The number of cases of coronavirus in China is still rising and the latest fallout includes a warning on the potential financial impact from Carnival (CCL, CUK) and the cancellation of a major mobile industry event. However, stocks continue to shrug off worries about the outbreak as the major averages finished at new record highs.
ECONOMIC EVENTS: In the U.S., Fed Chair Jerome Powell reprised his Monetary Policy Report, this time before the Senate Banking Committee, after having testified before the House Financial Services Committee yesterday.
TOP NEWS: Shares of Lyft (LYFT) fell 10% after the ridesharing service operator reported Q4 results and issued its Q1 outlook.
CVS Health (CVS) reported better than expected earnings and revenue in the fourth quarter. Larry Merlo, the President and CEO of the pharmacy and healthcare company, said that "as a result of the significant progress we made in 2019, and meeting or exceeding our expectations for the year," the company has raised its outlook for 2020.
Shares of Bed Bath & Beyond (BBBY) plunged by more than 20% after the retailer reported that the company's comparable sales declined 5.4% for the first two months of the fiscal 2019 fourth quarter, namely December 2019 and January 2020.
Carnival (CCL), whose Diamond Princess cruise ship has been under a two-week quarantine in a Japanese port, announced that travel restrictions as a result of coronavirus are now resulting in the cancellation of voyages in parts of Asia beyond just China. "As a result of coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results which was not anticipated in the company's previous 2020 earnings guidance," noted Carnival, which added that if the company had to suspend all of its operations in Asia through the end of April, it would impact its fiscal 2020 financial performance by 55c-65c per share.
Meanwhile, Occidental Petroleum (OXY) shares were 3% higher after Carl Icahn said in an open letter to Occidental shareholders that he wants to know if the company made a deal to avoid a takeover.
Additionally, the Mobile World Congress was cancelled over concerns about the spread of the coronavirus. John Hoffman, the CEO of conference organizer GSMA, said in a statement to Bloomberg News: "With due regard to the safe and healthy environment in Barcelona and the host country today, the GSMA has cancelled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event." Companies that had pulled out of the conference include Cisco (CSCO), Intel (INTC), Nvidia (NVDA), Sony (SNE), and NTT Docomo (DCM).
MAJOR MOVERS: Among the noteworthy gainers were Las Vegas Sands (LVS) and Wynn Resorts (WYNN), which rose 3% and nearly 4%, respectively, after both were upgraded to Buy from Neutral at Bank of America. Also higher after reporting quarterly results were Acco Brands (ACCO) and Shopify (SHOP), which gained a respective 12.5% and 8%.
Among the notable losers Diebold (DBD), which slid 4% after reporting quarterly results and providing fiscal 2020 guidance. Also lower was Medtronic (MDT), which fell 2%% after the FDA said the company is recalling certain MiniMed 600 Series Insulin Pumps due to a missing or broken retainer ring which helps to lock the insulin cartridge into place in the pump's reservoir compartment.
INDEXES: The Dow rose 275.08, or 0.94%, to 29,551.42 , the Nasdaq gained 87.02, or 0.90%, to 9,725.96 , and the S&P 500 advanced 21.70, or 0.65%, to 3,379.45 .
Lyft
-5.53 (-10.24%)
CVS Health
-0.13 (-0.18%)
Bed Bath & Beyond
-3.055 (-20.59%)
Carnival
+1.14 (+2.66%)
Occidental Petroleum
+1.33 (+3.23%)
Cisco
+0.79 (+1.61%)
Intel
+0.02 (+0.03%)
Nvidia
+4.55 (+1.70%)
Symbol now SONY
+0.38 (+0.54%)
NTT DoCoMo
+ (+0.00%)
Las Vegas Sands
+2.3 (+3.34%)
Wynn Resorts
+4.81 (+3.64%)
Acco Brands
+1.135 (+12.40%)
Shopify
+36.2 (+7.34%)
Diebold
-0.3649 (-3.94%)
Medtronic
-2.53 (-2.13%)