It’s shaping up to be another day of big losses in the markets as the route continues on Wall Street, plus stocks to watch today in the Money and Markets Wall Street Wake-Up.

The Top Story

Despite President Donald Trump suggesting the risk of the coronavirus in the U.S. is “very low,” fears over the spread of the virus continue to hammer Wall Street.

The Centers for Disease Control confirmed the first case of “community spread” of the virus in California. The organization could not ascertain how the patient contracted the virus.

Investors continued to pour into safe-haven investments, like U.S. government bonds. The drive has now pushed the 10-year Treasury yield to a new record low of just under 1.29%.

What it means: Premarket trading is not the end-all, be-all indicator for a day’s market performance, but judging by the fact that markets are down sharply early Thursday, equities will open on a sour note.

Mounting losses: Through Wednesday’s close, the Dow Jones Industrial Average has lost more than 2,000 points this week. It’s also on pace to suffer the worst percentage-point weekly performance since 2008 when it dropped 7% in a week. Currently, the Dow is down 8% less than a month after setting a record high, and a whopping 400 points before the opening bell.

Where it stands: As of 8 a.m. Eastern time, Dow Jones Industrial Average futures were down more than 380 points, or 1.5%. S&P 500 futures also dropped 1.5%% and Nasdaq Composite futures were off 1.9%.

Stocks to Watch Today

Microsoft Corp. (Nasdaq: MSFT) — Despite weathering the storm of the coronavirus outbreak, Microsoft officials said late Wednesday it will miss its revenue guidance in its personal computing sector — its largest division. The company initially issued guidance of $10.75 billion to $11.15 billion. Shares of Microsoft were down more than 4.4% in premarket trading.

Gilead Sciences Inc. (Nasdaq: GILD) — Shares of the biotech company jumped 6.3% early this morning on news it has entered phase 3 testing of its remdesivir drug, which is aimed at combating the coronavirus. The drug has not been approved or licensed for use.

Square Inc. (NYSE: SQ) — The financial services company beat fiscal fourth-quarter earnings and reported a 41% year-over-year jump in total net revenue. The company also suggested stronger revenue and profit growth for the next quarter. Its shares were up 4.4%.

In the News

Equities aren’t the only thing falling due to fears of the coronavirus.

On Thursday, oil prices dropped more than 2% — falling for a fifth straight day — as analysts see a potential drop in the demand for crude oil.

Brent crude fell 2.2% to $52.28 a barrel early Thursday while West Texas Intermediate crude futures were down 2.1% to $47.69.

New forecasts project oil demand to only increase by 60,000 barrels per day. Consultants Facts Global Energy said that was “practically zero” compared to previous demand.

Coronavirus Claiming Another Victim: Corona Beer

As global markets continue to slide on fears of the coronavirus spread, there is another victim of the outbreak: beer.

Corona beer, made by Constellation Brands Inc. (NYSE: STZ) has been the subject of memes and videos shared on social media. There’s actually been an increase in internet searches for “corona beer virus” and “beer coronavirus.”

As a result, shares of Constellation have dropped nearly 8% this week and the purchase intent of adults in the U.S. has hit its lowest point in two years, according to YouGov Plc.

L Brands Takes Nearly $700 Million Charge on Victoria’s Secret

L Brands Inc. (NYSE: LB) took a sizable hit to its holiday profits on Thursday.

That came to a halt as the company took a nearly $700 million charge to write down the value of its Victoria’s Secret chain. That pushed its holiday quarter into a loss.

Last week, it agreed to sell a 55% stake in its lingerie business to private-equity firm Sycamore Partners for $525 million. That sale valued Victoria’s Secret at $1.1 billion and will create a new private company.

Its quarterly report also suggested the company expects further losses into the next quarter, thanks in part to the closing of stores in China due to the coronavirus outbreak.

Other Morning Reads

Report: Debt Among Oldest Americans Jumps 543% in Just 20 Years (Money and Markets)

Regulators Deal a Blow to Leading Coal Companies (CNN Business)

Peter Schiff: The Economy Is a Bubble, Coronavirus Is the Pin (Money and Markets)

Earnings Report

Here are the companies releasing earnings reports today:

Autodesk Inc. (Nasdaq: ADSK)

Beyond Meat Inc. (Nasdaq: BYND)

iHeartMedia Corp. (Nasdaq: IHRT)

Occidental Petroleum Corp. (NYSE: OXY)

Toronto-Dominion Bank (NYSE: TD)


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