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The major averages rallied at Tuesday’s open with the Dow rising 0.6%, or 150 points, while the S&P and NASDAQ rose 0.6% and 0.9%, respectively. The gains so far, however, barely dent Monday’s losses, which saw the Dow shed 1,031 points as investors feared that a surge in coronavirus cases outside of China could lead to a global economic slowdown. Home Depot, Microsoft and Apple were the leading gainers in the Dow.– Stevens
Data compiled by The Earnings Scout showed S&P 500 earnings estimates for the first quarter are now negative. Overall, analysts expect S&P 500 earnings to contract by 0.07%. Earlier this month, analysts expected growth of roughly 2.5%. The decline in earnings estimates comes as worries over how the coronavirus outbreak will impact corporate profits grow. “With 2020 EPS [estimates] dropping, future stock gains will require additional P/E multiple expansion,” said Nick Raich, CEO of The Earnings Scout, in a note. âImbert
- Jefferies downgraded Tesla to hold from buy.
- Nomura Instinet downgraded Nvidia to reduce from neutral.
- Citi raised its price target on Tesla to $312 from $222.
- Bank of America downgraded Micron to underperform from buy.
- Goldman Sachs initiated Reynolds Consumer Products as buy.
- Stephens downgraded Wayfair to equal weight from overweight.
- HSBC downgraded Anheuser-Busch Inbev to reduce from buy.
- Loop upgraded HP to buy from hold.
The U.S. 10-year Treasury yield hit a low of 1.347%, its lowest level since July 8, 2016 as investors remained cautious amid lingering worries over the coronavirus. The benchmark rate also traded below its all-time closing low around 1.36%. The 2-year U.S. rate dipped to 1.235%, its lowest levels since May 18, 2017. Germany’s benchmark yield fell to levels not seen since Oct. 10. âImbert, Francolla