Friday Watch

Evening Headlines

Bloomberg:     

• Cases Surge in Seattle; eBay Bans Face Masks: Virus Update.

• Outbreak Stretches U.S. Health System With Supply, Test Shortage.  

• NYC Urges Self-Isolation for Visitors to 5 Nations: Virus Update.  

• Central Banks Just Starting Virus Fight With Record Low Rates.

• Asia Stocks Slide, Bonds Soar After Wall St. Slump: Markets Wrap. The sell-off in global stocks resumed in Asia Friday as optimism about fiscal packages round the world to address the blow from the coronavirus evaporated. Thirty-year Treasury yields slid through 1.5% for the first time. Japanese equities sank about 2% and Australian shares retreated with the country’s bond yields. The S&P 500 Index fell more than 3% in Thursday’s session. Investor confidence remains in tatters as virus cases continue to rise across the U.S. despite efforts to contain the outbreak and its impact. The yen remains around the six-month high it reached Thursday. Japan’s Topix index lost 2% as of 9:48 a.m. in Tokyo. South Korea’s Kospi index retreated 1.8%. The S&P 500 Index dropped 3.4%. Futures added 0.1%. Australia’s S&P/ASX 200 Index lost 1.9%.  

• Five Things You Need to Know to Start Your Day.  

• Treasury 30-Year Bond Yield Falls Below 1.5% for First Time.  

• Lawmakers Say Banks Need Guidance on Virus-Related Workarounds.  

• U.S. Coal Use Is Plunging at Fastest Rate Since Eisenhower Era.  

• Oil Steadies as Market Waits for Clarity on OPEC Production Cut.

Wall Street Journal:

• Big Labor’s Big Crooks.

• Elizabeth Warren’s Exit Spurs Competition for Her Voters.

• Schumer and the War on Judges.

• Hemp Suppliers at Odds With Hazy Regulations.

• Schools Shut in Seattle Area as Virus Spreads.

• Virus Snarls Trans-Pacific Shipping, Ripples Through U.S. Business.

• White House to Send 500 ICE Agents to Aid Sanctuary City Arrests.

• NYPD Officials Say New Bail Law Is Leading to a Crime Increase.

Fox News:

• At Fox News Town Hall, president swipes at Biden's gaffes: 'There's something going on there'.

MarketWatch.com:      

• Mortgage rates fall to all-time low amid coronavirus concerns — here’s why Americans may not take advantage of them.  

• Fed’s Kaplan thinks U.S. can avoid recession from coronavirus.  

• AMD maintains guidance amid coronavirus scare, stock moves higher.

CNBC:

• Coronavirus live updates: S&P Global says $211 billion could be wiped out from Asia Pacific economies.

• Venture firm Sequoia is sounding the alarm about the economy again as coronavirus spreads.

• Dow tanks more than 950 points as Wall Street’s roller-coaster week continues.

• Robinhood client files lawsuit for negligence over two-day trading outages.

• Airline shares fall to lowest levels in years as coronavirus saps demand.

• Stocks making the biggest moves after hours: American Outdoor Brands, H&R Block, Okta and more.

• Hand sanitizer prices surge to $50 a bottle — here’s how to make it at home for under $2.

• JPMorgan is moving hundreds of traders to backup offices as Wall Street braces for coronavirus.

• 10-year Treasury yield hits all-time low below 0.9% as virus fears fuel demand for US debt.

Zero Hedge:

• Jamie Dimon Has Emergency Surgery Over 'Heart Tear'.

• "We Don't Know What's Going On": Wall Street Admits It Is Clueless.

• "Fake! Everything Is Fake!" Wuhan Residents Heckle Vice PM During Public Relations Stunt.

• Bloomberg Launching New Group To Support Democratic Nominee, Attack Trump.

• Studies Show Fracking Ban Would Wreak Havoc On US Economy. 

• "The Worst Is Yet To Come": Nomura Now Sees As Many As 1.5 Million Covid Cases By June.

• Trump Refuses To Answer Questions About Testing-Kit Shortages, Santa Clara County. Confirms Another 6 Cases, San Fran Shutters School: Live Updates.

• WHO: Coronavirus Is More Deadly Than Originally Thought.

• "Super Puke" - US Stocks Crash As Credit Markets & Yields Collapse.

Business Insider: 

• San Francisco's first 2 cases of coronavirus were just confirmed. Authorities say the disease is likely being transmitted in the city.

• JPMorgan CEO Jamie Dimon underwent emergency heart surgery.

• Costco says coronavirus fears gave it a sales boost and stirred up 'crazy' demand.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking Coronavirus: Map, data and timeline.

Night Trading 

• Asian equity indices are -2.25% to -1.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 69.75 +4.75 basis points.

• China Sovereign CDS 49.25 +6.25 basis points.

• Bloomberg Emerging Markets Currency Index  63.54 -.12%.

• FTSE 100 futures -1.62%.

• S&P 500 futures -.52%.

• NASDAQ 100 futures -.30%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• None of note

After the Close:

• None of note

Economic Releases
8:30 am EST

• The Trade Balance for Jan. is estimated at -$46.2B versus -$48.9B.

• Change in Non-Farm Payrolls for Feb. are estimated to fall to 175K versus 225K in Jan.

• The Unemployment Rate for Feb. is estimated at 3.6% versus 3.6% in Jan.

• Average Hourly Earnings MoM for Feb. is estimated to rise +.3% versus a +.2% gain in Jan.

10:00 am EST

• Wholesale Trade Sales MoM for Jan. 
  

3:00 pm EST

• Consumer Credit for Jan. is estimated at $16.5B versus $22.055B in Dec.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The German Factory Orders report and the (REGN) conference call could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the day.