China makes a big cut to battle the coronavirus, Victoria’s Secret is going private plus stocks to watch today in the Money and Markets Wall Street Wake-Up.

The Morning Open

U.S. markets were barely moving the needle early Thursday.

As of 10:15 a.m., the Dow Jones Industrial Average and S&P 500 were both up 0.04%. The Nasdaq Composite opened down 0.03%.

The Top Story

China’s central bank has slashed its benchmark lending rates as threats from the coronavirus outbreak continue to loom over the world’s second-largest economy.

The People’s Bank of China cut its one-year loan prime rate to 4.05% from 4.15%. It also trimmed back the five-year rate to 4.75% from 4.8%. It’s the first cut since October 2019, according to CNBC.

What it means: With the interest rate banks charge lowered, the move is intended to get more individuals and businesses to borrow money. It especially helps Chinese businesses that may be struggling financially due to the crisis.

What they are saying: “Even if the … cut is passed on to all borrowers, that would only decrease average one-year bank lending rates from 5.44% to 5.34%. The ability of firms to postpone loan repayments and access loans on preferential terms will matter more in the near-term,” senior China economist at Capital Economics Julian Evans-Pritchard, wrote in a note Thursday.

Stocks to Watch Today

Adesto Technologies Corp. (Nasdaq: IOTS) — The technology company’s shares more than doubled before the market opened after news that Dialog Semiconductor PLC (Over-the-Counter: DLGNF) planned to acquire Adesto for $500 million came out.

Avis Budget Group Inc. (Nasdaq: CAR) — The car rental company reported beating earnings and revenue expectations as well as stronger FY 2020 sales guidance. Shares of the company were up 11.6% during the premarket session.

Boston Beer Co. Inc. (NYSE: SAM) — Shares of the beverage company were down nearly 7% after it reported lower-than-expected quarterly results and lower future sales guidance.

In the News

Victoria’s Secret is about to go private.

L Brands Inc. (NYSE: LB) is in the final stages of completing the sale of the lingerie brand to a private-equity firm. The potential transaction values Victoria’s Secret at around $1.1 billion, according to The Wall Street Journal.

Sycamore Partners is eyeing a 55% stake in Victoria’s Secret and plans to take it private. L Brands will retain a 45% stake in a separate company, which will include the Pink clothing brand.

Shares of L Brands were down 7.3% early Thursday morning.

World’s Largest Wealth Manager to Get New CEO

A second Swiss bank is getting a change in leadership.

UBS Group AG (NYSE: UBS) announced that ING Groep NV (NYSE: ING) chief Ralph Hamers will replace current UBS CEO Sergio Ermotti on Nov. 1.

It comes just a few weeks after Credit Suisse Group AG (NYSE: CS) CEO Tidjane Thiam resigned from his post amid a spying scandal.

International Airlines Reporting Possible Profit Loss Due to Coronavirus

Australian flagship airline Qantas said the coronavirus outbreak will likely cost it $100 million in profit in the second half of the fiscal year.

Air France and KLM also reported the virus may cut earnings by about $216 million as airlines have had to cancel flights to Asia due to the outbreak.

Other Morning Reads

Cooperman Warns Markets Are ‘Knocking on the Door of Euphoria’ (Money and Markets)

U.S. Solar Jobs Are Rebounding From Tariff Blow (Bloomberg)

Tesla Back in the Driver’s Seat as Shares Surge Above $900 (Money and Markets)

Earnings Report

Here are the companies releasing earnings reports today:

Consolidated Edison Inc. (NYSE: ED)

Domino’s Pizza Inc. (NYSE: DPZ)

Morningstar Inc. (Nasdaq: MORN)

Reliance Steel & Aluminum Co. (NYSE: RS)

ViacomCBS Inc. (Nasdaq: VIAC)


Check back each morning before the opening bell for stocks to watch today with the Wall Street Wake-Up, here on Money and Markets.