Bear Radar

Style Underperformer:

• Large-Cap Growth -3.3%

Sector Underperformers:

• 1) Oil Service -6.8% 2) Airlines -6.3% 3) Healthcare Providers -4.7%

Stocks Falling on Unusual Volume: 

• DBX, DRH, WIFI, HYT, CODI, CSQ, MSFT, DIS, WES, BWA, VIAC, FLS, FUN, APPN, SABR, MTDR, MS, VOYA, SONO, ETFC, NET, NVDA, SNBR, DAL, UNH, RCL, W, IGT, SE, CCL, Z, NCLH, STMP, ZG, SAVE, AAL, FSLY, GPK, CRI, H, BKNG and FTAI

Stocks With Unusual Put Option Activity:

• 1) DISH 2) IWF 3) XLK 4) EWY 5) SOXX

Stocks With Most Negative News Mentions:

• 1) GPK 2) TLRY 3) CCL 4) COMM 5) MGM

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Mid-Cap Value -2.8%

Sector Outperformers:

• 1) Gold & Silver +.2% 2) Utilities -.9% 3) Telecom -1.0%

Stocks Rising on Unusual Volume:

• VIR, NGM, UTHR, MAG, ZYXI, TVTY, CTB, REGN, GILD and VSLR

Stocks With Unusual Call Option Activity:

• 1) AFL 2) EQT 3) TUR 4) RSX 5) PANW

Stocks With Most Positive News Mentions:

• 1) GILD 2) CTB 3) NGM 4) DIN 5) PEP

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +43.8% Above 100-Day Average
• 0 Sectors Rising, 11 Sectors Declining
• 10.2% of Issues Advancing, 88.7% Declining
• 79 New 52-Week Highs, 224 New Lows
• 62.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.3%
• Vix 24.8 +45.4%
• Total Put/Call 1.12 +2.75%
• TRIN/Arms 1.30 +17.1%

Monday Watch

Today's Headlines

Bloomberg:

• As Pandemic Looms, World’s Top Disease Fighter Engages Xi.  

• China Pushes Factories to Reopen, Risking Renewed Virus Spread.

• Korea Confirms 161 New Cases as Outbreak Spreads: Virus Update.  

• South Korea Companies Prepare for Worst After Samsung Virus Case.   

• Won, Stocks Drop After Korea Says Disease Alert Level Highest.

• Coronavirus Hits Israel, Raising Concern About Election Impact.  

• Hong Kong Companies Have No Safety Net in Fight for Survival.

• Dazed Italy Bickers as It Seeks Answers for Coronavirus Spread.

• Peter Navarro Says Coronavirus Shows U.S. Offshored Too Much.

• World-Changing Virus, Climate Threats Dominate G-20 Gathering.

• Stocks Slide as Virus Case Rise Heightens Concern. U.S. equity futures sank with Asian shares and gold surged after the number of coronavirus cases outside of China increased and concern grew that global economic growth could take a more sustained hit. Seoul and Sydney saw the brunt of losses, down more than 2%, with declines more muted in Hong Kong and Shanghai. Weakness in S&P 500 Index and Euro Stoxx 50 futures also reflected the caution from traders to news over the weekend that finance chiefs and central bankers from the world’s largest economies see downside risks to the global economy persisting. The Australian dollar chalked up a fresh 11-year low and the offshore yuan extended its recent slide. Crude oil tumbled almost 3%. Japan is shut for a holiday. Futures on the S&P 500 slid 1.2% as of 9:25 a.m. in Hong Kong. The underlying gauge fell 1.1% on Friday. South Korea’s Kospi index dropped 2.6%. Australia’s S&P/ASX 200 Index declined 2.1%. Hong Kong’s Hang Seng Index declined 1%. The Shanghai Composite Index lost 0.4%. Euro Stoxx 50 futures retreated 1.4%.  

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

• G-20’s Growth, Korea on High Alert, Digital Yuan Worry: Eco Day.

• Oil Slumps Most in Two Weeks as Global Virus Spread Quickens.  

• With Gold Surging, Miners Face Payouts Versus Production Dilemma.

Wall Street Journal:

• Nevada Win Gives Sanders the Inside Track

• Boeing Offers More Support for 737 MAX Suppliers

• AI Is the Next Workplace Disrupter—and It’s Coming for High-Skilled Jobs

• Falling Fuel Costs Buoy U.S. Consumers

• Tapping Trump’s Anger About 2016 Surveillance, White House Seeks Overhaul of Spying Law.

MarketWatch.com:

• Intuit eyes Credit Karma in what would be its biggest-ever acquisition.

• IMF lowers global economic growth forecast, warns of ‘more dire scenarios’.

• MSNBC’s Chris Matthews compares Bernie Sanders’ victory in Nevada to Nazi invasion — now people want him fired.

Fox News:

• Briefer may have overstated Russian efforts aimed at helping Trump win election, official says.

• Candace Owens 'cannot look away' from party chaos with front-runner Sanders.

CNBC:

• Coronavirus live updates: Turkey closes Iran border, South Korea on high alert.

• Op-Ed: Bernie Sanders is the front-runner because of how we raised our kids.

• Biden, Buttigieg and Bloomberg take shots at projected Nevada caucus winner Bernie Sanders.

• Economic impact of coronavirus will be clearer in ‘three or four weeks,’ Mnuchin says.

Zero Hedge:   

• Futures Plunge, Gold Soars As Covid-19 Contagion Craters Complacency.

• Coronavirus Panic Goes Global: S.Korea Warns Of "Watershed Moment" As Italy Confirms 3rd Death, Cancels Venice Carnival: Live Updates.

• "Big Hit" – Xi Warns Of Economic Fallout From Covid-19 Outbreak.

• 10-Year Treasury Yield Plunges To Just 1 Basis Point Away From Recession "Tipping Point".

• World's Biggest Oil Hedge Fund Plunges 8% In January Following Two Years Of Losses.

• China's 'Fake' Coronavirus Numbers Exposed: Doctor In Hunan Confirms 50 New Cases, Only One Reported.

• Obama DHS Whistleblower Found Dead On Side Of California Highway, Police Rule Suicide.

• "A Piece Of Propaganda": Baltimore Republicans Outraged After High School History Lesson Compares Trump To Nazis, Communists.

• Chinese Scientists Find Coronavirus Did Not Originate In Wuhan Seafood Market.

• Supply Chain Disruptions Impact On Global Growth: $570 Billion & Growing...

• "It Will Be Really, Really Bad": China Faces Financial Armageddon With 85% Of Businesses Set To Run Out Of Cash In 3 Months.

• Iran's Hardliners Win Landslide Victory In Low Turn-Out Parliamentary Elections.

• iMask? Companies Race To Build Next-Gen Facewear To Block Germs

• Smearing Bernie Sanders.

• Key Takeaways From Nevada Democratic Caucuses.

• "Crazy Amount Of Requests:" Private Jet Demand Soars As Elites Flee Asia Amid Pandemic.

• South Korea Reports 123 New Coronavirus Cases; Italy Declares State Of Emergency: Virus Updates.

• It Begins: Samsung Shutters Smartphone Factory In South Korea After Virus Outbreak.

• Behold The "Green" Scam: Here Are The Most Popular ESG Fund Holdings.

• Researchers Find 61.5% Of Coronavirus Patients With Severe Pneumonia Won't Survive.

• 401(k) Millionaires Surge To Record Level Under Trump.

Business Insider:

• Bernie Sanders' Nevada win cements his frontrunner status.

• Huawei is downplaying coronavirus impact on its smartphone sales, but experts say it will suffer more than Apple.

• The coronavirus outbreak could cost Vietnam $4 billion in lost tourism in just 3 months, according to the country's department of tourism.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking coronavirus: Map, data and timeline.

Night Trading

• Asian indices are -2.25% to -1.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 50.75 +3.0 basis points.

• China Sovereign CDS 36.75 +2.0 basis points.

• Bloomberg Emerging Markets Currency Index 64.39 -.09%.

• FTSE 100 futures -1.03%.

• S&P 500 futures -1.23%.

• NASDAQ 100 futures -1.64%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (AWI)/.86

• (CRI)/2.89

• (CTB)/.67

• (DDS)/2.85

After the Close:

• (HTZ)/-.27

• (HPQ)/.54

• (INTU)/1.02

• (ITRI)/.55

• (GH)/-.30

• (PANW)/1.12

• (RCII)/.57

• (SHAK)/-.01

• (THC)/.98

• (TREX)/.51

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for Jan. is estimated to rise to -.16 versus -.35 in Dec.

10:30 am EST

• The Dallas Fed Manufacturing Activity Index for Feb. is estimated to rise to 0.0 versus -.2 in Jan.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The German IFO Business Climate Index, JMP Securities Tech Conference, JPMorgan High Yield Conference, Citi Asset Mangers/Broker Dealers Conference, Wolfe Research Auto/Auto Tech Conference, BofA Merrill Animal Health Conference and the Mobile World Congress could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are sharply lower, weighed down by technology and commodity 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 week.

Weekly Outlook

• Wall St. Week Ahead by Reuters.
• Global Economy Week by Bloomberg. 
• The Week Ahead by Yahoo. (video)
• Stocks to Watch Next Week by Seeking Alpha.
• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly lower on coronavirus fears, global growth concerns, oil weakness, European/Emerging Markets/US High-Yield debt angst, profit-taking and technical selling. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

Today's Headlines

Bloomberg: 

• Millions of Chinese Firms Face Collapse If Banks Don’t Act Fast.

• Hubei Reports 96 Deaths; South Korea Cases Climb: Virus Update.  

• U.S. Raises Japan Warning as Infections Spread: Virus Update.  

• Italy Regions Close Universities as Coronavirus Reaches Milan.

• The Coronavirus May Be ‘Disease X’ Health Experts Warned About.

• The Virus Is Interrupting Supply Chains From Watches to Lobsters.  

• Globalization Comes Under Fire Amid Coronavirus ‘Stress Test’.

• Sanders Wins Nevada Caucus With Broad Support From Hispanics.

• Soak-the-Rich Tax Plans Take Hold in the Entire Democratic Field.  

• Dumb Money Beats Smart Picking Big Winners in Stocks This Year.  

• No Evidence Russia Helping Trump, Top U.S. Security Aide Says.

Wall Street Journal:

• Buffett’s Berkshire Hathaway Stock Underperforms the Most Since 2009.

• Google Plots Course to Overtake Cloud Rivals.

• Italy, South Korea Work to Contain Coronavirus Outbreaks.

• Trump’s India Visit to Stress Personal Ties Over Economic Issues.

• Do Digital Devices in the Classroom Do More Harm Than Good?

• California Fights U.S. Over Abortion-Coverage Mandate.

CNBC:

• CDC prepares for coronavirus to become pandemic and businesses, schools need to be closed.  

• Dow drops more than 200 points, posts losing week as coronavirus fears resurface. 

• Free trading fuels rampant speculation in stocks like Tesla and Virgin Galactic .

• Bloomberg offers to release women from 3 NDAs after Warren roasts him at Dem presidential debate.  

• DuPont ramps up safety suit production as coronavirus causes shortages in China.

Barron's:

• Had bullish commentary on (CAT).

• Had bearish commentary on (I) and (SPCE).

MarketWatch.com:  

• Wall Street has boosted 2020 estimates for these S&P 500 companies the most.

Fox News:

• Sanders will win Nevada caucuses, Fox News projects, furthering the democratic socialist's lead.

• These 5 nations are still clinging to Communism – here’s how they’re doing.

• Americans infected with coronavirus head to US without POTUS permission.

Zero Hedge: 

• Italy Declares "National Emergency" As Coronavirus Cases Surge, Northern Italy On Lockdown: Virus Updates.

• Coronavirus Deaths Outside China Spike As WHO Team Visits Wuhan: Live Updates.

• "This Ship Is Out Of Control" - NYT Exposes Japan's "Disastrous" Missteps In Botched "Diamond Princess" Quarantine.

• Hundreds Of Animals Drop Dead In China After Being Poisoned By Virus Disinfectant.

• Are US Intel 'Officials' Meddling In US Election With "Report" Russia Is Aiding Sanders?

• Half Of Undelivered 737 MAX Jets Inspected Have 'Debris' Found In Fuel Tanks.

• Covid-19 Triggers Global Luxury Bust.

• "Biggest Humanitarian Horror Story Of The 21st Century": Up To A Million Refugees Trying To Flee Idlib.

• S.Korea Coronavirus Cases Go Exponential As New Infections Soar By 70%; 10 Towns In Northern Italy Put On Lockdown.

• "The Human Race Could Go Extinct": JPMorgan Fearmongers Climate Change Impact In Leaked Report.

• China's Debts Are Coming Due At The Worst Possible Time.

• 401(k) Millionaires Surge To Record Level Under Trump.

• Girl Who Sued To Stop Biological Males From Running Girls' Track Defeats Trans-Runner For Championship.

• Italy Reports 1st Covid-19 Death, Locks-Down 10 Towns Amid Contagion Fears: Virus Updates.

• Twitter Tool Could See 'Verified' Users Given Power To Label "Lies" & "Harmful" Tweets.

• When US Hospitals And Military Publicly Brace For A Pandemic, You Should Pay Attention.

• Woke Irrationality Is Undermining Civilization.

• "They're Traumatized": Governments Ignore Plight Of Foreign Students Trapped In Wuhan.

• Trump Slams Oscars For Giving Best Picture Award To A Foreign Movie.

• China Forced To Revise Number Of Virus Cases Sharply Higher After Hubei Caught Undercounting New Infections.

• Wells Fargo Pays $3 Billion To Settle Illicit Conduct Of "Staggering Scope & Duration".

• These Are The 50 Most Popular Hedge Fund Longs And Shorts.

• Schizophrenic Stocks End Near Record Highs As Virus Fears Send Yields To All-Time Lows.

Business Insider:  

• Bernie Sanders suggests Russia might be behind the 'ugly' online attacks from 'Bernie Bros'.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking Coronavirus: Map, data and timeline.