Here are five things you must know for Wednesday, Feb. 12:
1. -- Stock Futures Rise as Coronavirus Infections Slow
Contracts tied to the Dow Jones Industrial Average were up 133 points, S&P 500 futures gained 113.15 points and Nasdaq futures rose 51 points.
The coronavirus outbreak - the World Health Organization said the official name for the disease caused by the new coronavirus is Covid-19 - has killed 1,116 people and infected an additional 45,200.
But the rate of infections is slowing and China's National Health Commission was hopeful that the spread of the virus around China, the world's second-largest economy, has peaked.
The broader impact of the virus on China's growth, as well as its influence on economies around the world, has yet to be quantified, however.
"We are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy," Federal Reserve Chairman Jerome Powell told lawmakers on Capitol Hill on Tuesday, adding that there will "very likely be some effects on the United States."
Powell didn't specifically say whether the coronavirus outbreak changed the Fed's expectations for U.S. economic growth.
When asked about the impact from the virus on the U.S. economy Powell said it was "too early to say."
2. -- Bernie Sanders Wins New Hampshire Primary
Sen. Bernie Sanders was declared the winner and Pete Buttigieg, the former mayor of South Bend, Ind., came in a very close second in a tight race for the Democratic presidential nomination in the New Hampshire primary on Tuesday.
Minnesota Sen. Amy Klobuchar placed third, gaining momentum after a strong debate performance last Friday.
Elizabeth Warren and Joe Biden posted disappointing fourth and fifth place finishes, respectively.
“We are gonna win because we have the agenda that speaks to the needs of working people across this country,” said Sanders, the 78-year-old senator from Vermont. “This victory here is the beginning of the end for Donald Trump.”
Based on New Hampshire's proportional assignment of delegates, Sanders will get eight delegates, Buttigieg gets eight, and Klobuchar will receive five.
3. -- Cisco Systems and CVS Health Report Earnings
CVS Health (CVS) - Get Report reported fourth-quarter earnings of $1.33 a share vs. a year-earlier loss of 37 cents. Adjusted earnings in the quarter of $1.73 topped analysts' forecasts by 5 cents. Revenue was $66.89 billion, higher than a year earlier and ahead of analysts' estimates of $63.93 billion.
Earnings reports are also expected Wednesday from Cisco Systems (CSCO) - Get Report, Applied Materials (AMAT) - Get Report, Shopify (SHOP) - Get Report, Teva Pharmaceutical (TEVA) - Get Report, Tradeweb Markets (TW) - Get Report, Equifax (EFX) - Get Report, TripAdvisor (TRIP) - Get Report, Barrick Gold (GOLD) - Get Report and Molson Coors (TAP) - Get Report.
The economic calendar on Wednesday includes the second day of testimony from Federal Reserve Chairman Jerome Powell before Congress at 10 a.m. ET and Oil Inventories for the week ended Feb. 7 at 10:30 a.m.
4. -- Lyft Falls as Outlook for Profitability Disappoints
Lyft (LYFT) - Get Report fell in premarket trading despite beating analysts’ fourth-quarter earnings and sales estimates as investors seek more clarity about the company’s path to profitability amid improvements by its bigger rival, Uber (UBER) - Get Report.
Lyft reported a loss of $1.19 a share in the quarter on revenue of $1.02 billion, while analysts were expecting the company to report a loss of $1.39 a share on revenue of $984.2 million. The company reported 22.9 million active riders, slightly ahead of Wall Street's estimate of 22.8 million.
Lyft also guided for first-quarter revenue of between $1.055 billion and $1.06 billion, a 36% to 37% increase from a year earlier. Full-year revenue, Lyft said, was estimated at between $4.575 billion and $4.65 million.
Analysts expect the ride-hailing company to post first-quarter revenue of $1.05 billion and annual revenue of $4.59 billion.
Lyft, unlike Uber, didn't move up its profitability timeline and the stock declined 5.27% to $51.10 in premarket trading.
5. -- Bed Bath & Beyond Is Feeling 'Short-Term Pain'
Bed Bath & Beyond (BBBY) - Get Report fell sharply in premarket trading Wednesday after posting a slump in holiday sales and narrower profit margins as new CEO Mark Tritton attempts to revive the struggling home-goods retailer.
Bed Bath & Beyond said comparable-store sales for the first two months of its fiscal fourth quarter, which ends in February, fell 5.4% from last year, which Tritton put down to a lack of inventory in key categories. Gross margins narrowed by around 3%, the company thanks in part to promotional sales designed to win back market share from rivals.
"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges," Tritton said. "However, we did achieve a notable positive shift in sales in our digital channels during this period, with growth of approximately 20%. I believe we can solidify this growth, while also addressing the broader stabilization of our business."
The stock slid 22.9% to $11.45 in premarket trading.