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Wall Street To Open In The Red As Corona Fears Intensifies

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The fear of Corona virus continues to influence markets as there was a sharp increase in the number of deaths in Hubei province of China, which is considered the primary source of the outbreak. The corona virus outbreak has reportedly resulted in loss of more than $440 million in China's market value.

The new corona infections jumped to more than 14,000 and the deaths reported on the day were 242. The total global death toll is 1350 with infections in more than 60000 people. Meanwhile, there are reports that China started sacking officials who failed to contain the outbreak.

Asian shares finished lower, while European shares are trading in the red.
Initial signs from the U.S. Futures Index suggest that Wall Street is aiming to open lower.

Jobless Claims, Consumer Price Index and a couple of Fed Stocks are the major announcements on the economic front.

On the earnings segment, Applied Materials, Cisco and NetApp are among the companies releasing their quarterly results after the close of today's trading on Thursday.

As of 8.05 am ET, the Dow futures were losing 173.00 points, the S&P 500 futures were down 20.25 points and the Nasdaq 100 futures were falling 77.50 points.

The U.S. major averages closed higher on Wednesday. The Dow jumped 275.08 points or 0.9 percent to 29,551.42, the Nasdaq advanced 87.02 points or 0.9 percent to 9,725.96 and the S&P 500 climbed 21.70 points or 0.7 percent at 3,379.45.

On the economic front, the Labor Department's Consumer Price index for January will be issued at 8.30 am ET. The consensus is for growth of 0.2 percent, unchanged from the prior month.

The Labor Department's Jobless Claims for the week will be issued at 8.30 am ET. The economists are looking for consensus of 211K while it was 202K in the previous week. New claims change in the prior week was down 15K.

The Energy Information Administration or EIA's Natural Gas Report for the week will be published at 10.30 am ET. In the prior week, the change was decline of 137 bcf.

30-year Treasury inflation-indexed securities or TIPS auction will be held at 11.00 am ET. 30-year Bond Auction will be held at 1.00 pm ET.

The Fed Balance Sheet for the week is expected at 4.30 pm ET. In the previous week, the level was $4.167 trillion.

The Fed Money Supply for week is scheduled at 4.30 pm ET. The M2 weekly change was up $34.8 billion.

Dallas Fed President Robert Kaplan will make a public speech at 12.45 pm ET and New York Fed President John Williams will speak at 5.30 pm ET.

In the corporate sector, Pepsico Inc. reported a profit for the fourth-quarter that sharply declined from last year, which included a huge tax benefits. However, both core earnings and revenue beat analysts' estimates. The company has provided weaker-than-analysts estimations for 2020.

The food and beverage giant reported that its fourth-quarter net income attributable to the company plunged to $1.77 billion or $1.26 per share from $6.85 billion or $4.83 per share in the same quarter last year. The prior year quarter included a tax benefits of $4.39 billion.

Core earnings for the quarter were $2.04 billion or $1.45 per share compared to $2.12 billion or $1.49 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter grew 5.7 percent to $20.64 billion from $19.52 billion last year. Analysts expected revenues of $20.27 billion for the quarter. Organic revenue growth was 4.3 percent.

For 2020, the company expects to deliver 4 percent organic revenue growth and 7 percent core constant currency earnings per share growth. The company projects annual core earnings per share of $5.88, a 6 percent increase compared to 2019 core earnings per share of $5.53. Analysts expect annual earnings of $5.95 per share.

The company announced a 7 percent increase in its annualized dividend to $4.09 per share from $3.82 per share that is expected to be paid in June 2020.

Asian stocks ended broadly lower on Thursday. Chinese shares ended lower. The benchmark Shanghai Composite Index fell 20.83 points, or 0.7 percent, to 2,906.07, while Hong Kong's Hang Seng index shed 93.66 points, or 0.3 percent, to close at 27,730.

Japanese stocks gave up early gains to end lower. The Nikkei 225 Index slipped 33.48 points, or 0.1 percent, to 23,827.73, while the broader Topix closed 0.3 percent lower at 1,713.08.

Australian markets ended slightly up. The benchmark S&P/ASX200 Index edged up 15.00 points, or 0.2 percent, to 7,103.20, after powering to a record 7,145.80 in early trading. The boarder All Ordinaries Index inched up 19.30 points, or 0.3 percent, to 7,204.60.

European shares are trading lower. CAC 40 of France is down 50.99 points or 0.83 percent. DAX of Germany is losing 96.15 points or 0.70 percent. FTSE 100 of England is down 125.88 points or 1.68 percent. Swiss Market Index is declining 35.15 points or 0.32 percent.

Euro Stoxx 50 that provides a Blue-chip representation of supersector leaders in the Eurozone, is sliding 0.98 percent.

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