Stock Futures Eye Big Gains After Positive Coronavirus Update

Reports indicate labs in U.K. and China are close to a vaccine

Managing Editor
Feb 5, 2020 at 9:18 AM
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After a blistering 400-point surge yesterday, Dow Jones Industrial Average (DJI) futures are eyeing another triple-digit open this morning. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also on track for a big push higher, after reports indicate labs in both the U.K. and China effective treatments have been discovered for the coronavirus outbreak. Back home, investors are unpacking the latest quarterly reports, with blue chip Walt Disney (DIS) reporting a top and bottom line earnings beat. Elsewhere, ADP private payrolls numbers for January showed 291,000 private-sector jobs added, toppling the 150,000 estimates. 

Continue reading for more on today's market, including: 

  • Senior Quantitative Analyst Rocky White breaks down low-priced vs. high-priced stocks.
  • The fitness stock cycling higher ahead of earnings. 
  • Plus, Ford stalled after earnings miss; eBay buyout rumors swirling; and Chipotle touts blowout quarterly report. 

Stock Futures Chart Feb 5

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.6 million call contracts traded on Tuesday, compared to 747,690 put contracts. The single-session equity put/call ratio fell to 0.46, and the 21-day moving average slipped to 0.53. 
  2. Ford Motor Company (NYSE:F) stock is down 7.6% in electronic trading, after the car manufacturer reported fourth-quarter earnings that fell short of expectations. Ford also issued a weaker-than-expected 2020 forecast, prompting three price-target cuts this morning, one of the lowest coming from RBC to $9 from $10. F is on track to surrender its 12-month breakeven level.
  3. eBay Inc (NASDAQ:EBAY) is down 2.2% before the open, after the Wall Street Journal reported the Intercontinental Exchange (ICE) made a $30 billion bid to acquire the e-tailer. ICE confirmed today it has explored such a deal. EBAY stock soared by 8.8% yesterday when the news first broke, but ran out of steam at its 160-day moving average.
  4. The shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) are up 1.7% ahead of the bell, after the burrito chain reported fourth-quarter earnings and revenue that handily topped estimates. Chipotle's same-store sales growth also topped expectations, and so far no fewer than nine brokerages have responded with price-target hikes, including to $1,010 at Credit Suisse. CMG was up 67.6% year-over-year heading into today, and is on track to nab a record high out of the gate this morning.
  5. On the economic calendar today is the ISM non-manufacturing index. Glu Mobile (GLUU), GoPro (GPRO), Humana (HUM), Merck (MRK), Peloton (PTON), Qualcomm (QCOM), Spotify (SPOT) will all share the earnings spotlight. 

Buzz Chart Feb 5

Overseas Markets Get Boost From Coronavirus Treatment News

Stocks in Asia closed mostly higher, recuperating some of the coronavirus-induced losses markets suffered earlier in the week. China’s Shanghai Composite paced the region with a 1.3% pop amid efforts from the country’s central bank to prop up the economy, while the Hang Seng in Hong Kong and the Kospi in South Korea both added 0.4%. Meanwhile, the Nikkei in Japan rose 1%.

European stocks are also rallying midday, amid reports from Reuters that an effective coronavirus treatment has been discovered by researchers at Zhejiang University. The German DAX is seeing the biggest gains, up 1.2%, undoubtedly getting a boost from surging semiconductor giant Infineon post-earnings. Elsewhere, the French CAC 40 has added 0.9%, while the London FTSE 100 is up 0.7%. 

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