FOX Business’ Charlie Gasparino says coronavirus won’t have a ‘major impact’ on corporate earnings and the U.S. economy.
U.S. equity markets reversed course Tuesday, rebounding from a major selloff in the previous session, as investors looked past the continued spreading of the coronavirus outbreak in China.
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The Dow Jones Industrial Average was higher by 200 points, or 0.7 percent, as it looked to put an end to its five-day skid. The S&P 500 and Nasdaq Composite have both fallen for two straight sessions. All three of the major averages fell by at least 1.6 percent on Monday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 28791.77 | +255.97 | +0.90% |
| SP500 | S&P 500 | 3279.41 | +35.78 | +1.10% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9268.948384 | +129.64 | +1.42% |
China said on Tuesday that were 4,515 confirmed cases of the virus. Almost all of the 106 deaths have been in Hubei province, where the outbreak began.
Airlines, cruise operators and casinos snapped back after suffering steep losses on Monday while drugmakers and medical mask makers gave up a large portions of their recent gains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 26.66 | +0.55 | +2.11% |
| CCL | CARNIVAL CORP. | 46.41 | +1.14 | +2.51% |
| WYNN | WYNN RESORTS LIMITED | 125.84 | +1.95 | +1.57% |
| NVAX | NOVAVAX INC. | 7.37 | -1.13 | -13.30% |
| LAKE | LAKELAND INDS | 14.55 | -1.55 | -9.63% |
Earnings continued to roll out with Dow components United Technologies, 3M and Pfizer all reporting ahead of the opening bell.
United Technologies reported sales rose 16 percent year over year in 2019 to a record of $77 billion.
3M’s fourth-quarter earnings fell short of Wall Street estimates and the conglomerate forecast 2020 profit below expectations due to weaker demand from China.
Pfizer revenue slumped after the drugmaker lost exclusivity for its pain drug Lyrica, pushing sales in its Upjohn unit, which also includes Viagra, down by 32 percent to $2.16 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UTX | UNITED TECHNOLOGIES CORPORATION | 153.69 | +2.67 | +1.76% |
| MMM | 3M COMPANY | 166.21 | -9.42 | -5.36% |
| PFE | PFIZER INC. | 38.44 | -1.73 | -4.30% |
Elsewhere on the earnings front, Lockheed Martin delivered better-than-expected full-year results and raised its sales forecast.
Harley-Davidson’s U.S. vehicle sales fell 3.1 percent to 20,204 units, making for the smallest drop in 12 quarters. However, the company forecast 2020 motorcycle revenue of $4.53 billion to $4.66 billion, versus the $4.57 billion from 2019.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORPORATION | 435.41 | +3.03 | +0.70% |
| HOG | HARLEY DAVIDSON | 33.41 | -1.43 | -4.10% |
Beyond Meat slipped after J.P. Morgan Chase cut its outlook to “neutral,” saying the good news is already priced in.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BYND | BEYOND MEAT INC. | 119.21 | -5.54 | -4.44% |
Looking at commodities, West Texas Intermediate crude oil was on track for its first gain in six days, trading up 1 percent near $53.70 a barrel, and gold was down 0.6 percent at $1,575 an ounce.
U.S. Treasurys slid, sending the yield on the 10-year note up by 3.6 basis points to 1.641 percent.
In Europe, Britain’s FTSE and France’s CAC were both up 1 percent and Germany’s DAX was higher by 0.8 percent.
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Overnight, Japan’s Nikkei shed 0.6 percent while China’s Shanghai Composite and Hong Kong’s Hang Seng remained closed in observance of the Lunar New Year.
