US stock futures rose on Friday, alongside equity prices in Europe, as fresh economic data signaled a halt in the slowdown of Germany’s manufacturing sector, which buoyed investor sentiment globally.
Preliminary data on purchasing managers’ index, a closely watched measure of business activity, suggested that the manufacturing sector in the Eurozone, particularly in Germany, fared better than street expectations for the month of January.
The report added to relief from yesterday’s session, where the S&P 500 (+0.11%) ended positive, after the World Health Organization stopped short of declaring the Wuhan Coronavirus a global health emergency.
China has locked down travel from more than 40 million of its civilians in an effort to contain the virus during the busy Chinese New Year holiday. Markets in mainland China and South Korea were shut in observation today, while Hong Kong closed early with a modest gain.
Ahead, in today’s economic calendar, Friday includes; the PMI Composite Flash for January at 9:45am EST.
In corporate news; American Express (AXP) is expected to report its latest earnings this morning.
TODAY'S TOP HEADLINES
China: China Locks Down 40 Million People as Anger Grows Over Virus. (Bloomberg)
China is struggling to contain rising public anger over its response to a spreading coronavirus even as it took unprecedented steps to slow the outbreak, restricting travel for 40 million people on New Year's Eve.
Today's Economical Announcements.
09:45AM - ★★☆ - Manufacturing PMI (Jan) (Previous: 52.4)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Intel (INTC): [EARNINGS] Reported quarterly profit of $1.52 per share, beating the consensus estimate of $1.25. The chipmaker’s revenue also exceeded Wall Street forecasts, helped by an improvement in personal computer and data center demand. Intel also gave an upbeat current-quarter outlook, as well as announcing a 5% dividend increase.
Broadcom (AVGO): [NEWS] Struck a deal to supply Apple (AAPL) with wireless components for Apple products through 2023, in a transaction worth an estimated $15 billion. Apple currently accounts for about 20% of Broadcom’s annual revenue.
American Express (AXP): [EARNINGS] Reported quarterly earnings of $2.03 per share, 2 cents a share above estimates. Revenue was slightly above consensus. The financial services giant said revenue growth during 2019 was driven by higher card fee income as well as increased spending by cardholders.
Skyworks Solutions (SWKS): [EARNINGS & NEWS] Skyworks reported better-than-expected quarterly profit of $1.68 per share, 3 cents a share above estimates. Revenue also came in above forecasts. Competitor Broadcom signed an Apple supply deal.
Intuitive Surgical (ISRG): [EARNINGS] Beat estimates by 10 cents a share, with adjusted quarterly earnings of $3.48 per share. The surgical instruments maker’s revenue also came in above Wall Street projections. Procedures performed with the company’s Da Vinci robotic surgical devices increased by 19% during the quarter compared to a year earlier.
E*Trade Financial (ETFC): [EARNINGS] Earned an adjusted 84 cents per share for the fourth quarter, a penny a share above estimates. Revenue also came in above consensus. The bottom-line number excludes 8 cents a share of negative impact from restructuring and special charges. The online brokerage company saw a drop in net interest income and higher non-interest expenses but also reported record customer trading activity.
Discover Financial (DFS): [EARNINGS] Came in a penny a share above estimates, with quarterly earnings of $2.25 per share. Revenue was essentially in line with forecasts. Evercore downgraded the credit card and financial services provider to “underperform” from “in line” following the report, saying it sees pressure on Discover’s bottom line this year from higher investments, increased credit costs, and fewer buybacks.
Generac (GNRC): [UPGRADE] Oppenheimer upgraded the maker of power generators to “outperform” from “perform,” based on expectations of solid revenue growth. Oppenheimer points to the emergence of the California market for Generac, as well as sustained strength in core demand fundamentals.
Walt Disney (DIS): [NEWS] The Shanghai Disney resort will close until further notice, as officials try to stop the spread of the coronavirus.
GAINERS: JBLU, BC, CVM, CCC
DECLINERS: VFC, RVLV, DISCA, ETRN
Gores Holdings IV (GHIVU) (Price: 10) (Est. Vol: $400.0M)
SCVX Corp (SCVXU) (Price: 10) (Est. Vol: $200.0M)
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