US equity futures declined alongside stocks globally amid cautious optimism over China's ability to contain the Wuhan coronavirus.

It’s been a tumultuous week from London to Tokyo, with investors racing to react to a barrage of corporate earnings, major central-bank decisions and economic data, all in the shadow of the virus outbreak that will see two-thirds of China’s economy remain shut next week.

The World Health Organization declared the virus a global health emergency yesterday. However, Director-General, Tedros Adhanom Ghebreyesus, praised China's efforts to contain the spread and said the WHO "doesn't recommend - and actually opposes" travel and trade restrictions to China.

The United States, separately, issued a level-four warning, the most severe warning issued by the state department, and told its citizens not to travel to China.

Stocks finished higher yesterday’s, following the WHO’s praise of the Chinese government. The S&P 500 traded higher during its final minutes of trading to end the session up +0.32%.

Ahead, in today’s economic calendar, Friday includes; Personal Income and Outlays for December at 8:30am EST, the Chicago PMI for January at 9:45am EST, followed by Consumer Expectations and Sentiment for January at 10 am EST.

In corporate news; Caterpillar (CAT), Honeywell (HON), Exxon Mobil (XOM), Chevron (CVX), Colgate-Palmolive (CL) and Phillips 66 (PSX) are all expected to report today.

China: Outbreak Reaches UK; Global Cases Near 10,000. (Bloomberg)
The UK confirmed its first two cases of coronavirus on Friday, while the US and Japan advised citizens to avoid traveling to China. Singapore and Vietnam suspended visas issued to Chinese citizens.

Today's Economical Announcements.

08:30AM - ★☆☆ - Personal Income (Dec) (Previous: 0.5%)
08:30AM - ★★☆ - Personal Spending (Dec) (Previous: 0.4%)
09:45AM - ★★☆ - Chicago PMI (Jan) (Previous: 48.2)
10:00AM - ★★☆ - Michigan Consumer Expect. (Jan) (Previous: 88.9)
10:00AM - ★★☆ - Michigan Consumer Senti. (Jan) (Previous: 99.3)

Pre-Market Movers & News Related Stocks. (AMZN): [EARNINGS] Earned $6.47 per share for the fourth quarter, well above the consensus estimate of $4.03. Revenue also exceeded analyst forecasts, powered by a robust holiday season as well as strong results for advertising and cloud computing.

Amgen (AMGN): [EARNINGS] Reported adjusted quarterly profit of $3.64 per share, 17 cents above consensus forecasts, with the biotech company’s revenue also beating estimates. However, Amgen gave a weaker-than-expected full-year forecast, due to lower interest income and its recently acquired stake in China’s BeiGene, which is currently unprofitable.

Navistar (NAV): [NEWS] Received an unsolicited buyout offer from Volkswagen’s commercial truck unit Traton for the part of Navistar it doesn’t already own. The offer amounts to $35 per share, or $2.9 billion, compared to yesterday’s close of $24.07. 

Colgate-Palmolive (CL): [EARNINGS] Matched Street forecasts with adjusted quarterly earnings of 73 cents per share, with revenue beating estimates. Colgate did see a 5% jump in organic sales during the quarter and expects an organic sales growth rate of 3% to 5% this year.

Electronic Arts (EA): [EARNINGS] Reported adjusted quarterly profit of $2.52 per share, a penny above estimates, with revenue essentially in line. However, the video game maker gave a weaker-than-expected current-quarter revenue forecast, in part due to a delayed launch for its “NBA Live” game.

Visa (V): [EARNINGS] Matched Street forecasts with quarterly earnings of $1.46 per share, but the payment network operator’s revenue came in below estimates. Visa also saw a 14% increase in operating expenses during the quarter as it spends more on rewards and incentives for cardholders.

IBM (IBM): [NEWS] CEO Ginni Rometty will step down in April after eight years on the job. She will be succeeded by Arvind Krishna, head of IBM’s cloud computing business. Rometty will remain as executive chairman through the end of the year.

Marathon Petroleum (MPC): [NEWS] Is exploring the sale of its Speedway gasoline station division, according to a Bloomberg report. Marathon said last year it was seeking to spin off Speedway, which has about 4,000 locations in the US.

Honeywell (HON): [EARNINGS] Beat estimates by 2 cents with adjusted quarterly profit of $2.06 per share, but revenue was shy of forecasts. Honeywell also gave a weaker than expected revenue guidance, saying the 737 Max production halt will hurt growth. Honeywell makes a variety of 737 Max components.

Caterpillar (CAT): [EARNINGS] Reported adjusted quarterly earnings of $2.63 per share, beating the consensus estimate of $2.37. However, revenue came in below forecasts, and Caterpillar also issued a weaker-than-expected full-year outlook. The company said global economic uncertainty would continue to pressure sales this year.

Exxon Mobil (XOM): [EARNINGS] Earned an adjusted 41 cents per share for the fourth quarter, 2 cents below estimates, but revenue did exceed Wall Street forecasts. Exxon said short-term supply issues in its downstream and chemicals businesses impacted its results.

Levi Strauss (LEVI): [EARNINGS] Reported adjusted quarterly earnings of 26 cents per share, 5 cents above estimates, but the apparel maker’s revenue was slightly short of forecasts. The company also gave an upbeat full-year earnings forecast, as well as announcing a $100 million stock buyback and initiating a dividend of 8 cents per share. Levi Strauss also announced it has about half its stores in China due to the coronavirus outbreak and will take a financial hit as a result.

Johnson & Johnson (JNJ): [NEWS] Was ordered by a California judge to pay a $344 million fine, in a case accusing the company of deceptively marketing its surgical mesh devices. The company said it would appeal the decision, adding that it “responsibly communicated the risks and benefits” of the device.


1Life Healthcare (ONEM) (Price: 14) (Est. Vol: $245.0M)
Arcutis Biotherapeutics (ARQT) (Price: 17) (Est. Vol: $125.0M)
Avadim Health (AHI) (Low: 14, High: 16) (Est. Vol: $75.0M)
InterPrivate Acquisition (IPV.U) (Price: 10) (Est. Vol: $175.0M)
Reynolds Consumer Products (REYN) (Price: 26) (Est. Vol: $1.2264B)