Sprint, Lyft, Jerome Powell, Coronavirus, Boeing- 5 Things You Must Know Tuesday

Stock futures rise as Wall Street looks to further its rally; Fed Chairman Jerome Powell to testify before Congress; Lyft and Under Armour report earnings.
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Here are five things you must know for Tuesday, Feb. 11:

1. -- Stock Futures Rise as Wall Street Looks Past Coronavirus Concerns

Stock futures rose Tuesday as Wall Street looked to further its rally even as forecasts for China's growth are slashed as the coronavirus continues to spread through the world's second-largest economy.

Contracts tied to the Dow Jones Industrial Average were up 78 points, S&P 500 futures gained 8.75 points and Nasdaq futures rose 40.50 points. The Nasdaq and S&P 500 closed at record highs on Monday.

China's National Health Commission said the number of deaths from the virus has surpassed 1,000, while the number of new infections has climbed beyond 42,600.

With factories shuttered, businesses closed and travel affected, China's first-quarter GDP likely will slow considerably, or possibly even contract, if the spread of the virus continues to accelerate into March, analysts have cautioned.

Federal Reserve Chairman Jerome Powell is likely to address worries that slowing growth in China could hamper the U.S. economy's expansion in testimony Tuesday before the  House Financial Services Committee in Washington.

The Fed last week warned that "spillovers" from the coronavirus outbreak are posing a fresh "risk" to both the global and U.S. economic outlooks.

In its monetary report to Congress, the central bank said the recent emergence of the coronavirus “... could lead to disruptions in China that spill over to the rest of the global economy.”

2. -- Lyft and Under Armour Report Earnings

Earnings reports are expected Tuesday from Lyft  (LYFT) - Get Report, Under Armour  (UAA) - Get Report, Hasbro  (HAS) - Get Report,  Denny's  (DENN) - Get Report, Hilton  (HLT) - Get Report, AutoNation  (AN) - Get Report, Goodyear Tire & Rubber  (GT) - Get Report and Western Union  (WU) - Get Report.

Besides Jerome Powell's testimony, the first of two days the Fed chairman will appear before Congress, the economic calendar includes the Job Openings and Labor Turnover Survey for December at 10 a.m. ET.

3. -- Sprint Runs Higher on Report T-Mobile Merger to Get OK From Federal Judge

Sprint  (S) - Get Report was surging more than 60% in premarket trading Tuesday following reports its long-awaited merger with T-Mobile US  (TMUS) - Get Report finally will be approved by a federal court judge over the objections of several state attorneys general.

The Wall Street Journal was the first to report that Judge Victor Marrero of the U.S. District Court for Southern New York could rule on the $26 billion all-stock merger as early as Tuesday, allowing the third- and fourth-largest U.S. wireless carries to combine following nearly two years of dispute related to competition and pricing concerns.

State attorneys general have argued the merger of Sprint and T-Mobile would lead to higher cellphone bills for customers.

Sprint jumped 62.92% to $7.82 in premarket trading, while T-Mobile rose 8.85% to $92.01.

4. -- Boeing's MAX Needs 'Several Quarters' to Begin Flying Again

A Boeing  (BA) - Get Report executive said it will take “several quarters” for the 737 MAX fleet to begin flying again following the aircraft's grounding nearly a year ago after two deadly crashes.

“We are not going to over-stress the system,“ Randy Tinseth, Boeing’s vice president for marketing, told Bloomberg in an interview at the Singapore Airshow.

Boeing suspended production of the 737 MAX, the company's best-selling aircraft in
January, following the crashes that were linked to a software issue.

Last week, Boeing said it discovered a new software problem with the 737 MAX airliner, but the Chicago company said the issue wouldn't stop it from getting the plane back into the air in mid-2020.

Separately, the Federal Aviation Administration's top official told reporters the agency was  narrowing the issues needed before it could conduct a certification test flight on the 737 MAX, but won't commit to a timetable for lifting a flight ban.

“We are following a very diligent process and it is important that we stay focused on the process and not on the timeline,” FAA Administrator Steve Dickson said, Reuters reported.

5. -- Google's Head of HR Stepping Down Amid Employee Unrest

Alphabet's  (GOOGL) - Get Report Google confirmed that its head of human resources, Eileen Naughton, would be stepping down later in 2020 amid employee unrest over some of the tech giant's top-level decisions.

Anger has risen over Google's alleged handling of sexual harassment claims, the firing of employees who organized protests against the company, and the elimination of weekly all-hands meetings at which employees confronted Google executives about sensitive topics, reported Fortune, which was the first to report the news.

The company said Naughton would take another role within Google but specifics weren't provided.

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