Stock market live updates: Dow drops more than 100, all eyes on Tesla, coronavirus names fall

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The Dow fell about 123 points at the open, slipping from a record high reached in the previous session. The S&P 500 is down 0.3%, while the Nasdaq dipped 0.5%. The losses came as a sharp rise in reported coronavirus cases fueled concerns that the epidemic would disrupt the global economy. Travel companies with high China exposure led the decline, with Wynn Resorts and Las Vegas Sands down 2% each.  Tesla is down 2.3% at the open.— Li

Two analysts heralded news of Tesla’s new $2 billion stock offering as a smart move for CEO Elon Musk and the rest of the carmaker’s board. Dan Ives of Wedbush Securities told CNBC that he thinks the sale is “a smart strategic move. It takes any doomsday scenario around cash crunch, or limiting some of their strategic initiatives, off the table.” Meanwhile, Pierre Ferragu of New Street Research said that while he wasn’t expecting the cash grab, it makes sense that Tesla would want to bolster its balance sheet given its recent valuation surge. “Although we don’t see any reason for the company to consume material cash in coming quarters and years, the company remains exposed to macro fluctuations and would weather an economic downturn better (i.e. without slowing expansion plans) with a stronger balance sheet,” Ferragu wrote. — Franck

  • MKM initiated Starbucks as buy
  • Cowen upgraded Philip Morris to outperform from market perform
  • Evercore ISI raised its price target on Microsoft to $212 from $190
  • Goldman Sachs upgraded Caterpillar to buy from neutral
  • Raymond James upgraded Altice USA to strong buy from outperform

CNBC Pro readers can read more here. —Bloom

Markets reacted little to Thursday morning data that was close to expectations. The headline Consumer Price Index rose 0.2% in January, meeting expectations. On a year-over-year basis, CPI was up 2.5%, also in line. The core gain, excluding food and energy, increased 2.3% for the year, a notch above the 2.2% forecast by economist surveyed by Dow Jones. At the same time, weekly jobless claims rose 2,000 to 205,000, beneath the 210,000 estimate. Stock market futures continued to point to a 150-point drop for the Dow, while government bond yields held in negative territory. —Cox


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