Equity futures rose Tuesday morning as investors prepare for a turbulent season of profits as the coronavirus pandemic swept across the country at the end of the first quarter.
regular session Monday, the S & amp; P 500 and Dow finished lower and returned some of the strong advance from last week. The Nasdaq finished slightly higher, supported by a 6% jump in Amazon stocks after the company announced a new hiring wave to cope with a surge in demand for delivery. “Data-reactid =” 17 “> During Monday’s regular session, the S&P 500 and the Dow finished lower and returned some of the strong advance from last week. The Nasdaq finished slightly higher, supported by a 6% jump in Amazon shares after the company announced a new hiring wave to cope with a surge in demand for delivery.
Federal and state authorities have changed their rhetoric around the coronavirus, moving from the mere discussion of containment and distancing efforts to thinking about reopening parts of the country.
At a press conference on Monday, Andrew Cuomo, governor of New York’s hardest hit state, said he believed “the worst is over” as long as New Yorkers remain cautious about respecting social distancing measures. He delivered a joint conference with the governors of New Jersey, Connecticut, Pennsylvania, Delaware and Rhode Island to announce that they have formed a task force to develop a reopening plan for the Northeast.
In a similar move across the country, Governor of California Gavin Newsom said he was working with Washington State and Oregon to develop a plan to reopen schools and businesses because of new cases of coronaviruses in the regions have also started to show signs of stabilizing.
announcements from these multi-state coalitions came shortly after President Donald Trump said on Twitter that the decision to reopen the government would be determined by the White House, creating a potential stumbling block to decide the ultimate path to alleviate week-long social distancing measures across the country. “Data-reactid =” 21 “> The announcements of these multi-state coalitions came shortly after President Donald Trump said on Twitter that the decision to reopen the government would be determined by the White House, creating a potential stumbling block to decide the ultimate path to alleviate weeks of social distancing measures that have been going on across the country.
JPM) and Wells Fargo (WFC) were among the biggest names in the release of their first quarter results, and will be followed by other major financial institutions later this week. Healthcare giant Johnson & amp; Johnson (JNJ) also released results Tuesday morning. “Data-reactid =” 33 “> A first batch of corporate earnings results, which will be released on Tuesday, will provide investors with the first data on the impact of the coronavirus pandemic on major banks and healthcare facilities. JPMorgan Chase (JPM) and Wells Fargo (WFC) were among the biggest names in reporting their first quarter results, and will be followed by other major financial institutions later this week. Health giant Johnson & Johnson (JNJ) also released results on Tuesday morning.
With the pandemic leading to unprecedented global social distancing and foreclosure – and equally unprecedented fiscal and monetary policy responses – analysts have had little to grasp to estimate returns businesses at the start of the epidemic.
“Worried investors have focused on the fact that the first quarter earnings season will inevitably lead to a wave of downward revisions to analyst estimates, which means the implicit risk premium on stocks will fall – and consensus P / E [price-to-earnings] the multiple will increase – even without changing the price of the S&P 500, “Goldman Sachs analyst David Kostin wrote on Monday. His company predicts that the S&P 500’s earnings per share for the quarter will drop 15% from a year ago.
“While many analysts have been paralyzed by uncertainty and lack of management advice for much of the past few weeks, reviews have accelerated before reporting on results,” he added. However, we think they are still too high. “
8:30 a.m.ET: IMF worsens global outlook and sees global economic activity shrink by 3% in 2020 due to coronavirus
said in a statement. “Data-reactid =” 39 “> The International Monetary Fund said on Tuesday that it expects the world economy to contract by 2% in 2020, a margin” much worse than during the crisis 2008-2009 financial statement “, due to the COVID-19 pandemic,” he said in a statement.
“In a baseline scenario – which assumes that the pandemic subsides in the second half of 2020 and that containment efforts can be phased out – the global economy is expected to grow 5.8% in 2021 as economic activity will normalize, helped by political support, “said the IMF.
“The risks for even more serious results, however, are considerable,” he added. “Effective policies are essential to prevent the possibility of worse outcomes, and the measures necessary to reduce contagion and protect lives are an important investment in long-term human and economic health.”
7:40 a.m.ET: Fastenal shares rise as strong sales of safety equipment outweigh weak March results
VITE), a wholesale distributor of industrial and construction supplies, increased 4.5% in pre-market trade after the company increased its personal protective equipment sales 31% on a daily basis in March in the context of the coronavirus pandemic. “data-reactid =” 48 “> The shares of Fastenal (FAST), a wholesale distributor of industrial and construction supplies, rose 4.5% in trade before marketing after the company reported a 31% increase in sales of personal protective equipment on a daily basis in March amid the coronavirus pandemic.
By March, when social distancing measures took effect in much of the United States, Fastenal’s business activity in January and February had “remained sluggish, as it had been for most of the second half of 2019, “said the company.
“The second half of March saw activity levels drop significantly in response to the company’s actions to fight the coronavirus pandemic,” he added.
However, the company has seen bright spots in the results of equipment production related to slowing the spread of the coronavirus epidemic.
“March sales of our fasteners decreased 10.1% on a daily basis due to the slowdown in industrial activity, while our security activities increased 31.0% on a daily basis because we have been able to source and supply essential personal protective equipment (PPE) to the markets, “said Fastenal. “In addition, although our end markets for non-residential manufacturing and construction decreased by 1.1% and 7.8% respectively on a daily basis, our government activities increased by 31.1% on a daily basis , sales to healthcare establishments more than doubled. ”
7:33 a.m.ET: Stock futures increase in the first handful of results
Here are the main market movements at 7:34 a.m.ET:
S&P 500 Futures (ES = F): up 26.5 points, or 0.96% to 2,785.75
Dow Futures (YM = F): up 263 points, or 1.13% to 23,572.00
Nasdaq Futures (NQ = F): up 106.5 points, or 1.28% to 8,433.75
Gross (CL = F): – $ 0.48 (-2.14%) to $ 21.93 per barrel
Gold (GC = F): – $ 2.50 (-0.14%) to $ 1,758.90 per ounce
10-year treasury (^ TNX): -0.2 bps for a yield of 0.747%
7:17 am EST: JPMorgan Chase increases credit reserves and lowers forecast for all-year net interest income as Dimon warns of “fairly severe recession”
the company’s reported earnings per share for the first quarter. “data-reactid =” 65 “> JPMorgan Chase, the largest US bank in terms of assets, took a significant charge in the first quarter to build up its credit reserves in anticipation of a downturn, which adversely affected the company’s reported earnings per share for the first time. trimester.
“In the first quarter, the company’s underlying results were extremely good, but given the likelihood of a fairly severe recession, it was necessary to build up $ 6.8 billion in credit reserves, resulting in total credit costs of $ 8.3 billion for the quarter, “CEO Jamie Dimon said a statement.
For the first quarter, JPMorgan Chase reported adjusted earnings per share of 78 cents on adjusted revenue of $ 29.07 billion. The two fell below expectations for adjusted earnings of $ 2.13 per share on adjusted revenue of $ 29.52 billion, according to data compiled by Bloomberg. However, results compared to profit forecasts have largely declined due to a lack of visibility in the results on the impact of the coronavirus pandemic on businesses.
JPMorgan now sees closely watched net interest income totaling $ 55.5 billion for the entire year, or below the $ 57 billion the company previously forecast.
6:50 am ET Tuesday: Johnson & Johnson lowers 2020 forecast due to coronavirus but increases dividend
it said Tuesday in its report on quarterly results. “data-reactid =” 71 “> Johnson & Johnson downgraded its outlook for 2020 annual results on Tuesday due to the impacts of the coronavirus, he said in his statement on Tuesday. quarterly results report.
Operational sales are forecast to decrease 3.5% from last year, according to updated forecasts, or range from $ 79.2 billion to $ 82.2 billion. In January, J&J had previously seen operational sales grow between 4.5% and 5.5% for the year, reaching $ 86.6 billion.
J&J also announced Tuesday that it is increasing its quarterly dividend to $ 1.01 per share from 95 cents per share.
For the first quarter released, J&J posted adjusted earnings of $ 2.30 per share on revenue of $ 20.69 billion, exceeding expectations of $ 2 per share on revenue of 19, $ 48 billion.
6:00 p.m. ET Monday: Equity futures open roughly flat
Here are the main actions taken at the start of the night session for American equity futures, starting at 6:00 p.m. Monday ET:
S&P 500 Futures (ES = F): up 2.25 points, or 0.08% to 2,761.5
Dow Futures (YM = F): up 21 points, or 0.09% to 23,330
Nasdaq Futures (NQ = F): up 11.25 points, or 0.14% to 8,338.5
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