Tuesday Watch

Evening Headlines

Bloomberg: 

• China’s Virus-Hit Cities Remain World’s Biggest Ghost Towns.

• Coronavirus Death Toll Tops 1,000; Mortality Estimate at 1%.

• U.S. Tries to Stop Flow of Personal Data to China With Charges.

• Asian Stocks Open Firmer as Virus Fears Linger. Asian equities opened higher Tuesday after U.S. stocks hit a record high as investors looked past the potential economic impact of the spreading coronavirus. Shares in Sydney and Seoul were higher. Futures pointed to gains in Hong Kong. Japanese financial markets are shut for a holiday. U.S. equity futures were little changed after the S&P 500 Index climbed to a new high Monday, with most sectors advancing. The Chinese yuan traded offshore maintained gains, while the yen was little changed. The S&P/ASX 200 Index rose 0.7%. South Korea’s Kospi index added 0.7%. Contracts on Hong Kong’s Hang Seng Index rose 0.1% earlier. FTSE China A50 futures gained 0.5%. S&P 500 futures were little changed.  

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

• Crude Holds Below $50 as OPEC Dithers Over Virus Response.

• Trump Eyes Drug-Price Cuts After His Health-Care Record Is Attacked

• Morgan Stanley Marketing 6.3 Million-Share Stake in Uber 

• Sanders Tops U.S. Poll; Bloomberg Overtakes Warren in Third Spot.  

• What Happens When a Virus Runs Rampant on a Cruise Ship.

Wall Street Journal:

• Federal Judge Expected to Clear Way for T-Mobile and Sprint Merger.

• How a Reality-TV Producer Became Rainmaker to $300 Billion Saudi Fund.

• Democrats Want a Prophet, Not a President.

• Wuhan Evacuees Hunker Down for Weeks in Quarantine.

• Turkish Troop Losses Mount After Clash With Assad Forces.

• Why a Rising ‘Black Swan’ Index Could Be a Sign of Bullishness.

Fox News:

• WATCH LIVE: Trump takes shots at 'mumbling' Pelosi's SOTU showdown in New Hampshire rally.

• Barr announces sweeping new sanctions targeting left-wing sanctuary cities.

• Politically charged Oscars hit all-time low rating, plummeting by this number.

MarketWatch.com:  

• Slack stock spikes — then slides — on confusion over IBM deal.

• Coronavirus plunges China into massive work-at-home pilot program.

• Why ‘buy-the-dip’ is the stock market’s default setting — and what it would take for that to change.

• It isn’t 1999—the party’s not over for tech stocks yet, Goldman says.

CNBC:

• Coronavirus live updates: China death toll tops 1,000.

• Cramer’s lightning round: You’ve got to own Raytheon.

• Scientists worry coronavirus could evolve into something worse than "flu", says quarantined expert.

• The advances 5G will enable are about to change everything.

• Stocks making the biggest moves after hours: Slack, Chegg, Moderna and more.

• The coronavirus is a ‘black swan’ for oil and energy markets, says Ned Davis Research.

• Why the bond market looks so worried about the coronavirus outbreak.

Zero Hedge:

• This Is How China Is Rigging The Number Of Coronavirus Infections 

• Masked President Xi Warns 'Prepare For Long & Grim' Virus Battle As Trump Insists Outbreak Will End By April: Virus Updates.

• Body Count Bull$hit.

• Chinese Firms Ask For Billions In Loans Amid Virus Outbreak.

• Does The Coronavirus Threaten The Chinese Communist Party's Grip On Power?

• Morgan Stanley: Stocks Are Up Because The Worse Things Get, The More Likely We Will Get Fiscal Stimulus.

• Ratings For 'Wokest Oscars Ever' Tumble To All-Time Low As Exhausted Americans Tune Out.

• Nasdaq Soars To Another Record High As Crude Crashes & The Yield Curve Re-Inverts.

John Hopkins University:

• Coronavirus Global Cases. (map)

Night Trading 

• Asian equity indices are .25% to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 50.75 -2.75 basis points.

• China Sovereign CDS 36.0 -.75 basis point.

• Bloomberg Emerging Markets Currency Index  64.96 +.08%.

• FTSE 100 futures +.59%.

• S&P 500 futures +.28%.

• NASDAQ 100 futures +.44%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (DBD)/.49

• (D)/1.15

• (GT)/.53

• (HAS)/.92

• (HLT)/.96

• (JLL)/5.89

• (LPX)/.12

• (MLM)/2.23

• (SEE)/.75

• (UAA)/.10

After the Close:

• (AKAM)/1.13

• (LSCC)/.15

• (LYFT)/-.53

• (NCR)/.84

Economic Releases 
6:00 am EST

• The NFIB Small Business Optimism report for Jan. is estimated to rise to 103.5 versus 102.7 in Dec.

10:00 am EST

• The JOLTS Job Openings report for Dec. is estimated to rise to 6925 versus 6800 in Nov.

• MBA 4Q Mortgage Delinquencies/Foreclosures reports.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Powell testimony to Congress, Fed's Quarles speaking, Democratic NH Primary, UK GDP report, UK Industrial Production report, US weekly retail sales reports, Goldman Tech/Internet Conference, Stifel Transport/Logistics Conference, (V) investor day could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and commodity shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.