Despite a busy week ahead for earning reports, all eyes will be increasingly focused on China and how the fears over the spread of the deadly coronavirus may affect the global markets.
The markets were unsteady last week as the Wuhan coronavirus extended its reach across China. With three confirmed patients in the US over the weekend, the fears are only going to continue to grow. As health officials steady themselves for what may lie ahead, investors are also looking toward the repercussions of a potentially far-reaching global health crisis.
According to Julian Evans-Pritchard, senior China economist at Capital Economics, the outbreak will surely affect the economy. Now that travel bans are being put in place across China, the country will struggle with a disastrous drop in retail sales and tourism. The spread of the virus will only compound the problems associated with the ongoing trade conflict between China and the US.
Investors will also be closely watching Wednesday’s earnings report from Boeing (BA). The grounding of the 737 Max has clearly had a significant effect on the company’s fourth-quarter earnings. The aviation giant announced last week that they do not expect the aircraft to hit the skies again until at least the summer of 2020. While the company was profitable in the third quarter of 2019, revenue has since dropped.
Other earnings reports of note this week include Sprint (S) and Whirlpool (WHR) on Monday. 3M (MMM), Apple (AAPL), Harley-Davidson (HOG), Lockheed Martin (LMT), Pfizer (PFE), SAP (SAP), Xerox (XRX), eBay (EBAYL), and Starbucks (SBUX) are on tap to present on Tuesday. In addition to Boeing, Wednesday will also see reports from AT&T (T), GE (GE), Mastercard (MA), McDonald’s (MCD), Facebook (FB), Microsoft (MSFT), PayPal (PYPL), and Tesla (TXLZF). Amazon (AMZN), Blackstone (BX), Coca-Cola (KO), Hershey Foods (HSY), Raytheon (RTN), UPS (UPS), Verizon (VZ), Levi Strauss (LEVI), US Steel (X), and Visa (V) will report on Thursday. The week is rounded out on Friday with reports from Caterpillar (CAT), Chevron (CVX), Colgate-Palmolive (CL), and ExxonMobil (XOM).
Dil Bole Oberoi
