Market Will Continue Watching Health Scare
Along with the numbers, investors would do well to keep an eye out for any news on the Wuhan coronavirus.
Wall Street looked to be shaking off concerns in early trading, despite weakness in sectors like airlines and gaming. But the report of the first confirmed case of the disease in the U.S. sent shares into the red right away, resulting in a down day for the major indexes.
A man who traveled back from Wuhan, a city of 11 million people, to Washington state was confirmed to have the infection Monday afternoon after being hospitalized last week.
The disease is believed to be spread from person to person and could hurt both U.S. and Chinese economies.
J&J Weighs in With Results
Dow component Johnson & Johnson (JNJ) will report earnings ahead of trading tomorrow.
On average, analysts are predicting quarterly earnings of $1.87 per share on revenue of about $20.8 billion, according to forecasts.
But with all the litigation the pharma company is facing even a robust quarter is unlikely to produce a sustainable rally in J&J (JNJ) stock, which has substantially trailed the broader market this year.
Barclays (LON:BARC) upgraded J&J stock last month to overweight from equal weight with an increased price target of $173 per share.
The analyst noted that fundamentals are positive and that the consensus outlook was achievable.
Also outside of the earnings and economic calendars, there will be another day of headlines from the World Economic Forum in Davos. Trade is likely in focus again, although neither President Donald Trump’s speech nor his meeting with European Commission President Ursula von der Leyen generated much market movement.
Trader Georgi Bozhidarov