Stocks fall as earnings disappoint, China works to contain coronavirus


U.S. stocks fell Thursday morning, disappointing profits adding to lingering global concerns as China struggles to contain a potentially deadly disease that has so far disgusted hundreds of people.

9:36 a.m.ET: stocks open lower after series of weak profits, fears of coronavirus

Equity futures reversed lower at the start of the session and finally opened lower after weak results from airlines and consumer companies.

In China, fears over the spread of a potentially deadly coronavirus and cancellations of the ensuing Lunar New Year celebrations in Beijing, Wuhan, Zhejiang and Macao have led the Shanghai Composite Index to its worst last day of Lunar New Year for at least 30 years.

Here's where the US markets opened Thursday morning:

  • S&P 500 (^ GSPC): -0.52% or -17.28 points to 3,304.47

  • Dow (^ DJI): -0.64% or -187.84 points to 28,998.43

  • Nasdaq (^ IXIC): -0.5% or -45.88 points to 9,335.37

  • Crude oil (CL = F): -2.86% or – $ 1.62 to $ 55.12 per barrel

  • Gold (GC = F): + 0.03% or + $ 0.40 to $ 1,557.10 per ounce

9:03 a.m.ET: Procter & Gamble shares fall on weak quarterly sales

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Large consumer Procter & amp; Gamble (PG) posted disappointing organic sales results for its second fiscal quarter, overshadowing a more optimistic outlook for the year. "data-reactid =" 29 "> Consumer giant Procter & Gamble (PG) released disappointing organic sales results for its second fiscal quarter, overshadowing more optimistic prospects for all of us. year.

The Dow component said overall organic sales had increased 5% from last year in the last three months of 2019, with no growth expectations of 5.6%. The company's beauty, grooming, health care and fabric and home care segments all met or exceeded organic sales expectations.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The first line omission was caused by The weakness of the baby, feminine and family products segment of Procter & amp; Gamble, with organic sales up only 1% during the quarter against an expected increase of 1.5%. Clark (KMB), which houses brands such as Kleenex and Huggies, also highlighted the weakness of its child care segment in the Thursday morning results, noting that volumes dropped from mid-digit to single digit during of the quarter. "data-reactid =" 31 "> The shortfall is due to the weakness of the baby, female and family products segment of Procter & Gamble, with organic sales up only 1% during the quarter versus an expected 1.5% increase Competitor Kimberly-Clark (KMB), which houses brands including Kleenex and Huggies, also pointed to weakness in its baby and child care segment in the results Thursday morning, noting that volumes dropped by a single mid-figure during the quarter.

Procter & Gamble raised its forecast for organic revenue for the entire year to a range between 4 and 5%, compared to 3 to 5% previously. He said he expects basic earnings per share to increase by 8-11%, up from 5-10% previously.

Procter & Gamble shares fell 1.8% at the start of the session.

8:45 a.m.ET: U.S. airlines hit by prolonged shutdown of Boeing 737 Max

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Southwest (LUV) and American Airlines (AAL), each cited the extended grounding of the Boeing 737 Max (BA) as resulting in increased costs and additional operational disruptions until the end of last year and until the beginning of this year. Boeing said earlier this week that it does not expect the plane to return to the air until at least mid-year. "Data-reactid =" 36 "> Southwest (LUV) and American Airlines (AAL) each cited the extended groundings of Boeing. The 737 Max (BA) resulted in increased costs and additional operational disruptions until the end of last year and until the beginning of this year. Boeing said earlier this week that it did not expect the plane to return in the year. Air before at least the middle of the year.

The Southwest, which had been the 737 Max's largest domestic operator, saw its net profit drop 21% in the fourth quarter to reach $ 514 million compared to last year, with costs in year full up 7.7% due in large part to scheduling interruptions due to the lack of global ground aircraft. The company said it expects costs per available seat mile (CASM) to increase by 6 to 8% in the current quarter.

American Airlines exceeded consensus expectations on upper and lower earnings and saw net income increase in the fourth quarter compared to last year, but also was not immune to impacts of the 737 Max groundings. The company said it had canceled 10,000 flights in the fourth quarter alone due to the absence of the plane.

8:30 a.m.ET: first jobless claims increase less than expected

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Weekly unemployment claims have increased less than expected for the week ended January 18, depending on Weekly update from the Labor Department."data-reactid =" 41 "> Weekly jobless claims have increased less than expected for the week ended January 18, according to the Labor Department's weekly update.

New jobless claims rose from 6,000 to 211,000 during the week, below the expected increase to 214, according to Bloomberg consensus data. This lowered the four-week moving average – a less volatile measure of the underlying trends in unemployment in the labor market – from 3,250 to 213,250.

Persistent jobless claims fell more than expected for the week ended January 11. They went from 1.768 million to 1.731 million the previous week, against an expectation of consensus to only 1.756 million.

7:04 a.m.ET: Stock futures are virtually flat as China expands travel restrictions to contain coronavirus

The future of US stocks changed little Thursday morning after Chinese health officials extended travel restrictions to try to contain a potentially deadly coronavirus.

Chinese authorities on Thursday halted travel to and from the city of Wuhan, the region believed to be the source of the SAR virus. The travel restriction comes as hundreds of millions of Chinese citizens prepare for gravel for the Lunar New Year holidays this week.

The stock market reaction to the rapid development of coronaviruses was mainly consolidated among Asian equities, with the Shenzhen composite in mainland China falling 3.5%. Crude oil prices also fell by more than 1%, fearing the disease would impact global growth.

The death toll from the virus was 17 Wednesday, and more than 540 cases had been confirmed.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the United States, investors have digested the last batch of corporate results, including those of Southwest Airlines (LUV) and Procter and Gamble (PG). Economic data, including initial weekly jobless claims and the Conference Board's Leading Economic Index, is expected to be released later this morning. "Data-reactid =" 54 "> In the United States, investors have digested the latest batch of results for companies, including Southwest Airlines (LUV) and Procter and Gamble (PG). Economic data, including Initial weekly unemployment claims and the Conference Board's Leading Economic Index are expected to be released later this morning.

Here are the main movements during the pre-marketing session at 7:14 a.m.ET:

  • S&P Futures (ES = F): 3,319.5, down 0.25 point or 0.01%

  • Dow Futures (YM = F): 29,121, down 19 points or 0.07%

  • Nasdaq Futures (NQ = F): 9,200.5, up 4.75 points or 0.05%

  • Crude oil (CL = F): $ 55.79 per barrel, down $ 0.95 or 1.67%

  • Gold (GC = F): $ 1,553.20 per ounce, down $ 3.50 or 0.22%

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on November 18, 2019. REUTERS / Brendan McDermid

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on & nbsp;Twitter, & nbsp;Facebook, & nbsp;Instagram, & nbsp;Flipboard, & nbsp;LinkedInand & nbsp;reddit."data-reactid =" 74 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Find live stock quotes and the latest business and financial news"data-reactid =" 75 ">Find live stock quotes and the latest business and financial news



Leave a Reply

Your email address will not be published. Required fields are marked *