Apple, Coronavirus, AMD, Boeing and Nike - 5 Things You Must Know Tuesday

Stock futures rise modestly as investors prepare for earnings from such blue-chip companies as Apple, 3M and Lockheed Martin; the earnings reports could shift the market's focus away from the spread of the deadly coronavirus in Asia; Boeing secures $12 billion in financing, say reports.
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Here are five things you must know for Tuesday, Jan. 28:

1. -- Stock Futures Point to a Modest Wall Street Rebound

Stock futures pointed to a modest rebound for Wall Street Tuesday as investors prepared for a series of blue-chip corporate earnings, highlighted by an after-the-bell report from Apple (AAPL) - Get Report, that could temporarily shift the market's focus away from the spread of the deadly coronavirus in Asia.

Futures, however, pared earlier stronger gains after Hong Kong leader Carrie Lam said she would suspend high-speed rail travel from the China-controlled city to the mainland, while reducing flights and limiting individual travel permits, as part of the territory's efforts to limit the spread of the virus.

The economic impact of the deadly coronavirus, which has killed 106 people in China as infections have surged to more than 4,500, continues to linger over markets around the world, capping gains on Wall Street as investors move to safe-haven assets.

Contracts linked to the Dow Jones Industrial Average rose 111 points, futures for the S&P 500 were up 14.65 points and Nasdaq futures gained 59.75 points.

U.S. stocks finished sharply lower Monday and global markets tumbled as investors weighed both the human and economic costs of the accelerating spread of the deadly coronavirus. The Dow plunged 453.93 points, or 1.6%, to close Monday at 28,535.80.

The economic calendar in the U.S. Tuesday includes the first day of the Federal Reserve's two-day meeting. The central bank is expected to leave interest rates unchanged at its first meeting of 2020. An announcement on rates will be made Wednesday afternoon.

Tuesday's calendar also includes Durable Goods Orders for December at 8:30 a.m. ET, the S&P Corelogic Case-Shiller Home Price Index for November at 9 a.m. and Consumer Confidence for January at 10 a.m.

2. -- Apple, AMD, Lockheed, 3M and Starbucks Report Earnings 

Pfizer (PFE) - Get Report posted weaker-than-expected fourth-quarter earnings as sales from its UpJohn division, as well as a key pain treatment, fell sharply from a year earlier.

Pfizer said it expects 2020 revenue in the range of $40.7 billion to $42.3 billion, and adjusted earnings in the range of $2.25 to $2.35 a share.

3M (MMM) - Get Report posted weaker-than-expected fourth-quarter earnings as industrial sales weakness offset strength in the company's health care division.

Earnings reports are also expected Tuesday from Apple (AAPL) - Get Report, Advanced Micro Devices (AMD) - Get Report, eBay (EBAY) - Get Report, Lockheed Martin (LMT) - Get Report, United Technologies (UTX) - Get Report, Starbucks (SBUX) - Get Report, Xilinx (XLNX) - Get Report and Harley-Davidson (HOG) - Get Report

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3. -- Apple Plans 10% iPhone Production Boost in First Half of 2020

The tech giant has asked its suppliers to make up to 80 million iPhones over the first half of 2020, an increase of 10% from a year earlier, people familiar with Apple's planning told the Nikkei Asian Review.

Apple has booked orders for up to 65 million of its older iPhones, mostly from the iPhone 11 series, and up to 15 million units of a new cheaper model that it plans to unveil in March, Nikkei reported. Apple ordered about 73 million iPhones in the same period last year.

"This year is much busier than last year," an industry source told the Nikkei Asian Review.

Suppliers warned, however, that Apple's supply chain could be hit by the spread of the coronavirus in China's Hubei Province. Apple's main manufacturing centers are in nearby Henan and Guangdong provinces. 

Executives stressed to the Nikkei Asian Review that the coronavirus has created "massive uncertainties and challenges."

4. -- Boeing Secures $12 Billion of Financing

Boeing (BA) - Get Report has received commitments of more than $12 billion from banks that will help the planemaker with financing during the nearly year-long grounding of its 737 MAX jet.

CNBC reported Boeing has secured the commitment from more than a dozen banks. Boeing had sought a loan of at least $10 billion.

Boeing is expected to detail its financing strategy when it reports earnings before the market opens on Wednesday, according to CNBC.

Bloomberg reported the deal may be finalized as soon as Monday, and people familiar with the matter said the size of the loan was still to be determined.

Citigroup Inc. is leading the financing, Bloomberg reported.

5. -- Nike Pulls Kobe Bryant Gear From Online Store

Nike NKE has pulled all Kobe Bryant-branded gear from its website following the basketball legend's death Sunday in a helicopter crash in California.

Pages late Monday on the Nike.com site for Bryant-branded gear only offered gift cards for Los Angeles Lakers gear. All results for Bryant-branded shoes led to a generic Nike brand page with no Bryant-related items.

Bryant had an endorsement deal with Nike, which paid him $8 million a year over five years.

Among many Bryant-branded shoes released by Nike were the Kobe A.D. shoes, which first appeared after his retirement from the Lakers in 2016. Another model commemorated the retirement of both jersey numbers worn by Bryant as a Laker by emblazoning the No. 8 on the back heel of one shoe and the No. 24 on the back heel of the other.

The Nike.com website carried a tribute to Bryant on Monday, saying in part that he "was a beloved member of the Nike family. We will miss him greatly. Mamba Forever.”