If early numbers are any indicator, Wednesday’s market jump may only have been temporary, plus stocks to watch today in the Money and Markets Wall Street Wake-Up.
The Top Story
Wall Street is poised for another roller-coaster ride Thursday after markets experienced big gains the day before.
However, Thursday’s premarket trading indicates an opening drop.
Why the fall: Additional fears over the spread of the coronavirus is creeping back and taking hold of investor sentiment. A 50-basis-point rate cut by the Federal Reserve also did little to calm Wall Street’s fears.
What’s happening now: As of 8 a.m. Eastern time, Dow futures were down 1.6%. The Nasdaq was off 1.7% while the S&P 500 dropped 1.7%. Those signs point to another raucous day for Wall Street.
Stocks to Watch Today
Ciena Corp. (NYSE: CIEN) — The telecommunications company reported a 7% year-over-year increase in quarterly revenue and an increase in quarterly revenue. As a result, shares of Ciena Corp. rose 5.7% in early trading.
Marvell Technology Group Ltd. (Nasdaq: MRVL) — Shares of the international semiconductor company jumped 8.6% in premarket trading after it beat analysts’ estimates for earnings and revenue. It also provided strong first-quarter guidance.
American Eagle Outfitters (NYSE: AEO) — The apparel company reported better-than-expected earnings for the fourth quarter on Wednesday. Shares of American Eagle were up 4.9% in premarket trading.
In the News
The largest cannabis company by market capitalization is closing 3 million square feet of greenhouses and laying off staff.
Canopy Growth Corp. (NYSE: CGC) announced plans to close greenhouses in British Columbia, leading to the layoff of 500 employees.
The closures could result in a nearly $700 million pre-tax charge to Canopy Growth’s quarterly earnings — for the quarter ending March 31.
Airline Industry Could Lose $113 Billion Due to Coronavirus
A report by the International Air Transport Association suggests the coronavirus will have a big hit to the airline industry.
The organization said airlines could lose between $63 billion to $113 billion as fears over the spread of the coronavirus pushes travel — specifically international travel — to a near-halt.
Airline share prices have fallen nearly 25% since the outbreak began in January — 21 percentage points more than during the SARS outbreak in 2003.
Senate Passes Bill Requiring 5G Review
New legislation will require the federal government to find any security threats related to 5G wireless networks and fix them.
The U.S. Senate passed a bill without opposition that compels the Trump administration to focus on potential threats to mobile networks.
It requires the White House to work with various federal agencies to create policies that create security gaps and protects American companies “that lead innovation in mobile-network technologies.”
Other Morning Reads
4 Undervalued Stocks to Buy Right Now (Money and Markets)
China’s Economy Could Shrink For the First Time in Decades (CNN Business)
Cramer ‘More Nervous’ About Virus After Emergency Rate Cut (Money and Markets)
Here are the companies releasing earnings reports today:
ADT Inc. (NYSE: ADT)
Burlington Stores Inc. (NYSE: BURL)
Costco Wholesale Corp. (Nasdaq: COST)
Kroger Co. (NYSE: KR)
Renewable Energy Group Inc. (Nasdaq: REGI)
Check back each morning before the opening bell for stocks to watch today with the Wall Street Wake-Up, here on Money and Markets.