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The Dow Jones Industrial Average could add more than 200 points today thanks to fleeting concerns about the spread of the novel coronavirus and a focus on earnings reports.
This morning, Chinese television media also reported that a research team at Zhejiang University has found an effective treatment for the coronavirus. However, the World Health Organization (WHO) has said that no real treatment has emerged for the virus just yet. More on these developments below.
But first, here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's most important market events and stocks. We'll also discuss the stories that slipped under the radar of the mainstream financial press on Wednesday.
The Top Stock Market Stories for Wednesday
- This morning, the total number of confirmed coronavirus cases topped 25,000. The Trump administration said that the United States is working closely with Chinese officials to contain the spread of the virus. As of this morning, China said that the virus has killed 490 people. Despite fleeting concerns about the coronavirus, U.S. companies continue to state that it could impact their bottom line. This morning, Nike Inc. (NYSE: NKE) said that the virus will have a "material impact" on its Chinese operations. Meanwhile, Princess Cruises has quarantined 3,700 passengers and crew for two weeks after 10 passengers in Japan tested positive for the virus.
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- Meanwhile, U.S. President Donald Trump delivered the State of the Union Address Tuesday night. The President touted the state of the economy, the administration's tax cuts, and other policy matters. However, the fireworks came and went. Trump refused to shake the hand of Speaker of the House Nancy Pelosi, gave a Presidential Medal of Freedom to Rush Limbaugh, and ended his speech while Pelosi ripped her draft to shreds behind him.
- Finally, markets are paying close attention to job growth in the United States. This morning, ADP and Moody's Analytics reported that private payrolls increased by 291,000 in January. That figure is the best monthly gain since May 2015. That figure was well above the consensus forecast of 150,000 from economists. Investors will not look forward to Friday's jobs report form the Department of Labor.
Stocks to Watch Today: DIS, F, TSLA
- Shares of The Walt Disney Co. (NYSE: DIS) are moving higher after the company reported earnings Tuesday. The entertainment giant beat both top-line and bottom-line earnings expectations. Although the company reported it had added a staggering 25 million subscribers to its streaming rolls, the firm is facing a $175 million hit to its theme parks due to the coronavirus. DIS stock is up 0.5% this morning.
- Shares of Ford Motor Co. (NYSE: F) were off nearly 8% this morning after the iconic auto company reported earnings.
- Shares of Tesla Inc. (NASDAQ: TSLA) are off more than 2.4% after Canaccord downgraded the stock this morning to a "Hold" rating. The parabolic rise of Elon Musk's electric vehicle company has seen its stock jump by 100% to start the year. Short sellers like David Einhorn have been on the losing end of one of the most irrational stock surges in recent memory. Shares have exploded since Rob Baron suggested that the company could generate $1 trillion in revenue in 2030.
- On the earnings front, look for reports from Spotify Technology SA (NYSE: SPOT), GrubHub Inc. (NASDAQ: GRUB), GoPro Inc. (NASDAQ: GPRO), General Motors Co. (NYSE: GM), Merck & Co. Inc. (NYSE: MRK), and Fox Corp. (NYSE: FOXA).
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.