for a coronavirus-led global recession, impacted by straining disruptions to global supply chains, risk appetite looks to be in short supply.
"This virus has pandemic potential" said WHO Director General, Tedros Adhanom Ghebreyesu. "This is not a time for fear. This is a time for taking action to prevent infection and save lives now."
These developments come after yesterday’s session, where the S&P 500 (-4.49%) ended sharply lower, as investors struggled to calculate the economic fallout from the epidemic.
Ahead, in today’s economic calendar, Friday includes; Personal Income and Outlays for January and International Trade in Goods for January at 8:30am EST, the Chicago PMI for February at 9:45am EST, followed by Consumer Expectations and Sentiment for February at 10am EST.
Earnings reports are expected today from; Foot Locker (FL), Wayfair (W), Spirit AeroSystems (SPR) and Icahn Enterprises (IEP).
TODAY'S TOP HEADLINES
Markets: Stocks on Track for Biggest Weekly Losses Since 2008. (The WSJ)
A market storm gathered pace Friday as stock markets around the world sold off and investors struggled to calculate the economic fallout from the coronavirus epidemic.
Today's Economical Announcements.
08:30AM - ★☆☆ - Personal Income (MoM) (Jan) (Previous: 0.2%)
08:30AM - ★★☆ - Personal Spending (MoM) (Jan) (Previous: 0.3%)
08:30AM - ★★☆ - Goods Trade Balance (Jan) (Previous: -68.67B)
09:45AM - ★★☆ - Chicago PMI (Feb) (Previous: 42.9)
10:00AM - ★★☆ - Michigan Consumer Expect. (Feb) (Previous: 90.5)
10:00AM - ★★☆ - Michigan Consumer Senti. (Feb) (Previous: 99.8)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Wayfair (W): Reported a larger-than-expected loss for the fourth quarter, sending its stock down more than 10% in the premarket. The company posted a loss of $2.80 per share. Analysts polled by FactSet expected a loss of $2.63 per share.
Beyond Meat (BYND): Reported a surprise quarterly loss. The meatless food company posted a loss of 1 cent per share for the previous quarter. The loss came even as quarterly revenue tripled on a year-over-year basis.
Wells Fargo (WFC): Upgraded to “neutral” from “underweight at Atlantic Equities, citing that, while Wells Fargo is “is the most exposed of the major banks to falling long-end rates, we believe that these concerns are now fully priced into the stock.”
Uber (UBER), Lyft (LYFT): Initiated with “overweight” ratings at KeyBanc Capital. “In ridesharing, secular growth remains solidly in the 15%+ range as consumers appreciate the convenience offered,” according to the firm.
Disney (DIS): BMO Capital Markets named Disney his top pick, replacing Netflix, noting the stock is “increasingly baking in more challenges already. We would use any near-term weakness related to COVID-19 virus as an opportunity to build long-term positions.”
Peloton Interactive (PTON): Was initiated with an “outperform” rating at Macquarie Research analyst, who said the company can “consolidate fitness demand across verticals and grow penetration off a low base thanks to its quality products/services and brand image.”
Dollar General (DG): Jefferies upgraded Dollar General to “buy” from “hold.” The firm said Dollar General’s “strategic initiatives set stage for accelerated EBIT growth w/F21 showing notable upside.”
Norwegian Cruise Line (NCLH), Royal Caribbean (CCL): Deutsche Bank downgraded Norwegian Cruise Line and Royal Caribbean to “hold” from “buy,” citing uncertainty amid the coronavirus outbreak. “Simply put, while these stocks have already endured significant selloffs, we cannot realistically recommend buying them,” the analyst wrote.
DECLINERS: NTNX, FLIR, EQM, PRGO, SSYS, PAAS, SABR, SBGI, HTZ
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