20Feb2020 Pre-Market Commentary: Wall Street Futures Dip As Coronavirus Cases Outside China Rise, DOW Down 76 Points, US Dollar Roars – Up 99.83, WTI Higher At 53.86, Initial Jobless Claims Rise 4 K

Here is the current market situation from CNN Money

European markets are mixed to lower. Shares in France are off as the CAC 40 drops 0.20%. The DAX is down 0.13% while the FTSE 100 in London is unchanged.

Domino’s U.S. same-store sales, profit beat estimates, shares jump 20%

Domino’s Pizza Inc on Thursday reported quarterly U.S. same-store sales and profit above analysts’ estimates, as its focus on faster delivery and new promotions to lure diners paid off, sending shares up nearly 20%.

HSBC targets the globally mobile with $1.4 trillion wealth business

HSBC plans to invest heavily in its newly combined retail and private banking business as it targets internationally minded customers in markets such as China, the United States and Singapore, the unit’s Chief Executive Charlie Nunn told Reuters.

Thyssenkrupp nears full sale of $17 billion elevator division – sources

Thyssenkrupp is nearing a full sale of its elevator division, three people familiar with the matter said, adding this would secure the highest valuation of about 16 billion euros ($17.3 billion) to help it pay down debt.

Futures dip as coronavirus cases outside China rise

U.S. stock index futures fell on Thursday, a day after the S&P 500 and Nasdaq closed at record levels, as the number of coronavirus cases outside China increased.

Morgan Stanley to buy E*Trade Financial in $13 billion deal

Morgan Stanley said on Thursday it would buy discount brokerage E*Trade Financial Corp in an all-stock deal worth about $13 billion, the biggest deal by a Wall Street bank since the financial crisis.

Thomson Reuters close to naming ex-Nielsen president Hasker as CEO: sources

Thomson Reuters Corp is close to naming former Nielsen Holdings Plc president Steve Hasker as its next chief executive, succeeding Jim Smith, according to people familiar with the matter.

Exclusive: Westinghouse set to sign pact with Indian firm for nuclear reactors during Trump visit

U.S. energy firm Westinghouse is expected to sign a new agreement with state-run Nuclear Power Corporation of India for the supply of six nuclear reactors during U.S. President Donald Trump’s visit next week, officials said, aiming to kickstart a long-running project.

EU privacy body warns of privacy risks in Google, Fitbit deal

Alphabet Inc-owned Google’s $2.1 billion bid for fitness trackers company Fitbit could pose privacy risks, the European Data Protection Board (EDPB) warned on Thursday, adding its voice to other critics of the deal.

Swiss bank Julius Baer slammed for money laundering failures

Swiss bank Julius Baer has been reprimanded by the country’s watchdog for ignoring money laundering risks in handling millions of francs of suspect payments linked to corruption in Venezuela and world soccer body FIFA.

“If This Doesn’t Knock Him Out Of The Race, Nothing Will” – Bloomberg Battered By Left & Right In Debate Disaster

“If This Doesn’t Knock Him Out Of The Race, Nothing Will” – Bloomberg Battered By Left & Right In Debate Disaster

Last night’s Democratic presidential candidates debate at the Paris Las Vegas Hotel lived up to its hype. The New York Post summed it up best…

The billionaire’s self-bankrolled presidential bid was torn to shreds in the opening minutes of Wednesday’s Democratic debate as his opponents skewered him for his checkered past on sexual harassment and his record on stop-and-frisk.

Morgan Stanley Can’t Believe What’s Going On: “All Aboard The Crazy Train”

Morgan Stanley Can’t Believe What’s Going On: “All Aboard The Crazy Train”

Submitted by Chris Metli, executive director in Quantitative Derivative Strategies at Morgan Stanley

All Aboard!Â

Fed ‘liquidity’ has powered the S&P 500 to a 16% gain since they announced Permanent Open Market Operations in October 2019, while the NDX is up a cool 26% (total returns). The rally makes sense in the context of a Fed that is continuing to print money until at least April, and beyond that likely continues to try to fight the structural forces of deflation with the only tool they have. But at the same time consensus is that the rally in Tech/Growth continues, and investors should be increasingly concerned with some of extremes being priced into markets.

The below is a non-exhaustive list of data points that highlight just how crazy some things have become. In this environment adding beta or Growth/Tech exposure carries too much risk in QDS’s view. Instead investors should consider rotating out of their most stretched single-stock positions and into call options (i.e. stock replace, keeping upside but limiting downside), or hedging the most vulnerable areas of the market ” Crowded stocks (MSXXCRWD) or Growth vs Value (MSZZGRVL). See last week’s Factor Volatility is Here to Stay for details.

Turning to the data ” first consider that breadth over the past six months has been the narrowest since at least 2005, with only 38% of S&P 500 constituents outperforming the index.

Epstein Mentor Les Wexner Leaves L Brands, Sells 55% Stake In Victoria’s Secret For $525 Million

Epstein Mentor Les Wexner Leaves L Brands, Sells 55% Stake In Victoria’s Secret For $525 Million

Les Wexner is stepping down as chairman and CEO of L Brands as the company prepares to sell a 55% stake in its flagship brand, Victoria’s Secret, to private equity firm Sycamore Partners for $525 million, according to a pair of reports from Bloomberg and WSJ.

Dollar Roars, Futures Slide On Surge In New Virus Corona Cases In Japan, South Korea

Dollar Roars, Futures Slide On Surge In New Virus Corona Cases In Japan, South Korea

S&P futures slipped, Asian stocks eased and European markets were a sea of red even as the relentless dollar juggernaut continued on Thursday, as virus cases rose in South Korea and Japan even as China added more stimulus via a rate cut to support its economy.

In India’s bad loan cloud, global firms see a silver lining

In India’s bad loan cloud, global firms see a silver liningThe NBFC crisis is creating new prospects for Deutsche Bank. Goldman Sach has been another beneficiary.

Hurry! Rs 10K/month pension plan ends soon

Hurry! Rs 10K/month pension plan ends soonPradhan Mantri Vaya Vandana Yojana pension scheme, meant for senior citizens, is available only till March 31.

The question markets could now start asking

The question markets could now start askingWhat matters more when deciding rates ” growth-inflation dynamics or govt finances? As of now, it’s a blur.

Economic Report: U.S. jobless claims climb slightly to 210,000, but still clinging near postrecession low

The number of Americans who applied for unemployment benefits rose slightly in mid-February, but the rate of layoffs in the U.S. economy is still extremely and shows no sign of rising. Initial jobless claims edged up by 4,000 to 210,000.

Need to Know: Goldman Sachs warns of imminent risk for stocks due to complacency on coronavirus

JPMorgan and Goldman Sachs are both worried about investor behavior right now. Our call of the day comes from the latter, who warns the coronavirus may be a bigger hit to U.S. earnings than investors think.

The Moneyist: She wants me to pay for everything. Should I bite the bullet financially and emotionally ” and ask my wife for a divorce?

‘She tries to curb my outside activities, and basically wants me to bend to her will on anything and everything.’