S&P’s this morning High 325.32 Low 324.17 Change -0.75%
Tokyo -401.65 Hong Kong -711.50 London -103.16 Germany -157.61
S&P Futures are trading lower this morning. Markets are concerned with the rapidly spreading coronavirus and its impact on China’s GDP. Positive earnings from MSFT, TSLA, BIIB. Growth appears to be slowing at FB.
Asian Markets were mainly lower overnight amid worries about the coronavirus outbreak in China. Some of the world’s largest companies are curbing operations in China and restricting travel to the region due to the fast-spreading virus. The coronavirus numbers continue to increase, Chinese health officials state that the coronavirus outbreak has killed 170 people and infected 7,711 people. Yesterday’s figures were 132 killed with 5,974 people infected.
European stocks have been dealing with selling pressure all morning due to heightened concerns of economic growth in China. The SARS virus is said to have infected 8000 people and resulted in approximately 800 deaths. The outbreak could cause China’s real GDP growth to shrink to below 4% from the 6% pace in the fourth quarter
Oil prices are trading lower this morning. Oil traders are concerned on the demand side of the oil equation as oil demand from China is likely to decrease due to the increasing numbers of coronavirus. In addition the Energy Information Administration released a bearish report on oil stockpiles yesterday morning. News reports indicate that OPEC will probably move its March meeting forward as the coronavirus in China is putting pressure on oil prices amid fears that the viral outbreak will hurt demand in the world’s biggest oil importer. Algerian Energy Minister Mohamed Arkab, who is also the cartel’s rotating president, said late Wednesday that OPEC is likely to advance its March meeting to February “to find a way to balance markets.” OPEC has been discussing deepening its production cuts ahead of the meeting. There is report out this morning indicating that Saudi Arabia prevented and attack on the Saudi Aramco facilities at Jazan last week by the Iranian backed Houthi rebels.
WTI is at $52.05 a barrel, Brent Crude is at $58.29 a barrel.
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Federal Reserve officials left interest rates unchanged at the conclusion of their two-day policy meeting and made few changes to their previous post meeting statement from December. Fed officials indicated in a post-meeting statement that they would monitor “global developments and muted inflation pressures” in deciding the next phase of monetary policy. Jerome Powells press conference spent considerable amount of time discussing the economic activity abroad than on domestic economic growth. Chairman Powell stated “There is likely to be some disruption to activity in China and globally, It’s very uncertain how far it will spread and what the (economic) effects will be in China, for its trading partners, and around the world &. We are very carefully monitoring the situation.” The economic indicators he is watching most closely are purchasing managers’ indexes of manufacturing activity in other countries, which have bottomed out but still aren’t in growth territory. One notable change from the December meeting statement is that the Fed is now extending its duration of its repo operations, which in December were supposed to conclude in January 2020, to “at least” April 2020.
At 08:30 am ET Jobless Claims and the GDP report..
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Bullish option activity in LAKE MSFT & TSLA
Bearish option activity in HYG, LVS & SKT
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Sector Update: Headlines to Note-
V .ERN Earnings due this afternoon, stock is priced for a $4.50 move.
DECK .ERN Earnings due this afternoon, stock is priced for a $15.00 move.
AMZN .ERN Earnings due this afternoon, stock is priced for a $57.00 move.
APTX P/SGN Has published its NMDAr modulator data for Parkinsonb s
PRQR P/SGN Receives rare Pediatric Disease Designation from FDA.
MGEN P/SGN Announces positive data from Phase 1 trial of cobomarsen.
CAT .ERN Earnings due Friday morning, stock is priced for a $5.30 move.
MCD .REC Stifel raised its price target to $200 from $175.
VZ .ERN Took a roughly 200m write-down the value of yahoo & aol.
SPY P/SGN Bolton’s book can’t be published in current form, says NSC.
AMGN .ERN Earnings due out after the bell stock is priced for a $5.90 move.
EA .ERN Earnings due out after the bell stock is priced for a $5.60 move.
Earnings Announcements and Options Analysis
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