| What to watch today: Dow to drop into correction as global coronavirus concerns widen |
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THU, FEB 27, 2020
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AS OF THU, FEB 27, 2020 • 08:25 ET
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Dow Jones Fut |
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26,957.59 |
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Current: |
26,521.00 |
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Change: |
-393.00 |
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Impl. Open: |
-414.59 |
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S&P 500 Fut |
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3,116.39 |
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Current: |
3,067.75 |
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Change: |
-42.50 |
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Impl. Open: |
-47.84 |
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NASDAQ 100 Fut |
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8,873.76 |
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Current: |
8,702.50 |
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Change: |
-147.75 |
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Impl. Open: |
-175.26 |
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Russell 2000 Mini |
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1,552.76 |
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Current: |
1,530.10 |
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Change: |
-20.30 |
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Impl. Open: |
-22.66 |
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U.S. stock futures this morning were pointing to a drop in magnitude for the Dow to open in a correction. A correction is defined as a move of down 10% from record highs. The Dow closed at a record earlier this month. As of Wednesday's close, the Dow has dropped more than 8%, or nearly 2,400 points, in five straight sessions as coronavirus concerns intensified. (CNBC)
* 10-year Treasury yield breaks below 1.29% for the first time ever (CNBC)
Investors are looking at January durable goods, out this morning, for signs of coronavirus impact on the economy. The first revision of fourth-quarter GDP and weekly jobless claims were also released at 8:30 a.m. ET. The National Association of Realtors is out with its January report on pending home sales at 10 a.m. ET. (CNBC)
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Japan is closing schools next month, according to Reuters, as coronavirus cases there approach 200. The Centers for Disease Control and Prevention is trying to figure out how someone in California contracted the virus. "It's possible this could be an instance of community spread of COVID-19, which would be the first time this has happened in the United States," the CDC said Wednesday. (CNBC)
South Korea, with total coronavirus cases of 1,766, saw 505 new cases overnight, which outpaced the 433 new cases reported in China. More than 81,000 people worldwide are infected to date, with over 2,700 deaths. The bulk of cases and fatalities are still in China, where the outbreak originated. (CNBC)
* JetBlue scraps change and cancellation fees because of coronavirus in a US first (CNBC)
* Microsoft to miss guidance for segment that includes Windows because of coronavirus (CNBC)
* Gilead Sciences starts two late-stage studies to test drug for coronavirus (Reuters)
President Donald Trump put Vice President Mike Pence in charge of the U.S. response to the coronavirus. Trump, who CNBC sources said was livid about this week's outbreak-driven market plunge, blamed some of the recent selling on fears a Democrat could win the presidential election. (CNBC)
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Booking Holdings (BKNG) reported adjusted quarterly earnings of $23.30 per share, beating estimates. 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 impacts travel demand.
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Marriott (MAR) reported adjusted quarterly profit of $1.57 per share, 10 cents above consensus. However, the hotel chain's revenue fell below forecasts, and Marriott said it cannot fully estimate the financial impact of the coronavirus.
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Anheuser-Busch InBev (BUD) said its current-quarter profit would decline by about 10 percent, with the beer brewer expecting the coronavirus outbreak to significantly hit demand for its products in China.
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Box (BOX) beat estimates by 3 cents with adjusted quarterly profit of 7 cents per share, while the online storage software company also saw revenue beat estimates as demand for cloud services in general continues to accelerate.
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Square (SQ) came in 2 cents ahead of estimates with adjusted quarterly profit of 23 cents per share, as the mobile payments technology company saw its user base numbers surge compared to a year earlier.
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Etsy (ETSY) beat estimates by 9 cents with quarterly earnings of 25 cents per share, and the online crafts marketplace also reported better-than-expected revenue. Etsy also predicted 2020 revenue growth of 27 to 30 percent.
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Teladoc Health (TDOC) lost 26 cents per share for the 4th quarter, less than the 33 cent loss that analysts were expecting, while the virtual medical care company saw revenue come in above forecasts.
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L Brands (LB) earned an adjusted $1.88 per share for its latest quarter, 2 cents above estimates, with revenue very slightly above Wall Street forecasts. L Brands did take 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.
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