U.S. stock futures are trading below fair value this morning as the attention shifts back to the coronavirus outbreak. Reports pointing to another jump in cases of the virus in China have sparked losses for global stock markets, and the Dow Jones Industrial Average (DJI) is now facing a triple-digit drop at the open. The losses look poised to spread to the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX), as stocks pull back from Wednesday’s record highs. Meanwhile, investors are monitoring a number of notable earnings releases, including a poorly received update from blue chip Cisco Systems (CSCO).
Continue reading for more on today’s market, including:
- A closer look at one energy ETF from our founder and CEO Bernie Schaeffer.
- Why this pharmacy stock could rebound soon.
- Plus, PepsiCo gains on demand for healthy snacks; Alibaba shares dip; and a penny stock surging on coronavirus news.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw 1.56 million call contracts traded on Wednesday, to 743,929 put contracts. The single-session equity put/call ratio moved to 0.48, and the 21-day moving average was 0.53.
- Earnings just came out from PepsiCo, Inc. (NASDAQ:PEP), and the beverage and snack giant is pacing for a positive open following the report. Earnings per share beat out estimates for the fourth quarter, and the company reported strong sales for its healthy snack products. PEP shares just hit an all-time high of $146.74 yesterday.
- Alibaba Group Holding Ltd (NYSE:BABA) is also in focus following its earnings update, with investors looking to gauge the impact the conoravirus outbreak may be having on the Chinese e-commerce company. However, the firm said it’s still too early to tell how the virus will affect its business. BABA is down 2.3% before the open.
- Speaking of coronavirus, the shares of medical equipment company Alpha Pro Tech, Ltd. (NYSE:APT) are surging before the open, after the company said it’s received more than $10.4 million in orders for its N-95 face mask. With APT poised to pop 27%, this would extend a volatile stretch for the shares since the coronavirus outbreak. APT closed yesterday at $4.74, after trading as high as $7.76 back on Jan. 27.
- Today will bring weekly jobless claims data, the consumer price index (CPI), and the core CPI.
Stocks in Europe Slide
Stocks in Asia turned lower on Thursday amid a spike in coronavirus cases and the climbing death toll in China. The region’s Shanghai Composite fell 0.7% in response, while Hong Kong’s Hang Seng dropped 0.3%. Meanwhile the Nikkei in Japan lost 0.1% thanks to a sharp SoftBank pullback, and the South Korean Kospi dropped 0.2% — dragged lower by auto giant Hyundai Motor.
With coronavirus fears in focus globally, European stocks are also down at midday. The FTSE 100 in London is getting hit the hardest, off 1.6% at last check, while the French CAC 40 is down 0.8%, dampened by a big loss from electric supplies stock Rexel. Rounding out the region, the German DAX is down 0.5%.
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