Morning Express

E-mini S&P (March)

Yesterday’s close: Settled at 3326, up 6.25

Fundamentals: U.S equity benchmarks created a floor at major three-star support on the opening bell yesterday and pared modest losses as the session unfolded. The NQ settled at a fresh record high and extended gains overnight after Intel crushed earnings estimates. Intel is up more than 5% premarket. Earnings have overall been good and there are supportive stories within. Although Comcast lost 3.77% after reporting ahead of the bell yesterday weighing on Fox and Disney, it was Netflix that gained 7.24% following its report Wednesday. Risk-sentiment around the globe is fairly stable to actually strong; European benchmarks are up more than 1% after the U.K posted strong Flash PMI reads and German Manufacturing was less-worse than feared. The Shanghai Composite though did shed 2.75% yesterday as the Coronavirus spread ahead of the start of the Lunar New Year holiday. The virus has now been reported in 32 of 34 Chinese provinces. There is now widespread lockdown and many of the New Year events have been cancelled, it is estimated that this can weigh on GDP by 1 to 1.2%.

American Express beat earnings this morning and we look to U.S Flash PMIs at 8:45 am CT.