Stocks Bounce Back, Trump Pledges Support, Coronavirus Crisis - 5 Things You Must Know Tuesday

Stock futures rise Tuesday following Wall Street's worst day since the financial crisis; President Donald Trump will ask Congress for a payroll tax cut and other measures to help an economy reeling amid the coronavirus outbreak; virus cases worldwide rise to above 114,000.
Author:
Updated:
Original:

Here are five things you must know for Tuesday, March 10:

1. -- Stocks Bounce Back as Trump Pledges Support Amid Virus Outbreak

Stock futures were rising Tuesday following Wall Street's worst day since the financial crisis after President Donald Trump said he would ask Congress for a payroll tax cut and that "major" economic announcements would be made Tuesday.

Trump said his administration will be meeting with House Republicans Tuesday to discuss a "substantial" payroll tax cut, and "getting help" for hourly workers, as well as working with companies on an economic relief plan in the face of spreading worries about the coronavirus Covid-19 outbreak and record-breaking declines in the financial markets.  

Treasury Secretary Steve Mnuchin, meanwhile, addressed the decline in stocks, saying he was confident about the strength of the U.S. economy, and that managing the situation was a matter of having the "proper tools for liquidity to get through the next few months."

Stocks tanked Monday, global stocks sank and bond yields declined sharply as investors' fears about the spread of the coronavirus deepened and oil prices plunged as producers argued over how to cut production and lift prices in the face of weaker demand.

The Dow Jones Industrial Average finished down 2,013 points, or 7.78%, to 23,851, the S&P 500 declined 7.6% and the Nasdaq sank 7.29%.

The Dow had its worst day since December 2008 and stocks closed Monday near bear-market territory, or 20% off recent highs.

Stock futures Tuesday were suggesting a partial rebound with contracts tied to the Dow Jones Industrial Average up 1,028 points, S&P 500 futures rising 123 points and Nasdaq futures jumping 364 points.

Oil prices recovered some of their losses after a record-setting tumble of 25% on Monday. 

2. -- Trump Aid Package Won't Include Travel Industry

The economic package to be unveiled by the Trump administration won't include aid for the travel industry, which has been hit hard amid the coronavirus outbreak, Bloomberg reported, citing people familiar with the matter.

While the White House wants to find a way to help airlines and hospitality companies which have suffered as customers curtail travel, administration officials remain uncertain about the best way to do so.

Trump’s economic team for now is uncertain of what steps are needed, according to people familiar with the matter, Bloomberg reported.

Shares of the major cruise line operators were rising in premarket trading Tuesday but Carnival  (CCL) - Get Report, Royal Caribbean  (RCL) - Get Report and Norwegian Cruise Line Holdings   (NCLH) - Get Report fell significantly Monday after the State Department issued a directive saying that “U.S. citizens, particularly travelers with underlying health conditions, should not travel by cruise ship.”

3. -- Coronavirus - The Latest

The number of confirmed global cases of the coronavirus has risen to 114,457, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths sit at 4,026.

The U.S. has 754 cases of the virus and deaths have climbed to 26.

In Italy, travel restrictions previously limited to the country’s north were extended everywhere beginning Tuesday, with soldiers and police enforcing bans, according to the Associated Press. Some 9,172 people have been infected in Italy and 463 have died.

Chinese President Xi Jinping visited Wuhan, the Chinese city at the center of the coronavirus outbreak, for the first time in a sign of confidence that the virus threat in China has diminished.

The leader of the World Health Organization, Dr. Tedros Adhanom Ghebreyesus, said Monday, “the threat of a pandemic has become very real.”

United Airlines  (UAL) - Get Report announced that customers who have booked flights with the airline between March 3 and March 31, can change it for free over the next 12 months. The airline also is waiving change fees for all tickets issued on or before March 2 for flights scheduled from March 9 through April 30. Delta Air Lines  (DAL) - Get Report announced similar measures on Monday.

Pearl Jam called off the first leg of its 17-date Gigaton tour, which was set to begin March 18 in Toronto because of coronavirus concerns. It's expected to be rescheduled.

4. -- Dick's Sporting Goods Reports Earnings

Earnings reports are expected Tuesday from Dick's Sporting Goods  (DKS) - Get Report, Cloudera  (CLDR) - Get Report and Vivint Solar VSLR.

The economic calendar in the U.S. Tuesday includes the NFIB Small Business Optimism Index for February at 6 a.m. ET.

5. -- Stitch Fix Plummets on Revenue Miss

Stitch Fix  (SFIX) - Get Report fell 34% in premarket trading Tuesday to $13.95 after the online clothing service's fiscal-second quarter revenue missed analysts' expectations and it issued a weak forecast.

The company posted earnings of 11 cents a share, down from 12 cents a year earlier, while revenue rose to $451.8 million from $370.3 million. Net revenue per client rose 8% to $501. 

Analysts had been expecting earnings of 7 cents a share on revenue of $452.6 million. Net revenue per client was forecast at $503.70.

Stitch Fix said it expects fiscal 2020 revenue of between $1.81 billion and $1.84 billion, below forecasts of $1.92 billion.