Google, Walt Disney, Coronavirus, Iowa Caucus and BP - 5 Things You Must Know Tuesday

Stock futures indicate Wall Street will trade higher for a second consecutive session; the  spread of the coronavirus outside of China slows; Google discloses for the first time revenue for its YouTube and cloud business; Walt Disney reports earnings.
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Here are five things you must know for Tuesday, Feb. 4:

1. -- Stock Futures Indicate a Strong Open for Wall Street

Stock futures indicated Wall Street would trade higher Tuesday for a second consecutive session as the spread of the coronavirus outside of China slowed and signs emerged of improving factory activity in major economies around the world.

China's National Health Commission has confirmed 425 deaths linked to the coronavirus, as well as 20,348 cases nationwide, most of which remain within the boundaries of Huebi province, home to Wuhan, the city that is ground zero for the outbreak. But the spread of the virus outside China's boundaries has slowed from late last week.

With U.S. stocks rallying Monday on the strength of stronger-than-expected manufacturing activity data for January and falling oil prices, which ease energy costs for emerging market economies, shares in Asia booked solid gains Tuesday, setting up Wall Street for a higher open.

Contracts linked to the Dow Jones Industrial Average rose 296 points, futures for the S&P 500 were up 34.90 points and Nasdaq futures gained 110.25 points.

The economic calendar in the U.S. Tuesday includes Factory Orders for December at 10 a.m. ET.

2. -- Alphabet Discloses Revenue for YouTube and Cloud

Shares of Alphabet  (GOOGL) - Get Report fell 2.81% to $1,441 in premarket trading Tuesday after the parent of Google posted mixed fourth-quarter earnings and surprisingly revealed detailed information about several of its important businesses.

Alphabet reported fourth-quarter earnings of $15.35 a share, well ahead of analysts' forecasts, but revenue of $46.08 billion, an increase of 17.3% from a year earlier, that came in below estimates of $46.9 billion.

The company also provided details on two of its key business units - YouTube and cloud - for the first time, with both showing solid revenue growth rates that, however, still disappointed investors.

YouTube revenue in the quarter was $4.72 billion and $15.1 billion for the year, lower than projections, while cloud revenue jumped 53% to $2.614 billion but trailed that of Microsoft's  (MSFT) - Get Report Azure platform. 

Search revenue rose 17% to $27.2 billion but also trailed growth rates at Facebook  (FB) - Get Report and Amazon.com  (AMZN) - Get Report

The earnings report was the company's first since Sundar Pichai was named CEO in December. 

"Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet," said Pichai in a statement.

"The bottom line here is that while it is right to be disappointed with the quarterly results, the little change to the long-term fundamental story combined with the disclosure improvement could help drive the stock higher down the road," said Jim Cramer and the Action Alerts PLUS team, which holds Alphabet in its portfolio. "But not in the near-term, because the rapid spread of the coronavirus has added a new level of uncertainty to the market, even though Alphabet's exposure to China is minimal. Our price target is under review."

3. -- Walt Disney, Ford and Chipotle Report Earnings

Earnings reports are expected Tuesday from Walt Disney  (DIS) - Get Report, Ford  (F) - Get Report, Snap  (SNAP) - Get Report, Chipotle Mexican Grill  (CMG) - Get Report, Match Group  (MTCH) - Get Report, Ethan Allen Interiors  (ETH) - Get Report, Allstate  (ALL) - Get Report, Clorox  (CLX) - Get Report, ConocoPhillips  (COP) - Get Report, Emerson Electric  (EMR) - Get Report, Royal Caribbean  (RCL) - Get Report and Ralph Lauren  (RL) - Get Report.

Walt Disney and Clorox are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

4. -- Iowa Caucus Results Are Delayed

The Iowa Democratic Party said it expects to release data from the Iowa caucuses later Tuesday after the results were delayed due to "inconsistencies" in reporting.

A statement from the Iowa Democratic Party earlier Monday evening said there were inconsistencies in reporting of three sets of data, but that the tabulating and results-checking process was sound.

Chairman Troy Price said early Tuesday the party was manually verifying its data against paper backups but said systems were taking “longer than expected.” He said the delays were the result of a reporting issue, not a hack or intrusion.

The delays could be a major embarrassment for the Democratic party as it attempts to identify a candidate to take on incumbent President Donald Trump in elections in November.

Even without official results, some candidates have tried to declare victory, reported the Associated Press, which hasn't called a winner of the caucuses.

5. -- BP Beats Earnings Estimates, Boosts Dividend

BP  (BP) - Get Report reported reported fourth-quarter underlying replacement cost profit of $2.57 billion, ahead of analyst' estimates, and the oil giant boosted its dividend by 2.4% despite lower oil and gas prices.

The report was the last under CEO Bob Dudley, who will leave BP after a decade as CEO and hand the reigns to Bernard Looney. .

“BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery,” said Dudley in a statement.

BP is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells BP? Learn more now.