Global Markets Edge Lower, Coronavirus Fears Linger, Chinese Inflation Spikes

The U.S. Market Is Mostly Flat In Early Trading

The U.S. market is mostly flat in early trading as investors fret over the spreading coronavirus. The number of infected has risen to 40,170 while the death toll exceeds that of SARS. Over the weekend, Chinese President Xi Jinping pledged his country to fight the disease and that lent some support to the equities market. The Dow Jones Industrial Average is leading the losses down -0.12%. The S&P 500 and NASDAQ Composite are both down about half that amount.

In stock news, attention is focused on the potential economic impact of the coronavirus outbreak. Chinese factories are supposed to reopen on Monday but the announcement may be more symbolic that not. Most businesses are expected to remain shuttered and may disrupt the global supply chain. The province of Hubei, where the virus originated from and the most heavily hit, is a major manufacturing center.

Restaurant Brands, the owner of Popeyes, beat on the top and bottom lines. The company’s so-called “chicken” war with Wendy’s and Bojangles helped pad the company’s results. Shares are up 2.0% in the premarket. Shares of Allergan are also moving higher in the early session after it beat on the top and bottom line.

EU Equities Move Lower

The EU equities market is moving lower at midday. The coronavirus and its impact to global supply chains is the primary reason. The CAC is down about -0.45% while the DAX and FTSE trail with losses of -0.38% and -0.28%. With China as its biggest trading partner, the EU is especially vulnerable to disruptions within the Chinese economy.

In stock news, embattles NMC Health is moving higher after it revealed approaches from two private equity firms. The company is still ensnared with a legal battle versus short-sellers claiming bad accounting practices. In other news, people close to NMC are under review for misreporting their disclosures. Shares of Daimler are flat at midday after the company announced job cuts and other cost-saving efforts. Exor is moving higher by 5.5% after it announced the possible divestiture of PartnerRE.

Asia Mostly Lower, Virus Causes Inflation To Surge

Asian markets are mostly lower at the end of Monday’s session. The Nikkei and Hang Seng are both down -0.60% while the Kospi and ASX post smaller losses. The mainland Shanghai Composite is the only index in the green, up 0.51%, after sentiment was buoyed by Xi’s pledge. On the economic front, Chinese CPI surged to 5.4% YOY and set a long-term high. The surge is due in part to the virus as well as high pork prices.

Global Markets Retreat, Recession Fear Reemerges, Labor Data Beats

The U.S. Futures Are Moving Lower

The U.S. index futures are pointing to a lower open on Friday snapping a 4-day winning streak. The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all down about -0.30% in the premarket session. The move is driven by renewed fears of economic recession, fears that have been stoked by the coronavirus outbreak. So far, more than 28,000 people have been infected with nearly 650 dead. Businesses around the world are shuttering their Chinese operations in an effort to contain the spread. Unfortunately, this is aiding a slowdown in China that could infect the rest of the global economy.

On the economic front, U.S. Non-Farm Payrolls came in much stronger than expected as warmer weather spurred hiring in key areas. The headline 225,000 new job creation was accompanied by upward revisions to the previous two months and an uptick in labor force participation. On the earnings front, wages grew 0.25% in the month and are up 3.1% YOY. In stock news, shares of Nestle are moving higher following its EPS report. The candy maker beat top and bottom-line consensus estimates and upped it divided more than expected.

European Markes Are Lowe At Midday

The EU indices are lower at midday as they track Asian markets lower. The FTSE is in the lead with a decline of -0.61% while the DAX is down -0.55% and the CAC -0.32%. Aiding the decline is a downgrade to Chinese GDP outlook. Analysts are now looking for a 5.0% GDP growth in 2020, down 0.7% from the previous consensus estimate. In other economic news, the German Industrial Output figure for January was -3.5% and well below the consensus.

Share of Credit Suisse are among the most active in today’s session. The Swiss banking giant’s CEO has decided to step down amid a spying scandal. Shares of the stock fell more than -2.0% in early trading but clawed back some of the loss by midday. Shares of Lorcal are also moving but in the opposite direction. the company reported a better than expected revenue increase for the 4th quarter and sent the stock up 0.80%.

Asian Mixed, Shanghai Moves Higher

Shares in Asia are mixed at the end of the session on Friday. The Shanghai Composite is the only index to post a gain for the day and that 0.33%. Others in the region posted losses in the range of -0.19% to -0.72% led by the Korean Kospi. Korean shares were hurt by news out of the automaker industry pointing to reduced production and delays related to the Chinese viral outbreak. Casino’s are also moving lower, more than -1.0% on average, after Macau shut down its gaming industry in an attempt to further stop the spread of coronavirus.

China Cuts Tariffs, Risk Assets Move Higher, Coronavirus Risk Remains

The U.S. Futures Are Up In Early Trading

The U.S. futures are up in early trading following news China is cutting tariffs. China’s Ministry of Finance announced overnight that it would cut tariffs on $75 billion worth of U.S. goods by 50%. The cut will take effect next week and are intended to advance the healthy and stable development of trade. The Dow Jones Industrial Average, NASDAQ Composite, and S&P 500 are all up about 0.40% in the premarket session.

Meanwhile, traders are still eyeing developments related to the coronavirus outbreak. The death toll has risen near 600 with more than 28,000 cases. Companies like Tesla and Disney are shuttering operations and warning of a significant impact on first-quarter earnings. The risk for traders now is in the economic impact of the virus since it appears containment is working. The question that needs to be answered is how long China’s economy will be shut down and if the virus will reappear once China goes back to work.

In stock news, shares of Tyson and Kellog are both down hard in early trading after reporting weaker than expected results. Kellogs leads with a loss of -6.0% after offering weak guidance, Tyson is down about half that on poor results. In other news, Bristol Meyers is up 3.0% after it beat top and bottom-line estimates. On the economic front, jobless claims fell more than expected and are hovering just above the long-term low. Fourth-quartervproductivity and labor costs rose less than expected at 1.6% apiece.

European Markets Are Up At Midday

The European indices are broadly higher at midday following the positive trade development. The reduction of tariffs on U.S. goods will help free up trade on a global basis as the supply chain becomes unburdened. Europe’s benefit will come in the form of increased trade with China, its largest trading partner, when (if) China’s economy reaccelerates. The DAX and CAC are both up about 0.65% while the FTSE is up about half that.

In other news, the meeting of OPEC+ has been extended for another day. The meeting is expected to end with a production cut intended to support oil prices. WTI and Brent are both hovering near long-term lows waiting for the decision. In stock news, shares of banks are in the lead following earnings from Soc Gen. The lender missed estimates but announced a new buyback plan that sent its shares up 1.2%. Deutsche Bank is leading the group with a gain of 9% after Capital Group revealed a 3% stake.

Asian Markets End Higher In Thursday Trading

Asian markets are broadly higher on Thursday following the trade tariff news. Mainland Chinese stocks surged the most with the Shenzen component of the Shanghai Composite advancing nearly 3.0%. The Shanghai Composite is up 1.72%. The Japanese Nikkie, Hang Seng and Kospi advanced 2.38% to 2.88% while the ASX gained a more tepid 1.0%. Trading in Australia was hurt by weaker than expected December retail sales figures.

 

Equities Rise, Job Creation Surges In January, EU Data Surprises

The U.S. Futures Are Higher In Early Trading

The U.S. futures are indicating a higher open in early Wednesday trading. The move is driven by better than expected earnings and a shot of good news out of China. Unconfirmed reports from within China say researchers have found a viable treatment for the Novel Coronavirus. If true, it could mean a quick end to the rapidly spreading outbreak. There are now over 25,000 cases globally with nearly 500 dead. The World Health Organization issued a statement to counter the news stating there is no known treatment for this disease.

The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are indicated to open about 0.70% higher. In stock news, shares of Disney are fractionally higher in the premarket action. The global entertainment giant beat consensus estimates for 4th quarter earnings but warned the coronavirus could impact revenue by $175 million. Shares of Ford are moving lower after the iconic automaker missed expectations and gave weak guidance for the coming year.

On the economic front, the ADP employment report far surpassed expectations. The headline figure of 291,000 was nearly double the consensus and showed broad gains in labor. Later in the session traders will be looking for the final read on January PMI and services sector ISM.

European Markets Move Higher

The EU indices are broadly higher at midday on Wednesday. The DAX is in the lead with a gain of 1.45% following better than expected PMI data. The EU Composite PMI came in at 51.3 and a five-month high while in Germany it came closer to 55. The CAC is up about 1.10% while the FTSE is up 0.75%. Autos are among the biggest gainers with average advances greater than 2.0%.

In stock news, shares of lender BNP are moving higher after the company reported results. Quarterly revenues were better than expected but guidance was a bit weak but not as weak as some had thought. Danske Bank reported flat revenue and EPS but warned this year would not be so good. Shares fell -0.90% on the news. Infineon is among the days biggest movers with a gain of 9.25% following it’s EPS beat and guidance upgrades.

Asian Markets In Rebound Mode

The Asian markets are broadly higher on Wednesday as improving sentiment drives market action. The Shanghai Composite is today’s leader with a gain of 1.25% while the Nikkie follows close behind. The Hang Seng, ASX and Kospi all posted gains in the range of 0.40%.

The biggest news in the region is the coronavirus. Business and travel continue to be impacted and new closings were announced today. Hyundai is only one major manufacturer to shutter its plant. The PBOC injected $242 billion of liquidity into the system over the last two days in an attempt to counter the impact of the virus.

Equities Rebound, Coronavirus Fears Ease, China Plans Stimulus

The U.S. Futures Are Up In Early Trading

The U.S. index futures are up in early trading pointing to a solidly higher open for the equity markets. The Dow Jones Industrial Average and S&P 500 are both up about 1.25% while the NASDAQ leads them higher. The tech-heavy NASDAQ Composite is up 1.50% aided by strength in Tesla. Shares of Tesla surged another 13% in early action following Monday’s near-20% gain. The electric car maker has received another round of analysts upgrades with price targets in the $800 range.

In health news, the coronavirus death total is not over 425 with the first reported death outside of mainland China. A man in his thirties was reported to have succumbed to the virus in Hong Kong. There are now over 20,670 known cases.

In earnings news, shares of Google parent Alphabet are down more than -3.0% in early trading. The Internet giant reported mixed results on weaker than expected ad revenue. Shares of Ralph Lauren are up more than 6% after the fashion brand beat consensus estimates. Royal Caribbean also saw its shares move higher after beating on the top and bottom line.

EU Markets Rise, Brexit Drama Begins To Heat Up Again

The EU markets are broadly higher at midday despite signs of a contentious Brexit negotiation period this year. The DAX, CAC and FTSE are all up about 1.4% at midday. On Monday, the EU and UK laid out their respective goals for the final Brexit negotiation and obvious hurdles have already arisen. On the brighter side, there are also some notable areas of common ground.

In earnings news, shares of AMBU are up 20% after reporting results. The health product company saw an unexpected double-digit rise in quarterly earnings. Shares of Micro Focus are moving in the opposite direction after its chairman resigned citing difficult conditions. Iconic beer-maker Carlsberg reported inline with expectations but gave favorable guidance and shares rose 2.8%.

Asian Markets Rebound In A Session of Cautious Trading

Asian markets rebound in Tuesday’s session although there was an air of caution. the Korean Kospi led with an advance of 1.84% while markets in China and Hong Kong gained about 1.30%. The Nikkei and Australian ASX saw smaller advances but still posted gains. In Australia, the RBA decided no policy change was needed. The RBA’s governor says an extended period of low rates is needed to bring the nation to full-employment.

Equities Rebound, Coronavirus Spreads Further, Earnings Season In High Gear

The U.S. Futures Are Up In Early Trading

The U.S. futures are up in early trading as equities appear to be rebounding from last week’s plunge. While early action is bullish, traders are warned to be cautious, the black swan coronavirus event is not yet over. China now reports more than 360 deaths as the number of infected continues to rise. The first death outside of China was reported over the weekend as well, this one in the Philippines. The NASDAQ Composite is in the lead with a gain near 0.60% while the Dow Jones and S&P 500 are both up about 0.55%.

In other news, there are a number of potentially market-moving events slated for the week. Topping the list is the first Democratic Primary in the 2020 Presidential Election. Bernie Sanders has unexpectedly risen to rival front-runner Joe Biden putting extra importance on the evening’s results. If Bernie Sanders emerges as the new front-runner equity markets could pull back sharply. Also on tap, another week of peak earnings. This week look out for reports from Google, Costco, and Conoco-Phillips. On the economic front, ISM figures for January are expected at 10 AM.

Europe Cautiously Higher, Brexit Phase 1 Is Complete

The European indices are moving higher at midday on Monday. The FTSE is in the lead with an advance of 0.45% following the smooth phase 1 Brexit last Friday. The UK now has 11 months to negotiate a full deal with the EU, based on the last round the negotiations are certain to be difficult. The French CAC is up about 0.40% while the DAX trails at 0.25%.

In stock news, shares of Ryanair are up 5% at midday after the company reported quarterly results. The air carrier reports better than expected top and bottom line income and upped its full-year guidance. At the other end of the spectrum, Shares of Julis Baer are down nearly -6.0% after it missed results and announced a new cost-cutting review. On the economic front, EU manufacturing PMI came in at 47.9 and the highest level in 9 months. The downside is that activity continues to contract.

Asian Markets Lower, China Re-opens And Falls 8%

Most indices in Asia closed lower on Monday and led by China. China’s markets reopened for the first time since the start of the Lunar New Year holiday and fell -8.0%. The decline is large but less than feared. Elsewhere in the region, losses were led by the ASX 100 and its decline of -1.24%. In economic news, the Chinese Caixin small-cap PMI came in at 51.1 and shows expansion within the economy. The bad news is that PMI came in weaker than expected and down from the previous month.

Global Markets Edge Lower, Coronavirus Still Centerstage, Mixed Data Clouds Sentiment

The U.S. Futures Are Dow In Early Trading

The U.S. futures are indicating a lower open for the major indices in early Friday trading. The Dow Jones Industrial Average and S&P 500 are both down about -0.40% in the premarket session, the NASDAQ Composite about -0.30%. Sentiment is dampened by the coronavirus outbreak that continues to spread. There are now 9700 confirmed cased globally with the first two showing up in India. The number of deaths has risen to 213 and is expected to rise.

Aside from the risk to global health, traders are concerned about the risk to the global economy. China has already clamped down on travel and other countries are doing the same. yesterday, the WHO declared a Global Health Emergency so we can expect travel to be curtailed globally. Companies like Starbucks and Caterpillar are already warning investors about possible impact to earnings and other risks.

In earnings news, Amazon smashed expectations for revenue and earnings. The company reports solid increases in YOY sales and notable strength in the Amazon Web Services segment. Shares are up 11.0% on the news. Caterpillar also reported better than expected earnings but shares fell when it warned investors about 2020 outlook. Inflation data shows the U.S. consumer ended 2019 on solid footing. Personal income rose 0.2% and spending 0.3% adding upward pressure to YOY comparisons.

European Markets Are Down At Midday

The EU markets are down at midday on concerns the coronavirus will continue to spread. There are now two cases in the UK as well.  The DAX and FTSE are both down about -0.35% to -0.40% while the FTSE lead with a loss of -0.75%. The FTSE is under added pressure because of today’s Brexit. After 3.5 years of political wrangling and uncertainty, the landmark event has arrived. The Brexit occurs tonight at 11 PM London time.

In stock news, basic resources and energy are leading on a sector basis with declines of -1.0%. All sectors are moving lower but today’s biggest loser is Banco de Sabadell. The bank reported a surprise loss in the 4th quarter and sent shares plummeting. At the other end of the spectrum, Danske Bank shot up by 5.7% on word the U.S. will have a hard time levying fines against it.

Asian Markets Are Mixed, China Still Close

Asian markets are mixed at the end of the day on Friday. The Hong Kong Hang Seng and Korean Kospi are both down, -0.52% to -1.35%, while the Nikkei and ASX are both moving higher. The Nikkei is the strongest performer with an advance of 0.99% on strength in tech. Shares of Tokyo Electronics are leading the surge with a gain of 2.3%. In China, official PMI figures show the manufacturing economy neither grew nor contracted in December because PMI is 50.0.

Equity Markets Fall, U.S. GDP Better Than Expected, Corona Virus Deaths Rise

The U.S. Futures Are Down In Early Trading

The U.S. futures are down in early trading after China reported an increase in corona virus-related deaths. The number of cases is now more than 7700 with over 170 deaths. India is the latest to report a confirmed case. the Dow Jones Industrial Average was down as much as -0.80% in early trading but narrowed the loss after the 4th quarter GDP figures. The S&P 500 is also indicated down about -0.70% while the NASDAQ Composite trails with losses closer to -0.50%.

In economic news, U.S. 4th quarter GDP came in better than expected at 2.1%. The news helps relieve some fear but traders are warned, the data is rear-looking and does not take the coronavirus into account. While the spread of the disease is slowing it is not contained and will have an impact on global GDP. Starbucks is the most noteworthy to mention the virus stating it had closed half its China stores and altered plans to raise guidance.

In earnings news, a raft of top-rated U.S. companies reported earnings since the close of Wednesday trading. While results are mixed, the general run is better than expected. Tesla shares are up nearly 9.0% in the premarket session after it reported the second consecutive quarter of profits. The company is on track to accelerate revenue and EPS this year provided the coronavirus outbreak does not shut down the Chinese economy.

European Markets Fall, Manufacturing Sentiment Rises

The European equities markets are moving lower at midday. The French CAC is in the lead with a loss of -1.60% while the FTSE and DAX are close behind. The move is driven by the spreading Wuhan Virus but the focus is not only there. The Brexit will occur tomorrow at 11PM London time and may send shockwaves through the global economy. In economic news, EU manufacturing confidence hit a five-month high and point to a solid start to 2020.

In stock news, shares of H&M are up about 9% at midday. The fashion house reported its first profit in years and a reshuffle to management that bodes well for shareholders. Deutsche Bank is also moving higher after it reported earnings. The bank reported an uptick in spending related to restructuring efforts and shares gained 1.8%. Energy giant Royal Dutch Shell, however, saw its shares decline after it reported a sharp decline in profits and a slower pace of share buybacks.

Asian Plunges, Coronavirus Threatens 2020 GDP Outlook

Asian markets plunged in Thursday trading due to threats the coronavirus will have a deep impact on economic activity this year. All major trading nations have reported cases of the outbreak even as officials clamp down on travel. The Shanghai Composite and Hong Kong Hang Seng both shed about -2.70% for the session while others posted less severe declines. Shares of travel and leisure stocks are the worst hit with losses in the range of -2.0% to -5.0%.

U.S. Indices Edge Higher, Wuhan Virus Spreads, Earnings Season Hits Peak

The U.S. Futures Are Up In Early Trading

The U.S. futures are indicating a higher open for the major indices on Wednesday. The moves are small and led by the NASDAQ Composite. The tech-heavy index is up about 0.50% after reports from Apple smashed expectations. The S&P 500 and blue-chip Dow Jones Industrial Average are both up about 0.40%.

Apple blew past analysts consensus estimates for revenue and earnings as strength in core segments manifests itself. Sales of iPhones topped expectations bit it was strength in wearables that caught investor attention. Wearables are now about one-third of revenue making the company more diversified and better suited to weather storms.

Shares of McDonald’s are volatile in early action. The stock was first up on news it beat revenue expectations on better than expected comp-store sales. Later in the early premarket session shares reversed the gains to show a loss because rising costs cut into profits. So far, about 25% of the S&P 500 has reported and 73% of those have beaten consensus.

Traders are on alert for the next FOMC statement. The FOMC meeting begins today and will result in a policy statement tomorrow afternoon. There is little expectation for a policy change but there is a press conference. Traders will be listening carefully for hints about future policy changes and the ongoing repo program.

European Stocks Edge Higher

European markets are edging higher at midday. The CAC is in the lead with a gain of 0.45% while the DAX and FTSE trail. The FTSE is up a mere 0.10% with the Brexit only two days away. In stock news, basic resources are leading today’s action with an average advance of 1.25%.

Shares of Quilter are at the top of the rankings with an advance of 6.6%. The money manager reported a 17% YOY increase in funds under management. Tenemos is also moving higher. The software company announced a partnership with Google Cloud and shares advanced 5.25%. Santander reported better than expected earnings and saw its shares rise 4.6%.

Asia Markets Mixed, Hong Kong Reopens After Holiday

Asian markets are mixed after the Wednesday session. The Hong Kong Hang Seng is the only index to decline and it was a significant -2.82%. Other indices continue to rebound from losses posted on Monday. The Nikkie advanced 0.71% while the ASX and Kospi posted slightly smaller gains. Markets in mainland China remain closed for the Lunar New Year Holiday. There are now more than 6,000 cases of Wuhan Virus in China with 132 dead, more than the SARS epidemic.

Markets Rebound, Wuhan Virus Spreads, Earnings Season Hits High Gear

The U.S. Futures Are Up In Early Tuesday Trading

The U.S. futures market is indicating a slightly higher open for the market on Tuesday. The tech-heavy NASDAQ Composite is in the lead with a gain of 0.45% but I wouldn’t trust it. New from China is the Wuhan Virus continues to spread. There are now more than 4500 infected and 106 dead. With cases in Japan, Southeast Asia, Korea, Australia, the EU, and the US it is certain both the number of infected and dead will rise.  The S&P 500 and Dow Jones Industrial Average are both up about 0.25%.

In stock news, reports from major S&P 500 companies are coming in fast and furious. This is the busiest week of the season, there are 147 S&P companies and 14 Dow Components. Shares of Pfizer, 3M and Harley Davidson are all moving lower after missing their consensus estimates or offering weak guidance. Harley Davidson is in the lead as weak sales in the U.S. dragged on results.

In economic news, durable goods orders came in well above expectation but there is a catch. The 2.4% headline figure beats the -0.2% expected but is up mostly only transportation-related spending. Ex-item’s, core business-spending is down -0.1%. Later in the session traders will be on the lookout for Consumer Confidence.

European Markets Up, Brexit Is In Sight (Almost)

The European markets are cautiously higher at midday on Tuesday. The CAC and FTSE are both up about 0.50% while the DAX lags with a gain of 0.40%. Telecoms are among the day’s biggest gainers with average advances of 0.80%. Tech is among today’s hardest hit with losses in the range of -1.10%.

In earnings news, shares of SAP and Burberry are trading lower after disappointing investors. SAP raised its revenue and earnings guidance but not enough to meet expectations and shares fell -2.7%. Burberry lost -3.5% on concerns of its exposure to Asia and the coronavirus.

In politics, the long-awaited Brexit is slated to occur on Friday. This is the first of two Brexit’s and paves the way to final negotiations. The UK is pushing for a free or near-free market environment while the EU negotiator says it won’t happen. According to him, the UK has underestimated the EU in that regard.

Asian Markets Falter As Virus Outbreak Spreads

Asian markets moved lower on Tuesday after the news China’s death count had risen. The South Korean Kospi, closed Monday for holiday, fell more than -3.0% while others shed less robust amounts. Japan’s Nikkei fell -0.55% while the Australian ASX fell -1.35%. Traders in Australia are worried about the impact to tourism markets, China is Australia’s #1 tourist market and traveling has been severely curtailed. Markets in China and Hong Kong remained closed for Lunar New Year.

Wuhan Virus Spreads, Global Markets Fall, Earnings Season Hits Peak

The U.S. Futures Are Down Sharply In Early Trading

The U.S. futures are down sharply in early Monday trading. The tech-heavy NASDAQ Composite is in the lead with a loss of -1.90% because of its heavy exposure to overseas markets.  The Dow Jones Industrial Average and S&P 500 are both down with losses in the range of -1.60%.

In health news, the number of confirmed cases of Wuhan Virus in China has risen to over 2,800. The number of deaths is now over 80 with as many as 500 critical cases. The number of confirmed cases in the U.S. has risen to 5. Experts are unsure just how bad the epidemic will get but it is certain to get worse before it gets better.

In stock news, shares of travel and leisure stocks are among the hardest hit. Airlines American, Delta, and United are all down more than -3.0%. Shares of Wynn and Las Vegas Sands are both down more than -6.0%. Other travel industries are down less but losses are running near -2.0%. Other stocks with international exposure are also moving lower with Apple, Disney and Nike all down more than -2.0%.

On the earnings front, this is the busiest week of earnings this cycle. Traders are on the lookout for roughly 200 reports from S&P 500 companies including several Dow components.

European Markets Are Down Sharply At Midday

The EU markets are down sharply at midday with broad losses across all sectors and industries. The German DAX is in the lead with a decline of -2.35% but both the FTSE and CAC are down more than -2.25%. The spreading Wuhan Virus is the root cause, it has introduced maximum uncertainty to the market and could derail 2020 economic outlook. On the economic front, the Ifo Institute says the first quarter 2020 GDP will grow about 0.20%.

In stock news, shares of airlines AirFrance KLM and British Airways parent are down about -6.0% in early trading. Shares of SEB, a French appliance maker, are also down about -6.0% but for different reasons, a downgrade from HSBC. At the other end of the spectrum shares of NMC Health are up more than 3.0%. A major investment firm increased its stake giving the embattled company a much-needed vote of confidence.

Japan Falls, Most Of Asia Closed For Holiday

Most markets in Asia are closed on Monday and for the week because of the Lunar New Year. The one that is open, the Japanese Nikkei, fell hard on the Wuhan Virus news. Down more than -2.0% at the end of the session it is likely to continue falling this week. Shares of travel and leisure companies were hit the hardest, losses in the group ranged -3.0% to -7.0%.

Market Trading At New Highs, Virus Fears Ease, EU Data Reassures Investors

The U.S. Equities Market Is Trading At A New High

The U.S. equities market is trading at a new all-time high in the premarket session. Futures contracts on the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all indicated to open with gains near 0.30%. If the market were to close at this level it would be a new all-time closing high, if the market moves up more than a point before the close it would be a brand new all-time high. The move is driven by relief the Wuhan Virus is not yet a global health crisis but risks remain.

The number of cases of Wuhan Coronavirus has risen to 830+ with more than 25 deaths. There are now 14 cases outside of China including South Korea, Japan, and the U.S. The number of U.S. cases has grown to a possible two.

In stock news, shares of American Express are moving higher after the consumer credit company reported earnings. The company beat on the top and bottom lines as strength in fees and cardholder spending drive results. Shares of Intel are also moving higher. The iconic chipmaker beat on the top and bottom line on strength in personal computing and data center demand. Intel also provided favorable guidance and raised the dividend sending shares up nearly 5.0%.

EU Markets Rise, Data Weakens But Reassures Markets

The EU markets are moving higher at midday on Friday following the World Health Organization’s decision not to declare the Wuhan Virus a global emergency. The UK FTSE 100 is in the lead with a gain near 1.60% while the DAX follows closely at +1.50%. The CAC is also up more than 1.0% but barely.

On the economic front, PMI from across the region continues to support expansion. The EU composite flash PMI for January held steady at 50.9, showing expansion but slowing from the previous month and missing consensus. Some strength in services was offset by weakness in manufacturing. Manufacturing PMI within the EU came in at a contractionary 47.8, up from the previous month and better than expected.

In stock news, Virgin Money rose 5.7% after the company announced its chairman of the board would retire. The change is expected by mid-2021 and is well-received by the market. Shares of Ipsen are moving lower after halting dosing in one of its key drug trials. Shares are down -22% on the news.

Asian Markets Prep For Lunar New Year

Markets in China and South Korea are closed on Friday as traders prep for Lunar New Year. The holiday kicks off this weekend and is expected to impact market activity for at least a week. The Nikkei, Hang Seng, and ASX are all up less than 0.15% at the end of the session.

Markets Rebound, China Plans To Contain Virus, Trade Focus Turns To EU

The U.S. Market Is Up In Early Trading

The U.S. equity market is indicated to open higher in early Wednesday trading. The rebound is led by the NASDAQ Composite which is looking at a 0.70% gain at the open. The S&P 500 and Dow Jones Industrial Average are trailing with gains near 0.35%. The move is driven by relief China is preparing efforts to contain the deadly new virus that has emerged. Traders should be cautioned, we may not have heard the last of this outbreak, there is still risk to the market.

In stock news, the earnings season is well underway with roughly 10% of the S&P 500 reporting. So far, 75% of those who have reported have beaten the consensus estimate. IBM tops today’s news after it beat on the top and bottom lines. Growth was driven by the addition of Redhat and is expected to continue this year. The tech-leader upped its guidance on the strength and saw shares rise 4.0%. Netflix also reported since yesterday’s close. The leader in digital streaming grew revenue more than expected, posted better than expected international subscriber growth, and saw its shares rise 2.0%.

European Markets Are Mixed, Traders Are Wary Of China’s New Virus

The European markets are mixed at midday. Traders in the region are wary of China’s new virus and the impact it may have on global economic activity. The DAX is leading advancing markets with a gain of 0.12% while the FTSE 100 trails with a loss of -0.30%. The CAC is splitting the difference hovering near the break-even level.

The Davos conference is still underway. Today’s news includes remarks from President Donald Trump concerning EU trade relations. He said, following a meeting the EU president, the EU has no choice but to agree to a new trade deal. If not, the U.S. will raise tariffs on European autos and other items.

In stock news, shares of financial services stocks are up nearly 1.0% while banks are down -0.30%. Autos are also moving lower, down about -0.30%, on the Trump comments. Berkely Group is among today’s hottest issues, up 5% after it announced an increase of shareholder returns over the next few years. Italian banks were hardest hit, down more than -3.0%, after the resignation of a key member of the government.

Asia Markets Rebound, Hong Kong Leads

Asian markets rebound in Wednesday’s session after falling hard the day before. The Hong Kong Hang Seng is in the lead with a gain of 1.27% while others in the region posted smaller advances. The Korean Kospi gained 1.23% after the Bank of Korea revealed 4th quarter GDP grew faster than expected and set a three-year highs. The Shanghai Composite posted the smallest advance, only 0.28%.

Markets Pull Back From Highs, Davos Begins, Sickness In China Hurts Sentiment

The U.S. Futures Are Down In Early Trading

The U.S. futures are down in early trading as risk-on sentiment reverses. Topping today’s news are reports out of China a new virus could dampen Lunar New Year celebrations. The flu-like coronavirus can cause pneumonia in humans and has already killed six. Chinese officials are worried the illness will spread over the holiday because 100s of millions of people are expected to travel. The Dow Jones Industrial Average is down -0.20%, the S&P and NASDAQ Composite are both down more than -0.30%.

In other news, the Senate has laid out the rules for the impeachment trial of Donald Trump. McConnel will allow voting on documents and witnesses, putting a damper on hopes for conviction. In trade news, Steve Mnuchin says the Phase 2 Trade Deal may not remove all the tariffs that are in place. This news is another blow to those hoping trade would return to normal soon. At this pace, it will be at least three phases of negotiations and many years before all issues are resolved.

There is no economic data today but traders are on alert for central bank news. The FOMC is meeting next week as is the BOE. The BOJ issued their statement today, no change to policy and positive growth outlook through 2021, while the ECB is slated to issue theirs later this week. On the earnings front, the 4th quarter earnings cycle kicks into high gear this week.

European Markets Fall, Travel Stocks Lead

European stocks are falling at midday on Tuesday after the news of China’s health-problem emerged. The FTSE is in the lead with a loss of -0.90% while the CAC and DAX trail. The CAC is close behind with a loss of -0.80% while the DAX is posting a more tepid -0.15% loss. While the Chinese health scare is worrying traders, the big news today is from Davos. The annual economic forum begins today and was kicked off by speeches from Donald Trump and Greta Thunberg. The one advocated for protectionist national policies, the other for quicker action regarding climate change.

In stock news, shares of UBS are down -5.0% after the banking giant missed top and bottom-line expectations. Shares of steelmaker Euraz are also down -5.0% after disappointing investors. At the other end of the spectrum, shares of Hugo Boss are moving higher. The German fashion brand reported better than expected results and gave a favorable outlook.

Asia Plummets, Hong Kong Leads, As Illness Spreads In China

Asian markets are broadly lower at the end of the trading session on Tuesday. The Hong Kong Hang Seng is in the lead with a loss of -2.8% on word of a major downgrade. Moody’s cut the city-state’s rating to Aa2 from Aa3 citing instability within the government. Shares in Shanghai are down -1.41% due to the spreading illness within Chinese borders. More than 300 cases have been reported along with 6 deaths raising concerns of a wider epidemic. With Lunar New Year celebrations beginning soon the cause for concern is real. The Nikkei shed -0.90%, the ASX -0.19%, and Kospi -1.01%.

Phase One In The Bag, Retail Sales Rise, Traders Remain Cautious

The U.S. Futures Are Up

The U.S. futures are trading higher in early action signaling a modestly higher open for the indices. The tech-heavy NASDAQ Composite is in the lead with a gain of 0.35% while the S&P 500 and Dow Jones Industrial are close behind. The move is driven by relief the Phase One trade deal was signed. Gains are capped by uncertainty of what will happen over the next 12 months. The Phase One deal did not live up to the market’s expectations and may trigger a round of selling for the major stock indices.

What the trade deal solidifies is the terms of an uneasy truce struck last year. The truce will roll-back some tariffs but not all leaving China’s economy under pressure. China must now act on the terms in order to have other tariffs removed in the Phase Two deal. What traders need to consider now is if the Phase Two deal will end the trade war or open the door to Phase Three.

In stock news, Morgan Stanley beat on the top and bottom lines easily surpassing analyst’s expectations. Shares of the stock are up nearly 5.0% in early trading. Shares of XPO Logistics are up 20% in premarket action. The company announced the results of a strategic review that include sale of the company or partial-spinoffs to unlock shareholder value. Tesla’s shares are down almost -4.0%, the company received a downgrade from Morgan Stanley after California registrations halved.

EU Markets Edge Lower, Phase One Is Uninspiring

The EU markets are edging lower at midday as traders digest the Phase Trade Deal news. The deal alleviates much of the uncertainty plaguing the market but little else. The shackle of tariffs remains on China, the EU’s largest trading partner, so a strong economic rebound is unlikely this year. The UK FTSE 100 is in the lead in early trading, down about -0.45%, while the DAX and CAC are both down about -0.20%.

In stock news, shares of Airbus are holding steady after the company said demand was good enough to maintain its current production schedule. Investors became worried earlier this week after Boeing reported the first decline in orders in over 30 years. Shares of Pearson, and education company, are down -10% after results came in at the low end of guidance.

Asian Mostly Higher, Shanghai Moves Lower, Trade Deal In Focus

Asian markets are mostly higher at the end of the Thursday session. The Shanghai Composite is the only to post a loss and that in the range of -0.50%. The Phase One trade deal is a relief to traders around the region but uncertainties remain. The Nikkei advanced 0.07%, the Hang Seng 0.38%, the ASX 0.67%, and the Kospi 0.77%. Korea’s Samsung and Hyundai led the market with gains near 3.0%.

Anxious Markets Await Trade Deal Signing, Futures Are Flat, U.S. Data Surprises

The U.S. Futures Are Trading Flat In Early Action

The U.S. futures are indicating a flat open on Wednesday as traders await the much-anticipated Phase One Trade Deal. Chinese delegates are in Washington now and expected to sign the deal later today. The market could sell-off in the wake of the signing due to a new reality; the Phase One deal is far less than the market was expecting.

According to various sources, tariffs will not be removed with this deal. Mnuchin says the deal is enforceable, once China proves it will abide Phase Two can begin. The Phase Two deal will remove tariffs; until then China’s economy is burdened by the current load.

The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are all hovering near break-even in early trading. Shares of Target, however, are down more than -8.0% after the company reported weak holiday sales growth. Target says holiday sales rose a mere 1.4% in 2019, the consensus for 4th quarter results is +3.8%.

In economic news, Empire State Manufacturing came in better than expected. The survey index accelerated to 4.8 versus the expected 3.6. While tepid, this is the highest level since early spring 2019. On the inflation front, PPI came in at 0.1% higher than last month versus the 0.2% expected.

European Markets Are Mixed At Midday

The European markets are mixed at midday as traders wait on the Phase One deal signing. Likely an underwhelming event, there is a risk the market could begin to sell off once the deal is signed. The DAX and CAC are both down about -0.15% while the FTSE is up a similar amount. Autos are the biggest loser’s on the day, down -1.25% while healthcare stocks lead advancing issues.

In Germany, GDP came in at 0.6% for the last quarter of 2019, the slowest rate in 6 years. Even so, it is far above the negative number analysts expected early this year. Looking forward, the German export economy faces headwinds related to trade conditions the Phase One deal may not alleviate. In the UK, inflation rose only 1.3% versus 1.5% expected. The pound edged lower after the news was released.

Asia Moves Lower, Australia Bucks Trend

Asian indices are mostly lower at the end of the day on Wednesday. The Nikkei, Shanghai, Hang Seng, and Kospi are all down -0.35% to -0.55%. The Australian ASX is the only to move higher, it advanced 0.47%. All eyes are on the Phase One deal signing. Although it is not expected to satisfy expectations it will set the stage for the coming year.

Earnings Season Begins, Markets Retreat From Highs, Consumer Inflation Rises

The U.S. Market Is Flat In Early Trading

The U.S. futures market is indicating a flat to a slightly lower open in early Tuesday trading. The move comes as earnings season kicks off and on the eve of the Phase One deal signing. JP Morgan tops the headlines after reporting record revenue that beat analysts consensus estimates. Although business slowed from the prior quarter is up from last year with notable strength across the consumer segment of the business. Also notable was an uptick in bond-trading revenue.

Results from Citigroup are comparable to JP Morgan and point to strength in the U.S. consumer. Citigroup beat on the top and bottom lines and share moved up nearly 0.70%.  Wells Fargo was not so fortunate. The tarnished banking giant missed revenue and EPS estimates as litigation costs pile up. The company’s new CEO says there are opportunities to cut costs and improve operations but shares fell anyway. Wells Fargo is down about -3.5% in early market action.

On the economic front, the U.S. Consumer Price Index rose by 0.2% over the last month. This is down a tenth from the previous month but up 2.3% from last year. At 2.3% it is running above the FOMC’s 2.0%, the PPI is due out tomorrow. Later in the week Retail Sales, the Beige Book, and Building Permits will be closely watched.

EU Trades Flat At Midday

The EU markets are trading flat to slightly lower at midday on Tuesday. The CAC is leading losses with a decline of -0.14% while the DAX and FTSE hover near 0.0%. Traders are closely watching events in Washington, the signing of a Phase One deal will have far-reaching impacts. Lie He is in Washington now, he is expected to sign the deal tomorrow.

Telecom stocks are in the lead with an average gain of 0.6%. The energy sector is lagging with losses near -0.4%. Tullow Oil continues to show volatility, leading the energy sector with a loss near -5.0%. NMC Health tops the charts with a gain of 5.6%. The embattled health care company is prepping for its legal battle against short-seller Muddy Waters.

Asia Mixed With Trade Deal In Sight

The Asian markets closed mixed on Tuesday as traders await the long-anticipated Phase One Trade Deal Signing. The details of the deal are still cloudy so there is still risk in the signing, the deal may not meet investor expectations. The Australian ASX led the market with a gain of 0.85%, the Nikkie and Kospi were not far behind. The Chinese Shanghai and Hong Kong Hang Seng both fell about -0.25%.

Global Markets Move Higher, Geopolitical Risk Is Rising, Earnings Season Begins

The U.S. Futures Are Up In Early Trading

The U.S. futures are up in early trading while trading wait on key geopolitical events. On the trade front, Chinese Vice Premier Liu He is expected to sign the Phase One Deal on Wednesday. The move is affirmed by Chinese media and U.S. spokespeople but does not end the trade war. A Phase Two negotiation is expected to begin sometime over the next year and may take many years to resolve. The Dow Jones Industrial Average and S&P 500 are both up about 0.35% in premarket trading, the NASDAQ is in the lead with an advance of 0.50%.

In other news, tensions between Iran and the U.S. continue to simmer. Iran admitted to accidentally shooting down a 737 last week killing more than 130 people. Protests against Iran’s government flared up in the wake of the news and threaten to further destabilize the region.

In stock news, this week marks the start of the peak earnings season for the calendar 4th quarter of 2019. The consensus outlook is the S&P 500 will produce -1.5% earnings growth but estimates tend to rise as the earnings cycle progresses. Shares of Tesla are moving higher in early action. The stock got another thumbs up from Oppenheimer analysts and a massive upgrade in price. Their target is now double the previous and a new Wall Street high.

European Markets Are Flat In Early Trading

European indices are trading flat in early trading although there are some big moves in individual stocks. The UK FTSE 100 is in the lead with a gain of 0.35% following a round of mixed economic data. Strong construction data was offset by weakness in manufacturing and industrial output. While mixed, traders in the region are focused on the Brexit scheduled to occur in only two weeks.

In stock news, Pennon Group is moving up on news it is divesting its wastewater unit. The move will unlock shareholder value and is driving the stock up 6.0% at midday. Shares of Tullow Oil are also up about 6.0% at midday. The beaten-down energy company was upgraded to outperform at BMO.

Asia Mostly Higher, Phase One In Focus

Asian indices are mostly higher at the end of Monday’s session. The only index in the red is the Australian ASX with a decline of -0.37%. The ASX is sensitive to commodity prices and those have been volatile in recent sessions. Elsewhere in the region, Hong Kong led with a gain of 1.11%, the Korean Kospi is a close second at 1.04%. The Nikkei and Shanghai Composite both advanced less than 1.0% while traders wait on the Phase One deal to be signed.

U.S. Market At New, Dow 29,000 In Sight, Apple Suppliers Jump

The U.S. Futures Are Moving Higher In Early Trading

The U.S. futures are moving higher in early trading, extending gains set in the previous session. The Dow Jones Industrial Average is the laggard at +0.15% but within a hair of 29,000. The NASDAQ is in the lead, shares of Apple are pushing it higher after news sales in China rose 18% last month.

The market is also buoyed by improving sentiment as geopolitical tensions ease. On the trade front, the Phase One Trade Deal is set to be signed next week. On the Iran front, both sides have backed down although the region is still a powder keg ready to explode. Iran may be responsible for the downing of a passenger airliner earlier this week. The U.S. is tightening the economic screws with more sanctions. It’s only a matter of time before the two butt heads again.

In economic news, the non-farm payrolls figure was less than expected at 145,000. The unemployment rate held steady and wages grew at a 2.9% clip over last year. KB Homes reported earnings last night and disappointed investors. The company reported a smaller than expected increase in revenue but beat on the bottom line while providing a positive outlook for next year. Shares fell 1.5% on the news.

Europe Is Cautious At Midday, The Markets Are Flat

Traders in the EU are cautious on Friday despite the U.S. march to new highs. The DAX is the only index firmly in the green, it’s up 0.22%, while the FTSE and CAC are both just shy of break-even. The situation in the Mideast is only one that traders are watching, the outcome of the Phase One deal signing is another.

Closer to home, the next phase of Brexit will soon begin. The UK Parliament passed a resolution allowing the country to leave the EU at the end of this month with a deal. This is, however, only the first step in a process that will require a more comprehensive negotiation to take place. With only 11 months to reach the final deal, it is certain the negotiations will be intense.

Ryanair reported this morning, beating consensus and raising guidance. The news sent the entire airline complex higher with Easyjet and British Airways both up more than 4.0%.

Asian Markets Are Mixed, Apple Suppliers Lead

Asian indices are largely higher at the end of Friday’s session. The Korean Kospi led the move with a gain of 0.91%, the Shanghai Composite is the only to post a loss. Shares of Apple suppliers were in the lead across the region following the sales-news out of China. At the other end of the spectrum, shares of Fast Retailing fell -2.78%. The company reported weaker than expected earnings and revenue and blamed unrest in Hong Kong and a boycott in South Korea.

Markets Rebound, Tensions Ease, Brexit Drama Resurfaces

The U.S. Market Is Slightly Higher In Early Trading

The U.S. futures market is indicating a slightly higher open in early trading. The Dow Jones Industrial Average and S&P 500 are both up about 0.30% while the NASDAQ leads.  Traders are breathing a sigh of relief in the wake of last week’s killing of Soleimani. The biggest hurdle was Iran’s retaliation, a strike that turned out to be restrained in the eyes of market participants. The second hurdle, Trump, has confirmed cooling tensions but vows to enforce more severe sanctions on Iran. The question in everybody’s minds now is whether Iran is responsible for the downing of the Boeing 737 earlier this week.

In corporate news, a new survey of CFO’s shows the majority believe the economy is slowing and stocks are overpriced. In earnings news, shares of JC Penny are down more than -7.0% after missing estimates for the holiday quarter. JC Penny has been in a downward spiral since Ron Johnson was in charge and can’t seem to recover.

On the trade front, China’s media confirms Vice Premier Lieu He will travel to Washington next week. The Vice Premier is expected to sign the Phase One Trade Deal although the market still does not have the details. Today’s jobless claims data is encouraging. The initial claims figures fell and continued to trend near historic lows. Continuing claims rose over the last week reflecting the impact of post-holiday lay-offs.

EU Markets Rebound, Brexit Drama Will Soon Take Center Stage

The EU equity markets are rebounding in early Thursday trading. The DAX is in the lead with a gain of 1.15%. The German index is outpacing all other after surprisingly strong factory output data. The FTSE is up about 0.45% as Brexit drama begins to heat up. The CAC trails with a gain of only 0.21%.

In Germany, factory output expanded by 1.1% posting the largest increase in 18 months. The news is a much-needed boost to sentiment suggesting some stabilization within the EU economy. In other news, the new EU Commission President responded to Boris Johnson’s ultimatum. She says the UK will find it impossible to negotiate a full deal by the end of the year. She also says the EU/UK relationship will never be the same as it was.

Retailer Marks&Spencer shares are down -7.5% after reporting weak holiday sales and issuing poor guidance. At the other end of the spectrum, Tesco shares are up 1.7% after it reported a modest rise in holiday-season sales.

Asian Markets Rebound, Japan Leads

The Asian indices also rebound in early trading. The Japanese Nikkei is up 2.31% to lead the market, Hong Kong and Korea are both up about 1.65%. Elsewhere in the region shares in China and Australia advanced about 0.855.