Stocks expected to stay hostage to Coronavirus in this week
The stocks have been expected to stay hostage to the developments which involve coronavirus in the weeks ahead and even though, the market has been continuing to hit the new highs.
The economists have reduced the growth outlook of China for this quarter with a lot of them seeing less or no growth and then further bouncing back in the higher single digits in the next quarter. The economy of United States hasn’t been expected to be taking a big hit but questions for the stock market are about how the earnings of the corporates are going to be impacted.
The experts feel that the markets think that the worst may be over. The change’s pace has been slowing and there is no one who knows really and there is a huge amount of skepticism which including in Washington that they may not believe what exactly is coming from China.
Keon has believed that the market is looking poised to be heading higher and it is being traded like the virus isn’t going to be making a huge dent on profits or economy. These markets have not been getting much of the drawback in comparison to SARS or the other episodes which have happened and there isn’t any doubt that the world is going to suffer a big hit in the first and second quarter.
There are many companies like Viacom and Walmart as well as Deere which are going to report their revenues on Thursday. The economy releases include the Empire State on Tuesday and the Philadelphia Fed manufacturing Surveys on Thursday and on Friday, the Markit PMI.
There’s a parade of the Fed Speakers too which includes the Vice Chairman, Richard Clarida, Robert Kaplan, who is the Dallas Fed president.