Traders work on the floor of the New York Stock Exchange on January 29, 2020.
Spencer Platt | Getty Images
This is a live blog. Check back for updates.
10:07 am: Market comeback is expected as world learns more about coronavirus, economist says
Global stocks gaining traction over the last four days makes sense, as people are realizing the coronavirus outbreak isn’t likely to cause long-term effects on the markets, said China Beige Book’s chief economist Derek Scissors on “Squawk Box.” “This isn’t a natural disaster that destroys capital stock,” he said. “As long as people recover fully it’s not going to affect productivity.” China is facing a short-term GDP bump, he said, but long-term growth should stay stable, he added. The Shenzhen composite on Thursday surged 2.895% to end its trading day at approximately 1,727.24 while the Shenzhen component advanced 2.87% to close at 10,601.34. The Shanghai composite rose 1.72% to close at about 2,866.51. — Bursztynsky
9:55 am: Deutsche Bank lowers GDP growth estimates due to virus
The outbreak of the new coronavirus will lower global GDP growth by 50 basis points in the first quarter, according to a note from Deutsche Bank.The bank lowered its estimate for China’s GDP growth to 4.6% from 6.1% from the quarter and revised its estimates for other major countries downward as well, dropping its world growth estimate by 0.5 percentage points. For the full year, Deutsche Bank lowered its world growth estimate to 3.1% from 3.3%.Deutsche Bank also estimated that the outbreak would cause Japan’s GDP to shrink in the first quarter and for the full year. — Pound
9:50 am: Dow erases 100-point gain
The Dow cut its gains at the open completely, turning negative after hitting a new intraday high earlier. Exxon Mobil and chemicals company Dow lost 1.1% and 1.8%, respectively, weighing on the 30-stock index. — Li
9:45 am: Twitter shares surge 14%
Twitter shares jumped 14% following the company’s fourth quarter earnings. The Street seems to be ignoring the company’s EPS miss, instead focusing on the strong user numbers and revenue beat. Twitter earned 25 cents per share compared with Street estimates of 29 cents, according to Refinitiv, and revenue came in at $1.01 billion. Analysts had been expecting $996.7 million. Monetizable daily active users grew 21%, the fastest rate of growth ever, to a record 152 million. — Stevens
9:40 am: Tesla breaks below $700
Shares of Tesla slipped as much as 6% in the opening minutes of trading as the stock fell as low as $687 a share. The move continues Wednesday’s more than 17% drop for the stock. Additionally, Tesla is nearly 30% below the intraday high of $968.99 a share it hit on Tuesday. – Sheetz
9:32 am: Dow rises 100 points at the open
The Dow opened about 100 points higher to another all-time high, headed for its fourth straight day of gains. IBM and 3M are the best performers in the 30-stock index, up 1.5% each. The S&P 500 climbed 0.2% to a record at the open, bringing its week-to-date rise to 3.5%. The Nasdaq Composite rose 0.1%.— Li
8:53 am: Biggest analyst calls of the day
- Bernstein upgraded VMware to outperform from market perform (VMW up 1.6%)
- Raymond James upgraded Micron to strong buy from market perform (MU rises 2.3%)
- Mizuho initiated AbbVie & Pfizer as buy (ABBV up 0.9%; PFE gains 0.6%)
- Bank of America downgraded Funko to underperform from buy (FNKO plummets 39%)
CNBC Pro subscribers can read more here. —Bloom
8:50 am: Weekly jobless claims drop to 202,000
Jobless claims in the U.S. fell last week to 202,000 — a nine-month low — from 217,000 in the previous week. Economists polled by Dow Jones expected claims to slip down to 215,000. The data follows a strong private payrolls report from ADP and Moody’s Analytics on Wednesday, which helped boost the major averages. The U.S. government is also scheduled to release its monthly jobs report on Friday. —Imbert
8:48 am: JPMorgan not ready to call the all-clear from coronavirus
Stocks have been on fire this week as coronavirus fears recede, but JPMorgan strategist Nikolaos Panigirtzoglou thinks some caution is still warranted. “Despite this week’s equity market rebound we are reluctant to chase short-term momentum,” Panigirtzoglou said in a note to clients. “There is a significant risk of an unexpected re-acceleration of new coronavirus cases.” He added the pace of new reported cases in China could gain steam once again as factories re-open and “more people come in contact with each other.” —Imbert, Bloom
8:45 am: Factor rotation returned on Wednesday, UBS says
The rotation into value stocks that appeared last fall returned on Wednesday, UBS said in a note, with investors moving out of momentum and growth stocks and into names that are considered to be value and cyclical stocks. Big tech stocks, for example, failed to keep pace with the S&P 500’s 1.13% gain yesterday. Facebook, Apple and Netflix all finished positive on Wednesday, but gained less than 1%. Alphabet shares were flat for the day, while Amazon lost about 0.5%.”This is a big shift from what we have seen YTD,” the note said. —Pound
8:42 am: Peloton under pressure after earnings, shares fall 7%
Shares of Peloton slid 7% in premarket trading after the company reported widening losses and slowing revenue growth in the second quarter. The company lost $55.4 million for a loss of 20 cents per share. This was smaller than the 36 cent loss analysts had been expecting, according to estimates from Refinitiv, but was larger than the $55.1 million the company lost in the same quarter a year earlier. Revenue rose 77% to $466.3 million, which topped Street expectations, although the pace of growth slowed from the prior quarter. The company said that connected fitness subscribers surged 96% year-over-year, but the average net monthly churn rate did tick higher to 0.74%, compared to 0.52% a year earlier. —Stevens
8:37 am: Tesla relatively calm after three crazy days
Shares of Tesla slipped about 3% in premarket trading, a relatively small move for the stock after three days in a row of crazy swings. Tesla gained 19.9% and 13.7% on Monday and Tuesday, respectively, before selling off sharply on Wednesday and dropping 17.2%. The stock has seen unusually high trading volume in those three days, each of them nearly triple Tesla’s average daily trading volume. – Sheetz
8:35 am: Coronavirus-impacted names rebounding
Hotel and cruise line companies, which took the hardest hits from the deadly coronavirus, are set to rebound in premarket trading as the broad market tries to rise for the fourth day in a row. Shares of Wynn Resorts, Las Vegas Sands are up about 1% each, while Carnival’s stock also climbed 1.1% after losing nearly 9% in the past month. Apple is also up 0.6% in premarket. The iPhone maker has shut all its stores in mainland China through Feb. 9.—Li
