US equity-index futures rose on Wednesday, a day after the S&P 500 (+0.17%) closed at a fresh record high, as concerns surrounding China’s coronavirus outbreak and potential economic fallout eased.
While over 44,000 people have been infected with the virus globally, the spread of the disease appears to be slowing after China’s Hubei province reported a lower number of new virus cases in February.
These developments look to indicate that Chinese and international government actions to contain the spread might be working.
President Xi Jinping vowed China would meet its economic goals while winning the battle against the virus.
Meanwhile, Powell didn't specifically say whether the coronavirus outbreak changed the Fed's expectations for US economic growth during the first day of his testimony before Congress.
When asked, Powell simply said it is "too early to say".
Later in the day, investors may get fresh insights on the health of the US economy when Powell continues with his testimony at 10am EST. Today’s economic calendar also includes Crude Oil Inventories for the week ended Feb. 7 at 10:30am EST.
In earnings; CVS Health (CVS), Cisco Systems (CSCO), Applied Materials (AMAT), Shopify (SHOP), Teva Pharmaceutical (TEVA), Tradeweb Markets (TW), Equifax (EFX), TripAdvisor (TRIP), Barrick Gold (GOLD and Molson Coors (TAP) are all expected to report today.
TODAY'S TOP HEADLINES
China: Death Toll 1,115; Chinese Grand Prix Postponed. (Bloomberg)
President Xi Jinping said China would meet its economic goals while battling the coronavirus that has now claimed 1,115 lives. Economists are turning more pessimistic about the chances of a speedy recovery for China’s economy. The Chinese Grand Prix will be postponed.
Today's Economical Announcements.
10:00AM - ★★★ - Fed Chair Powell Testifies
10:30AM - ★★★ - Crude Oil Inventories (Previous: 3.355M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Bed Bath & Beyond (BBBY): [NEWS] Same-store sales were down a greater-than-expected 5.4% in December and January, amid increased promotional pricing, lower store traffic, and issues with inventory management.
Shopify (SHOP): [EARNINGS] Earned an adjusted 43 cents per share for its latest quarter, compared to a consensus estimate of 24 cents a share. Revenue also beat forecasts on strong Black Friday and Cyber Monday sales on Shopify’s platform.
CyberArk Software (CYBR): [EARNINGS] Beat estimates by 16 cents A share, with quarterly earnings of 97 cents per share. Revenue also came in above consensus. CyberArk said, however, that its full-year adjusted EPS outlook is $2.26-$2.38, below the consensus estimate of $2.79 a share.
Lyft (LYFT): [EARNINGS] Lost $1.19 per share for the fourth quarter, 20 cents a share less than Wall Street had been expecting. The ride-hailing service’s revenue beat consensus estimates. Lyft also said it is still on track to achieve a key measure of profitability by the end of 2021.
NCR (NCR): [EARNINGS] Beat estimates by a penny a share, with quarterly profit of 85 cents per share. The payment processing software and services provider’s revenue was also above Street forecasts.
Molson Coors (TAP): [EARNINGS] Earned $1.02 per share for the fourth quarter, well above the 78 cents a share consensus estimate. Revenue also beat Wall Street projections, despite what Molson Coors calls “significant headwinds and continued volume declines.”
Akamai Technologies (AKAM): [EARNINGS] Reported adjusted quarterly earnings of $1.23 per share, 10 cents a share above estimates. Akamai’s ’s revenue also beat Street forecasts. Results were driven by strong growth in its cloud security unit, as well as upbeat results for its flagship content delivery platform business.
Teva Pharmaceutical (TEVA): [EARNINGS] Beat estimates by a penny a share, with quarterly profit of 62 cents per share. Revenue also topped expectations.
CVS Health (CVS): [EARNINGS] Beat estimates by 5 cents a share, with quarterly earnings of $1.73 per share. Revenue also beat forecasts and CVS gave a full-year EPS outlook of $7.04 to $7.17, compared to a consensus estimate of $7.15 a share.
Western Union (WU): [EARNINGS] Reported quarterly earnings of 38 cents per share, 5 cents a share below estimates. The payment processing company’s revenue also beat forecasts, and Western Union gave an upbeat outlook for 2020. The company announced a 13% increase in its quarterly dividend as well.
Macerich (MAC): [DOWNGRADE] Downgraded to “underweight” from “neutral” at Piper Sandler, which thinks Simon Property’s (SPG) acquisition of Taubman Centers (TCO) makes an acquisition of the shopping center operator less likely.
Alphabet (GOOGL): [NEWS] Alphabet’s Google unit will be in court today, seeking to overturn one of three record European Union antitrust fines. Google had been fined $2.6 billion for allegedly favoring its own price comparison shopping service over those of smaller European competitors.
Moody’s (MCO): [EARNINGS] Earned $2.00 per share for the fourth quarter, 7 cents a share above estimates. Revenue also came in above analysts’ forecasts. The company’s full-year outlook for 2020 is also largely above consensus. Moody’s said it is benefiting from increased global bond issuance, as well as increasing demand for research from its Moody’s Analytics unit.
GAINERS: ADVM, MOH, INGR, IRDM, AMBA, SBAC, DVA
DECLINERS: UAA, GT
Huize Holding (HUIZ) (Low: 9.40, 11.40) (Est. Vol: $48.4M)
Newborn Acquisition (NBACU) (Low: 10) (Est. Vol: $50.0M)
WE WILL SHOW YOU THE WAY!