January 27, 2020 7:55am
As I stated Friday, “I am raising a red flag on pricing sustainability but, not quite yet waving it” - it’s now flapping in the winds of a macro calamity
Pre-open indications: I’d be watching and waiting for new bottoms to be formed
My version of the morning’s numbers is written to be informative; it’s includes what happened or will beyond the headline and shapes today’s markets as seen by RMi - SUBSCRIBE
Dow future are DOWN -1.41% (-409 points), S&P futures are DOWN -1.34% (-44 points) and NASDAQ futures are DOWN -1.73% (-158 points)
U.S. stock index futures point to a major decline after more cases of the coronavirus were confirmed over the weekend;
European stocks fall sharply as China virus fears intensify with the Stoxx 600 was down -1.4%;
Most Asian markets (Australia, China, Hong Kong, Singapore, South Korea, and Taiwan) remain closed on Monday for the Lunar New Year, but Japan’s Nikkei 225 was down by around 1.83%;
Data Docket: new home sales numbers are expected at 10 a.m. ET and the Dallas Fed manufacturing numbers are due at 10:30 a.m. ET.
There are 2,862 confirmed cases so far in China, and the number of cases worldwide are rising and the death toll in China has risen to 81.
U.S. markets is also waiting for further clarity from the European Union over plans to introduce a carbon tax. The U.S. would react if the new tax is deemed to be protectionist.
Let’s NOT over-assess or under-estimate the virulence of this coronavirus and its effect.
Friday night’s post’s title: “which risks are playing-out that haven't already been there?”
- The NASDAQ closed DOWN -87.57 points (-0.93%);
- The IBB closed down -2.62% and the XBI closed down -2.51%;
- The range of the 7 upside was +0.44% (QURE) to +2.01% (CLBS) while the 28 downside ranged from -0.26% (PSTI) to -12.51% (BLCM);
- 3 out of the 7 upside had higher than the 3-month average volume;
- 11 out of the 28 downside had higher than the 3-month average volume;
January registered 8 positive, 6 negative closes and 2 holidays, to date.
- December register 11 negative and 10 positive closes
- November registered 1 holiday, 12 positive and 8 negative close;
- October registered 10 positive, 1 neutral and 14 negative closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
Pre-open indications: The question will be – WHO or WHICH companies won’t get HIT although new bottoms will be formed
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.