What’s going on in the world…
Market opens higher, set to erase yesterday’s sell-off. The virus scare in China seems to be getting worse with spreading, as a victim landed in Seattle yesterday. But the Market doesn’t seem to be too concerned about an outbreak. Boeing continues to face challenges, and its stock has put a dent on the DOW. Earnings keep coming in with a mixed tone. IBM grew revenues for the first time in years. Netflix gave disappointing guidance but the stock seems to be taking it in stride. JNJ reported a solid Qtr, but the stock is selling off after a big move to all-time highs. Tesla is now the second largest car company in the world, trailing just Toyota after surpassing Volkswagen. GM is rolling out a driverless shuttle. Apple is reportedly rolling out a lower-priced iPhone. India seems to be the target market. S&P 500 earnings are expected to post y/y decline in Q4. FactSet says this would mark a fourth straight quarter of contraction, meaning S&P already in an earnings recession, but other data providers say this would only be the second. Earnings are expected to rebound in 2020, with over 9% growth. We shall see. It’s the great debate for the Stock Market. Phase 2 talks are unlikely to commence anytime soon. President Trump seems to be moving his attention to Europe on trade.
Have a great morning,
Mike Frazier
