The manufacturing sector has been hit by the coronavirus plus stocks to watch today in the Money and Markets Wall Street Wake-Up.
The Morning Open
U.S. markets started to rally Tuesday after posting their lowest day since October.
As of 10:45 a.m. Eastern time, the Dow Jones Industrial Average was up 130 points, or 0.4%. The S&P 500 jumped 0.9% and the Nasdaq Composite was up 1.1%.
Today also marks the second day of a busy earnings week. Check out our earnings reports to watch this week, here.
The Opening Bell
Expect the coronavirus to dominate market news Tuesday as Chinese officials have raised the death toll attributed to the virus to 106. The total number of those infected grew to 4,515, according to the Chinese government.
The U.S. State Department asked Americans to “reconsider travel to China” and raised its travel advisory for China to Level 3.
Automakers could potentially lose out in both production and shipping because of the coronavirus.
On Tuesday, Honda Motor and PSA Group pulled employees out of Wuhan — ground zero for the virus. Automakers General Motors Co. (NYSE: GM), Honda and Nissan all have plants in Wuhan and may keep those plants closed longer than the Lunar New Year holiday — which already has plants closed until Thursday.
Toyota Motor implemented travel restrictions to China — despite the fact the company has no plants in the country. Ford Motor Co. (NYSE: F) also suspended travel to Wuhan. Ford operates plants in Chongqing and Hangzhou, both a good distance from Wuhan.
Tesla Inc. (Nasdaq: TSLA) could also be impacted as officials in Shanghai — where Tesla manufacturers its Model 3 — have prohibited companies from opening until after Feb. 9.
Stocks to Watch Today
3M Co. (NYSE: MMM) — Shares of the conglomerate were down 2.3% in premarket trading after the company reported it would cut 1,500 from its workforce amid missing quarterly revenue and profit forecasts.
Pfizer Inc. (NYSE: PFE) — The pharmaceutical giant reported lower-than-expected quarterly profits Tuesday. It also reported a 9% drop in revenue. Its shares were off 1.4% in premarket trading.
Beyond Meat Inc. (Nasdaq: BYND) — The plant-based meat company was downgraded to “neutral” from “overweight” by JPMorgan analysts. Shares of the company were off 2.6% in premarket trading Tuesday.
In the News
The United Kingdom will allow Chinese tech company Huawei to help develop its 5G high-speed wireless network. But it won’t be allowed to help with “core” parts of that infrastructure, according to The Associated Press and CNBC.
The decision, made by Britain’s National Security Council, waves a finger in the face of Prime Minister Boris Johnson’s closest ally, U.S. President Donald Trump. Trump has warned Johnson about using Huawei for 5G buildout because the company could be used to spy for the Chinese government.
JPMorgan Keeps Bonuses Flat for Bankers, Traders
After recording its best year since 2011, JPMorgan Chase & Co. (NYSE: JPM) is keeping its corporate and investment bank bonuses flat for 2019, according to Bloomberg.
According to the bank, it increased staff by 3% and compensation by 4% to $10.6 billion at both its corporate and investment bank.
Airbus Agrees to Settle Corruption Probes With France, U.K. and U.S.
European airplane maker, and chief rival to Boeing Co. (NYSEL BA), Airbus is looking at billions in fines after it settled corruption cases with authorities in France, the U.K. and the U.S., according to Reuters.
The investigations in Britain and France surrounded suspected corruption over nearly a decades-worth of plane sales. A U.S. investigation was over suspected violations of export controls.
In related plane news, Boeing has secured more than $12 billion from banks to help the company get through its current crisis related to the production of the 737 Max.
Other Morning Reads
How the Coronavirus Impacts the Market (Money and Markets)
AirPods: The New It Item Among the Playground Set (The Wall Street Journal)
Market Bull Hogan Warns Earnings, Not Virus Will Fuel Market Drop (Money and Markets)
Earnings Report
Here are the companies releasing earnings reports today:
3M Co. (NYSE: MMM)
Advanced Micro Devices Inc. (Nasdaq: AMD)
Apple Inc. (Nasdaq: APPL)
eBay Inc. (Nasdaq: EBAY)
Lockheed Martin Corp. (NYSE: LMT)
Chart of the Day
While there is little change in its ingredients, the price of a Big Mac varies greatly.
According to the Big Mac index studies the price of a Big Mac around the world. Switzerland leads the way with the most expensive Big Mac — $6.71 — while the cheapest place to find the burger is in South Africa, where it costs about $2.15.
A Big Mac in the U.S. costs approximately $5.67 — the second-highest of all countries surveyed.
Check back each morning before the opening bell for stocks to watch today with the Wall Street Wake-Up, here on Money and Markets.
