Jumat, 21 Februari 2020

Deere's unexpected rise in quarterly profits sends shares soaring - Yahoo Finance

FILE PHOTO: The leaping deer trademark logo is seen on a sign outside a John Deere dealership in Taylor, Texas

CHICAGO (Reuters) - Deere & Co <DE.N> on Friday reported an unexpected increase in first-quarter profit and retained its full-year earnings forecast as signs of stabilization in the U.S. farm sector offset weak demand for construction machines, sending its shares soaring.

The farm equipment manufacturer reported net income of $517 million, or $1.63 per share, for the quarter ended Feb. 2, up from $498 million, or $1.54 per share, in the same period last year.

That compares with the average analyst estimate of $1.26 per share, according to Refinitiv Eikon data.

The Moline, Illinois-based company said it still expects net income in 2020 to be in the range of $2.7 billion to $3.1 billion.

The world's largest farm equipment maker's shares were last up 9% at $180.75 in pre-market trade.

Deere's earnings in the past quarters were buffeted by a nearly two-year-long U.S.-China trade war that hit U.S. agricultural exports, leaving farmers struggling to turn a profit.

But President Donald Trump's interim trade deal with China has raised hopes of a recovery in farm machinery demand.

"Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports," Chief Executive John May said in a statement.

Improved pricing power along with lower production costs and warranty expenses in the latest quarter drove up operating profits at its farm and turf business, which accounts for nearly 60% of Deere's revenue.

(Reporting by Rajesh Kumar Singh; Editing by Jane Merriman and Steve Orlofsky)

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2020-02-21 11:43:00Z
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T-Mobile, Sprint Revise Deal Terms After Regulatory Approval - Yahoo Finance

(Bloomberg) -- T-Mobile US Inc. and Sprint Corp. agreed to new terms for their pending merger that take account of the deterioration in Sprint shares since the transaction was first agreed, putting the industry-altering deal a step closer to completing.

T-Mobile owners will get roughly 11 shares of Sprint for each of their stock, the companies said Thursday. That’s an increase from a ratio of 9.75 previously -- a more favorable deal for T-Mobile’s German owner Deutsche Telekom AG.

Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon for Deutsche Telekom as it will reduce its reliance on Europe, where carriers are struggling to grow amid fierce competition. T-Mobile makes up more than half of Deutsche Telekom’s sales, up from about a third in 2014. A completed deal will also benefit Sprint owner SoftBank Group Corp. by allowing its chairman, Masayoshi Son, to better focus on his technology investments and the $100 billion Vision Fund.

The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million.

When the transaction closes, which could happen as soon as April 1, Deutsche Telekom is expected to keep 43% of the merged entity, while SoftBank has 24%. The rest will be held by public shareholders.

Deutsche Telekom shares were little changed in early trading in Frankfurt.

The original accord, which united the third- and fourth-largest U.S. wireless carriers in a $26.5 billion deal, was forged in April 2018. That pact lapsed on Nov. 1, and the companies didn’t initially renew the terms while they fought for government approval. When a federal judge rejected a state lawsuit to block the transaction earlier this month, that put the talks on the front burner.

Along the way, Sprint’s condition has worsened. That added pressure to redraw the agreement so that it was more favorable to Deutsche Telecom.

SoftBank agreed to surrender 48.8 million T-Mobile shares that it will acquire in the merger to the combined company immediately after the transaction closes. But those shares could be reissued to SoftBank by 2025 if the new company’s stock stays above $150 for a period of time.

Sprint investors other than SoftBank will still get the original ratio of 0.10256 T-Mobile shares for each Sprint share -- the equivalent of about 9.75 Sprint shares for each T-Mobile share.

Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%. That means roughly a quarter of its subscriber base is quitting the carrier each year. And the company isn’t making up for the decline by charging more: Average revenue per customer has fallen 5% since the deal was announced.

Analysts such as LightShed Partners’ Walt Piecyk said the merger’s exchange ratio should be closer to 12, given Sprint’s deteriorated business.

(Updates with share price in sixth paragraph.)

--With assistance from Stefan Nicola.

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Jennifer Ryan

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

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2020-02-21 08:03:00Z
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Stress, rumors, even violence: Virus fear goes viral - Japan Today

You might have heard that the fear of a new virus from China is spreading faster than the actual virus.

From earnest officials trying to calm a building panic. From your spouse. From the know-it-all who rattles off the many much more likely ways you’re going to die: smoking, car accidents, the flu.

None of it seems to matter.

As the number of cases rise — more than 76,000 and counting — fear is advancing like a tsunami. And not just in the areas surrounding the Chinese city of Wuhan, the site of the vast majority of coronavirus infections.

Subway cars in Tokyo and Seoul look more like hospital wards, with armies of masked commuters shooting dirty looks at the slightest cough or sneeze. A restaurant owner in a South Korean Chinatown says visitors have dropped by 90%.

You've probably got a better chance of winning the lottery than buying face masks in parts of Asia. Conferences and events have been disrupted from Beijing to Barcelona to Boston. Quarrels in Japan; riots in Ukraine. Rumors that toilet paper and napkins could be used as masks emptied East Asian store shelves of paper goods.

"Fear is a very strong emotion, and the prevailing fear over the new coronavirus drives people to do things irrationally without thinking straight,” said Bernie Huang, 31, a high school teacher in Taipei, Taiwan, who resisted the city’s now-easing toilet paper buying spree.

If you take the long view, panic has marched in lockstep with pandemic for as long as history has been recorded. The plague that devastated Athens in the fifth century BC. The Black Death that eradicated much of Europe in the 14th century. And, more recently, AIDS, Ebola, SARS, MERS, swine and bird flu.

Scientists, statisticians and people well away from the line of fire may scoff, but the fear, which is spread by word of mouth and, more rapidly, through online posts, is real.

“Fear can do more harm than the virus,” Singapore Prime Minister Lee Hsien Loong said in response to panic buying of toilet paper, canned food and instant noodles after the government raised a risk alert over the new virus.

It's perhaps most keenly felt in the places where crowds gather: churches, shopping areas, schools.

In the Philippines, nearly half of the pews were empty for recent Sunday Masses in many churches. At a Protestant church in northern Seoul, officials switched entirely to online worship after it was found that a virus patient had attended services days before he tested positive.

The huge Lotte Department Store in Seoul closed for several days for disinfection after it was found that a Chinese tourist with the virus visited. It reportedly lost about 20 billion won ($16.9 million) in revenue, based on figures by security analysts.

A mobile trade fair in Barcelona was canceled. PlayStation maker Sony pulled out of a video game conference in Boston over "increasing concerns" related to the virus. Organizers said the event will go on next week but "with enhanced cleaning."

At Namdaemun, Seoul’s largest traditional market, businesses saw huge drops in sales after an infected person was found to have visited the area last month.

“Merchants say their businesses are now dying,” said Chun Yong-bum, head of an association of thousands of merchants at Namdaemun.

The South Korean Education Ministry recently issued an advisory to universities to postpone the March start of the upcoming semester because of worries that thousands of Chinese students will return to schools from abroad.

South Korean President Moon Jae-in expressed worries that “excessively bloated fear” was hurting South Korea’s economy by suppressing public consumption and leisure activities.

The most eagerly-awaited gathering in Asia — the upcoming Summer Olympics in Tokyo — has been beset by fear, too.

Although he later backtracked, Tokyo Olympic CEO Toshiro Muto said recently that he was “seriously worried” the virus could disrupt the Olympics and Paralympics.

“One thing I am noticing at the moment is fear is spreading quicker than the virus, and it is important that we quell that fear,” said Craig Spence, the spokesman for the International Paralympic Committee.

In Japan, fear and the virus have intersected most visibly on a huge cruise ship in the port of Yokohama, where thousands of passengers and crew were quarantined for two weeks as hundreds of people on board tested positive for the virus.

One quarantined passenger hung a banner that read: “No information ... Stressed. Many bad rumors.”

The internet foments many of those rumors.

In Malaysia, a social media rumor that mandarin oranges carry the virus caused some initial panic until health officials debunked it.

When news broke that a journalist who reports on Japan’s leader had contact with an infected driver and was in self-quarantine, a web edition of the Weekly Post tabloid magazine declared: “Coronavirus has sent shockwaves to the prime minister’s office.”

Fear, and possibly a dark sense of humor, may also help explain some odd behavior: images of people using orange peels as face masks; children in strollers wrapped in what looks like dry cleaning plastic.

In Taiwan, people began stocking up on toilet paper and napkins after a rumor on the internet said they could be used as masks to stop the spread of viruses, said Yang Bo-ken, deputy director of the government’s Industrial Development Bureau.

Taiwan’s Criminal Investigation Bureau recommended the prosecution of three women on allegations they used the popular LINE social media service to suggest using table napkins, sanitary napkins and toilet paper as a mask substitute, a bureau spokesperson said.

The fear has also led to lawlessness.

In Kobe, Japan, 6,000 surgical masks were reported stolen from a hospital.

Several hundred residents fearing infection in Ukraine clashed for hours with police as they blocked a road to a building where more than 70 people evacuated from China because of the virus were to be quarantined.

Two passengers on a subway in Fukuoka, Japan, quarreled after a man not wearing a mask started coughing, prompting the man next to him to press an emergency alarm, Kyodo News reported.

“Fear is spreading among passengers. We plan to promote cough etiquette, such as wearing facial masks,” a city transport official told the news agency.

In Hong Kong, where people queued up for essential goods outside shops, three people with knives allegedly robbed a deliveryman outside a supermarket of precious toilet rolls reportedly worth more than 1,000 Hong Kong dollars ($128).

Governments have not always known how to handle the situation.

Eight Samoan citizens were refused entry at the nation's airport and sent back to Fiji reportedly because they’d transited through Singapore, which the government labels a “high risk” country, according to the Samoa Observer.

And when a Canadian teen collapsed at a building in Kuala Lumpur, Malaysia, a medical team in hazmat suits arrived. The health ministry later said it was a precautionary measure and the teen was virus free.


AP journalists Kim Tong-hyung, Jung-yoon Kim and Hyung-jin Kim in Seoul, South Korea; Mari Yamaguchi in Tokyo; Ralph Jennings in Taipei, Taiwan; and Eileen Ng in Kuala Lumpur, Malaysia; contributed to this story.

Foster Klug is AP's News Director for the Koreas, Japan, Australia and the South Pacific. He has covered Asia since 2005. Follow at www.twitter.com/APKlug

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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2020-02-21 06:16:01Z
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Kamis, 20 Februari 2020

Stock market news live: Stocks drop as coronavirus fears linger - Yahoo Finance

U.S. stocks dropped Thursday with the S&P 500 and Nasdaq pulling back from Wednesday’s record highs. Coronavirus developments and corporate earnings results remained key focuses for investors.

11:33 a.m. ET: Stock losses accelerate, Dow drops 300+ points

Losses in the three major indices accelerated as the session rolled on. Each of the S&P 500, Dow and Nasdaq was off more than 1%. Haven assets including gold and Treasuries climbed.

Here were the main moves in markets, as of 9:36 a.m. ET:

  • S&P 500 (^GSPC): -1.18% or -39.9 points to 3,346.25

  • Dow (^DJI): -1.13% or -330.72 points to 29,017.31

  • Nasdaq (^IXIC): -1.6% or -157.13 points to 9,657.82

  • Crude oil (CL=F): +1.76% or +$0.94 to $54.23 a barrel

  • Gold (GC=F): +0.75% or +$12.10 to $1,623.90 per ounce

9:36 a.m. ET: Stocks open lower, pulling back from records

U.S. stocks held onto losses from the overnight session, with each of the three major indices opening lower.

Losses in the Dow were led by health-care stocks including Pfizer and UnitedHealth. In the S&P 500, the health-care and communications sectors posted the largest declines.

Here were the main moves in markets, as of 9:36 a.m. ET:

  • S&P 500 (^GSPC): -0.12% or -4.2 points to 3,381.95

  • Dow (^DJI): -0.16% or -46.57 points to 29,301.46

  • Nasdaq (^IXIC): -0.26% or -26.18 points to 9,790.32

  • Crude oil (CL=F): +1.35% or +$0.72 to $54.01 a barrel

  • Gold (GC=F): +0.35% or +$5.70 to $1,617.50 per ounce

9:10 a.m. ET: L Brands shares slump after Sycamore Partners says it will acquire Victoria’s Secret brand

Private equity firm Sycamore Partners will take a controlling stake in Victoria’s Secret from parent-company L Brands, according to announcements from both companies Thursdays.

Sycamore is set to pay $525 million for Victoria’s Secret, boosting L Brands’ (LB) reserves to pay down its debt. The company also owns the Bath & Body Works brand, which has outperformed against Victoria’s Secret over the past several years.

The companies also announced that L Brands CEO and founder Les Wexner will step down as CEO and chairman of L Brands, but will remain on the board.

L Brands shares sank more than 11% in early trading following the announcement, likely due to the valuation agreed on for Victoria’s Secret as part of the deal. L brands had a market capitalization near $7 billion as of Wednesday’s close.

8:30 a.m. ET: Philadelphia Fed Business index far exceeds expectations in February

The Philadelphia Fed Business Outlook Survey jumped far more than expected in February, in another sign of resilience for the domestic manufacturing sector even as the coronavirus outbreak continues.

The headline index rose to 36.7 in February, marking the highest level in three years. This was well over the 11.0 reading expected and 17.0 print from January.

Advances were driven by a rise in new orders, with this subindex up 15 points to 33.6, the highest level since May 2018. However, the subindex tracking current employment trends decreased slightly during the month.

The Philadelphia Fed index came just days following a better than expected print on manufacturing activity in the New York region, based on the most recent Empire Manufacturing survey.

7:41 a.m. ET: Norwegian Cruise Line beats 4Q expectations, but warns of impact to 2020 results due to coronavirus

Norwegian Cruise Line (NCLH) posted fourth-quarter results that topped consensus expectations. However, its guidance for the full year missed estimates, with the ongoing coronavirus outbreak expected to take a bite out of the company’s bottom line.

Fourth-quarter adjusted earnings were 73 cents per share on sales of $1.48 billion, beating consensus estimates for adjusted EPS of 70 cents on sales of $1.43 billion, according to Bloomberg-compiled data.

For the full year, Norwegian said it expects adjusted EPS in a range of $5.40 to $5.60, with the midpoint of this range coming in below estimates for $5.54.

“The current known direct impact to operations from COVID-19 is expected to be approximately $0.75 per share and primarily includes customer incentive compensation and 40 cancelled, modified or redeployed Asia voyages across the Company’s three brands,” Norwegian said in a statement. “This includes the close-in redeployment of 21 cancelled Asia voyages on Norwegian Spirit which have been redeployed to the Eastern Mediterranean for summer 2020 with an extremely condensed booking window.”

Norwegian also noted that the coronavirus outbreak “continues to impact consumer travel sentiment regarding travel for cruises in Asia and throughout the company’s areas of operation worldwide.”

7:41 a.m. ET: Morgan Stanley to buy online brokerage E-Trade for $13 billion

Wall Street bank Morgan Stanley (MS) announced Thursday that it is going to acquire E-Trade (ETFC) in an all-stock transaction valued at $13 billion.

Under terms of the agreement, E-Trade stockholders will receive 1.0432 Morgan Stanley shares per E-Trade share, representing a per-share consideration of $58.74, or a near 31% premium over E-Trade’s closing prices Wednesday.

The newly combined companies will have more than $3 trillion in client assets, along with 8.2 million retail client relationships and accounts and 4.6 million stock plan participants, according to Morgan Stanley.

7:40 a.m. ET: Stock futures drift lower in early trading

U.S. stock futures edged lower in early trading, retreating slightly from Wednesday’s record highs for the S&P 500 and Nasdaq.

Coronavirus developments continue to be a focal point for investors, with new deadly infections outside of mainland China including in South Korea, Japan and Iran adding to concerns about the extent of the outbreak. The number of global deaths topped 2,100 among more than 75,000 cases as of Thursday, according to data from the European Center for Disease Prevention and control.

Here were the main moves during the pre-market session, as of 7:40 a.m. ET:

  • S&P 500 futures (ES=F): 3,380.75, down 6.5 points or 0.19%

  • Dow futures (YM=F): 29,283.00, down 54 points or 0.18%

  • Nasdaq futures (NQ=F): 9,711.25, down 22.25 points or 0.23%

  • Crude oil (CL=F): $53.45 per barrel, up $0.16 or 0.3%

  • Gold (GC=F): $1,620.20 per ounce, up $8.40 or 0.52%

NEW YORK, NEW YORK - FEBRUARY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on February 12, 2020 in New York City. The market closed up over 250 points as gains in tech companies and retailers outweighed concerns over the coronavirus. (Photo by Spencer Platt/Getty Images)

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2020-02-20 16:36:00Z
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Goldman Sachs warns of stock market correction - CNN

The investment bank told clients this week that a near-term correction, in which the market slides at least 10% from a recent peak, "is looking much more probable."
The thinking: Equity markets look "increasingly exposed" to disappointing earnings growth due to the new coronavirus outbreak, Goldman warns.
The number of companies that have lowered their guidance on profits for the first quarter is still in line with past years. But Apple's surprise update this week that it wouldn't hit its revenue target has put investors on edge.
Goldman Sachs (GS) notes that the global economy is expected to keep growing, and the United States is, too, despite the country already having experienced its longest economic expansion in 150 years. That creates a supportive environment for stocks. But the bank is concerned that earnings expectations could still be too rosy, especially given the exposure of global companies to the Chinese economy.
Apple (AAPL), it observes, has been "an important driver" of better-than-expected earnings results. Big Tech companies — Facebook (FB), Amazon (AMZN), Apple, Microsoft (MSFT) and Google (GOOG) — beat earnings expectations by 20% on average last quarter, compared with 4% for the average S&P 500 company.
"Any weakness to these and other companies would likely push earnings estimates lower," wrote Peter Oppenheimer, the firm's chief global equity strategist.
Additionally, depressed bond yields have made stocks look more attractive by comparison. Oppenheimer points to Germany's DAX, which has also hit an all-time high as the yield on the country's benchmark 10-year bond remains in negative territory. That raises the stakes for corporate earnings as well, he argues.

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2020-02-20 15:20:00Z
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Victoria's Secret to be sold for $525 million, CEO Les Wexner will step down - Fox News

Following a dip in sales and criticism about its billionaire founder, Victoria's Secret will be sold and have its founder step down as it seeks to move forward and find profit.

The company's owner, L Brands, confirmed to Fox News that the private-equity firm Sycamore Brands will buy 55 percent of Victoria's Secret for about $525 million. According to a statement from L Brands, the Columbus, Ohio company will keep the remaining 45 percent stake in order to, "enable its shareholders to meaningfully participate in the upside potential of these businesses."

Shares of L Brands slid 12 percent in premarket trading Thursday.

The selling price signifies a marked decline for a brand with hundreds of stores that booked about $7 billion in revenue last year.

FORMER VICTORIA'S SECRET EXECUTIVE ACCUSED OF HARASSING BELLA HADID, OTHER MODELS IN SHOCKING EXPOSÉ

Sales at its stores are in decline due to increasing competition and changing tastes. Victoria's Secret suffered a 12 percent drop in same-store sales during the most recent holiday season. L Brands said Thursday that same-store sales declined 10 percent at Victoria's Secret during the fourth quarter.

The Victoria's Secret Fashion Show was called off in 2019 following a dip in ratings and controversy surrounding it.

The Victoria's Secret Fashion Show was called off in 2019 following a dip in ratings and controversy surrounding it. (REUTERS/Charles Platiau)

"We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth," CEO Les Wexner said in the statement. "Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business. We believe that, as a private company, Victoria’s Secret will be better able to focus on longer-term results. We are pleased that, by retaining a significant ownership stake, our shareholders will have the ability to meaningfully participate in the upside potential of these iconic brands."

The company also confirmed that Wexner will step down after the transaction is completed and become chairman emeritus.

“Les Wexner is a retail legend who has built incredible brands that are household names around the globe. His leadership through this transition exemplifies his commitment to further growth of Bath & Body Works and Victoria’s Secret and driving overall shareholder value,” said Allan Tessler, lead independent Board director.

VICTORIA'S SECRET CEO RECEIVES OPEN LETTER FROM MODELS AFTER REPORTS OF 'MISOGYNY AND ABUSE' AT COMPANY

At its peak, the underwear and lingerie brand was known for its catalog filled with supermodels and a glitzy annual television special that mixed fashion, models and music. Amid its struggles, Victoria's Secret sales have continued to erode, its show was pulled from network television in Nov. 2019 due to controversy and low ratings and its stock - which traded at close to $100 in 2015 - now trades at around $24.

Victoria's Secret founder Les Wexner (left) will step down from his position after the company is sold.

Victoria's Secret founder Les Wexner (left) will step down from his position after the company is sold. (Astrid Stawiarz/Getty Images for Fragrance Foundation)

L Brands has also come under scrutiny because Wexner has ties to the late, disgraced financier Jeffrey Epstein, who was indicted on sex-trafficking charges.

Epstein started managing Wexner’s money in the late 1980s and helped straighten out the finances for a real estate development backed by Wexner in a wealthy suburb of Columbus. Wexner has said he completely severed ties with Epstein nearly 12 years ago and accused him of misappropriating “vast sums” of his fortune.

Wexner offered an apology at the opening address of L Brands' annual investor day in Columbus last fall, saying he was "embarrassed" by his former ties with Epstein.

Wexner is the longest-serving CEO of an S&P 500 company. He founded what would eventually become L Brands in 1963 with The Limited retail store, according to the company's website. Wexner owns approximately 16.71 percent of L Brands, according to FactSet.

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Sycamore has about $10 billion in assets under management. The firm's investment portfolio includes retailers such as Belk, Coldwater Creek, Hot Topic and Talbots.

The Associated Press contributed to this report.

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2020-02-20 14:30:38Z
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Dow futures slip as coronavirus death toll outside of China rises - MarketWatch

Stocks opened lower Thursday, retreating after the S&P 500 index and the Nasdaq booked all-time closing highs in the previous session.

Although markets have been heartened by daily reports of a slowing rate of the spread of COVID-19, the infectious disease that originated in Wuhan last year, deaths and cases of the disease outside of China may be sparking some anxiety.

How are benchmarks performing?

The Dow Jones Industrial Average DJIA, -0.07%   opened 43 points, or 0.2%, lower, while the S&P SPX, -0.03%   lost about 4 points to open 0.1% lower, near 3,381. The Nasdaq Composite COMP, -0.05%   was down about 18 points, 0.2%, at the open, near 9,799.

On Wednesday, the Dow advanced 115.84 points, or 0.4%, to 29,348.03. The S&P 500 rose 15.86 points, or 0.5%, to end at 3,386.15, marking a record finish. The Nasdaq Composite added 84.44 points, or 0.9%, to end the session at a record at 9,817.18, its second all-time closing high in a row.

What’s driving the market?

Some analysts attributed the lack of buying conviction early Thursday to high valuations after the most recent round of records for the benchmark U.S. indexes and news of deaths globally from the spread of the coronavirus from China.

A report from South Korea’s Yonhap News Agency said COVID-19 had claimed its first life and the mayor of the South Korean city of Daegu urged its 2.5 million people to refrain from going outside, according to the Associated Press. Reports indicate that cases of COVID-19 in South Korea have more than doubled to 104 in a day, with 35 additional cases cropping up in Daegu on Thursday. Japan also reported that two elderly passengers from a quarantined ship that had been hospitalized due to infectious disease have died, according to the country’s health ministry.

China’s central bank cut its benchmark lending rate on Thursday, as widely expected, in a move to lower financing costs for businesses. The corona virus epidemic has disrupted global supply chains and factory activity in China. The benchmark one-year loan prime rate was cut by 10 basis points, and the five-year loan prime rate by 5 basis points. The disease from coronavirus has infected nearly 75,000, and claimed more than 2,100 lives in China, according to the country’s National Health Commission.

Goldman Sachs’ chief global equity strategist Peter Oppenheimer said that the chances for a correction or pullback in U.S. stocks were rising due to the spread of the contagion out of Asia. “In the nearer term…we believe the greater risk is that the impact of the coronavirus on earnings may well be underestimated in current stock prices, suggesting that the risks of a correction are high,” the strategist said.

Still, investors may be willing to continue pushing stocks to new heights on hope for easy-money policies from the Federal Reserve and central banks globally.

“We think today’s pre- market softness is technical and is not likely to derail another mixed to positive session,” said Peter Cardillo, chief market economist at Spartan Capital Securities in a Thursday research note.

A pair of early-morning reports showed resilience in the U.S. economy. The number of Americans filing for unemployment benefits ticked up marginally in the most recent week but still hovered near multi-year lows. A gauge of manufacturing activity in the mid-Atlantic area surged to a two-year high in February. The new orders component of the Philadelphia Fed’s survey was at its highest since May 2018.

Read: Here’s the segment of the economy that may benefit from fears of coronavirus, analysts say

Which stocks are in focus?

Morgan Stanley MS, -4.07% is set to buy E-TRADE Financial Corp. ETFC, +23.86%  in an all-stock deal valued at $13 billion, according to the Wall Street Journal. Shares of E-Trade surged 25%, while those for Morgan Stanley fell nearly 4%.

Shares of L Brands Inc. LB, -0.78%  were down nearly 10% after announcing it is sellingVictoria’s Secret to private equity.

Virgin Galactic Holdings Inc. SPCE, +4.17%   shares rocketed higher, extending its 8-day win streak.

Shares of Zillow Group Inc. Z, +16.04%   jumped 16% after a set of upgrades following a fourth-quarter earnings call late Wednesday.

ViaconCBS Inc. VIAC, -18.28%   shares tumbled after the company’s fourth-quarter results missed analyst expectations.

Six Flags Entertainment Corp. SIX, -15.57%  shares lost about one-fifth of their value after the opening bell after the theme-park operator cuts its dividend.

How are other assets performing?

The price of a barrel of West Texas Intermediate crude for March delivery CLH20, +1.16% rose 1.3% to $53.97 a barrel on the New York Mercantile Exchange.

Gold for April delivery GCJ20, +0.51% was on pace for a sixth straight gain, rising 0.4% to trade at $1,618 an ounce, extending its climb above the psychologically important level at $1,600.

The U.S. dollar DXY, +0.01% was up fractionally against a basket of rival currencies at 99.73.

The benchmark U.S. 10-year Treasury note TMUBMUSD10Y, -1.85% was down 2.8 basis points at 1.54% even as 30-year bonds fell closer to an all-time low. Bond yields fall when prices rise.

In Europe, the Stoxx Europe 600 SXXP, -0.51% traded 0.5% lower, while the FTSE 100 UKX, +0.10% lost 1.1%.

Trade was mixed in Asia overnight. The China CSI 300 000300, +2.30%  rose 2.3%, Hong Kong's Hang Seng Index HSI, -0.17% fell 0.2%, while the Shanghai Composite SHCOMP, +1.84% advanced 1.8%. Japan’s Nikkei NIK, +0.34% advanced 0.3%, while South Korea’s Kospi 180721, -0.67% sank 0.7%.

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https://news.google.com/__i/rss/rd/articles/CBMibmh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS9kb3ctZnV0dXJlcy1zbGlwLWFzLWNvcm9uYXZpcnVzLWRlYXRoLXRvbGwtb3V0c2lkZS1vZi1jaGluYS1yaXNlcy0yMDIwLTAyLTIw0gFPaHR0cHM6Ly93d3cubWFya2V0d2F0Y2guY29tL2FtcC9zdG9yeS9ndWlkLzhDOUU0NTE2LTUzRDAtMTFFQS04Q0JGLTNBRjFGQzQwMUM5RQ?oc=5

2020-02-20 13:55:00Z
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