U.S. stock futures were pointing to an over 300-point advance for the Dow Jones Industrial Average at Tuesday's open as Wall Street looks to companies reporting quarterly earnings for signals on how they're navigating the coronavirus crisis. If the projected gains for the Dow were to hold by the close, blue chips would get back what they lost Monday. Heading into the new session, the Dow was off nearly 21% from its February record highs. (CNBC)
Two Dow components, JPMorgan Chase and Johnson & Johnson, kicked off earnings season before the bell Tuesday. The impact of the virus on business might be somewhat muted as state stay-at-home orders were taking effect towards the end of the January-to-March quarter. (CNBC)
Shares of JPMorgan were over 1% higher in the premarket after the banking giant posted record trading revenue during the surge in market volatility in the first quarter. The company reported a worse-than-expected 78 cents per share as it added $6.8 billion to loan loss provisions. (CNBC)
* Wells Fargo also aside more money for credit losses (CNBC)
Shares of J&J were up about 3% in premarket trading after the company reported better-than-expected adjusted earnings of $2.30 per share in the first quarter on better-than-expected revenue of nearly $20.7 billion. The U.S. drug giant raised its quarterly dividend. However, citing the uncertainty of the virus, J&J cut its full-year profit forecast. (CNBC)
The global economy will this year likely suffer the worst financial crisis since the Great Depression, the International Monetary Fund said Tuesday, as governments worldwide grapple with the Covid-19 pandemic. The IMF now expects the global economy to contract by 3% in 2020. In January, it had forecast a global expansion of 3.3% for this year. (CNBC)
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U.S. coronavirus cases are approaching 583,000 with 23,649 deaths. Democratic New York Gov. Andrew Cuomo said Monday the state, which has the most cases and fatalities in America, is "controlling the spread," citing a flattening of the daily death toll, a flattening in the net number of hospitalizations and a drop in the number of people on ventilators. However, deaths in New York topped 10,000 on almost 200,000 cases. Global cases are nearing 2 million. The death toll worldwide is 120,450. (CNBC)
* World Health Organization says 'certainly not seeing the peak yet' (CNBC)
* Sanofi partners with GSK for developing coronavirus vaccine (CNBC)
STOCKS TO WATCH
Roku (ROKU): Roku reported preliminary first-quarter sales numbers that are above Wall Street forecasts, with more people staying at home due to the coronavirus outbreak and using Roku's video streaming devices. Roku did, however, withdraw its full-year guidance due to uncertainty related to the pandemic.
Anheuser-Busch InBev (BUD): Anheuser-Busch InBev plans to cut its dividend in half, as it tries to ease a debt burden stemming from its $100 billion purchase of SABMiller in 2016. The beer brewer is also postponing its annual meeting due to the uncertainty surrounding the virus outbreak.
Apple (AAPL): Apple shipped 2.5 million iPhones in China in March, according to government data. It had shipped only 500,000 phones in China in February.
British American Tobacco (BTI): The company is under criminal investigation in the U.S., according to a Reuters report. The cigarette maker is said to be under scrutiny for alleged sanctions breaches.
Walt Disney (DIS): Disney struck a $5 billion unsecured credit agreement, which it said may be used to fund day to day operations. Disney businesses, such as theme parks and movies, have taken a significant hit from the Covid-19 pandemic.
Valero Energy (VLO): Valero said it may report a first-quarter loss of up to $2.1 billion, as the independent refiner sees demand for gasoline and other refined products fall due to the coronavirus outbreak.
Exxon Mobil (XOM: Exxon sold another $9.5 billion in debt with varying maturities. Interest rates ranged from 1.571% for debt due in 2023 to 3.452% for 30-year debt.
Chesapeake Energy (CHK) Chesapeake shareholders approved a 1-for-200 reverse stock split, a move that will keep it in compliance with New York Stock Exchange listing rules. The energy producer also sees the move boosting liquidity and possibly attracting interest from new investors.
Tesla (TSLA): Tesla is asking some of its landlords for rent reductions, according to The Wall Street Journal. The automaker is seeking to save money as the virus outbreak shuts most of its business down. Separately, Tesla shares pop after Credit Suisse upgrades stock, saying the automaker will increase electric car lead.
News Corp (NWSA): News Corp said its newspaper advertising revenue would take a hit, with advertisers pulling back due to the virus outbreak. The Wall Street Journal owner said, however, that it is seeing a rise in digital subscribers.
Quest Diagnostics (DGX): Quest said overall testing volume is declining, despite a surge in Covid-19 testing. Quest said it has performed about 40% of all virus-related testing by commercial medical labs.
Navistar (NAV): Navistar is seeking to save $300 million through the end of the truck maker's fiscal year in October. Navistar said it would defer pay for executives and salaried workers, and postpone capital spending.
Matthew J. Belvedere