Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

WHO Warns on Covid, China on Bubbles; Retail Earnings Due - What's up in Markets

Published 03/02/2021, 06:47 AM
Updated 03/02/2021, 06:49 AM
© Reuters

© Reuters

By Geoffrey Smith 

Investing.com -- The number of Covid-19 cases worldwide rose for the first time in eight weeks last week as the World Health Organization said people are “letting down their guard.” China’s top regulator sends a chill through local markets by warning about bubbles, and Target and Ross Stores lead a bunch of retail earnings. Oil is taking a breather but off lows after data showing that Russian production fell last month. Here’s what you need to know in financial markets on Tuesday, March 2nd.

1. Covid-19 cases rose for first time in eight weeks last week

The pandemic is back. Or rather, its end looks like being delayed a little more, after the World Health Organization warned that the number of global cases rose for the first time in seven weeks last week.

Reported cases increased in four of the WHO’s six regions - the Americas, Europe, south-east Asia and the eastern Mediterranean – due to the relaxation of public health measures, the spread of new mutations and, according to WHO head Tedros Adhanom Ghebreyesus, “people letting down their guard.”

The numbers come at a time when U.S. states and cities are slowly lifting restrictions on economic and social life as the national vaccination campaign gathers speed, helped by the approval of Johnson & Johnson (NYSE:JNJ)’s Covid-19 vaccine at the weekend. 

Europe’s largest economy Germany is also reportedly planning to reopen non-essential shops in areas with low infection rates, loosening a lockdown that has been in place since December. Most restrictions will stay in place through March 28 however. Elsewhere, President Emmanuel Macron says France needs another 4-6 weeks before loosening its stance.

2. Retail earnings in focus

The retail sector is set to dominate the day’s earnings roster, with updates from Target (NYSE:TGT), Nordstrom (NYSE:JWN) and Ross Stores (NASDAQ:ROST) all due, along with Autozone.

Expectations are high for Target, which already reported a 17% rise in sales over the November and December period, thanks to its flexibility in adopting curbside collection and other pandemic-beating tactics.

Overnight, MercadoLibre (NASDAQ:MELI) finally published its quarterly results after repeated delays, reporting a surprise loss of over a dollar a share, rather than the 16c profit expected. The Latin American e-commerce site has one of the most stretched valuations of all after a stellar rally last year. Its stock was down 2.5% in premarket.

3. Stocks set to open with small correction lower

U.S. stocks are set to open slightly lower, giving up only some of the gains made in an explosive rally on Monday that was driven by the approval of J&J’s vaccine and the passage of the stimulus bill through the House of Representatives.

By 6:30 AM ET (1130 GMT), Dow Jones futures were down 64 points, or 0.2%, while S&P 500 futures were down 0.3% and Nasdaq futures were down 0.4%.

Stocks likely to be in focus later include Zoom Video (NASDAQ:ZM), which published surprisingly strong earnings after the close on Monday and forecast that it will transform from being a “killer app” into an Internet platform company. The shares had fallen nearly 40% in three months after peaking in October, but have recovered over 25% since then. They rose 8.6% in premarket trading.

4. China’s regulator warns of bubble

China’s top banking regulator warned that he was concerned by the risk of bubbles – in foreign markets. He also admitted that the Chinese housing sector was also looking stretched.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission and Party secretary, said that European and U.S. markets were heading in the opposite direction from their underlying economies and were due for a correction.

His comments triggered a sell-off in Chinese markets, as analysts interpreted them as a way of warning about domestic conditions without explicitly criticizing the authorities who had let them develop. Analysts at Saxo Bank point out that Chinese equities currently trade at a record premium to their world peers, having traded at a discount for much of the last 10 years.

5. Oil off lows after Russian, OPEC data; API stockpile data due

Crude oil prices dipped – along with those of other commodities – in what still appears to be a correction from over-extended levels after sharp gains in recent weeks.

By 6:35 AM ET, U.S. crude prices were down 0.1% while Brent futures were down 0.3%. Both contracts bounced after data showing that production from both OPEC and Russia fell in February, the former due to Saudi Arabia’s publicly-announced 1 million b/d output cut, and the latter due to an extended cold snap. The figures come ahead of Thursday’s monthly review of their output policy.

Elsewhere, The Wall Street Journal reported that the American Petroleum Institute is about to endorse the principle of pricing carbon dioxide emissions, dropping its long-held opposition.

The API will also release its weekly oil inventory data at 4:30 PM ET.

Latest comments

WHO needs to focus less on being celebrities and more on science and facts.  We don't need to hear about what MIGHT happen every day. There's a million things that "MIGHT" happen.
Bond yields are about to shred the markets
Unclear - bond interest rates go up or down?
With institutions causing so much stock market volatility in the last few days while crypto continues to move up at a positive rate it's almost more concerning to invest in the market right now.
sure china's on bubbles...just like American before the 2x index doubles...
10T created last year, where is the inflation?
Doesn't exist just ask the fed... Because they always tell us the truth. Lol
Texas just ended the mask mandate. Let's watch the fake case and death number inflation in the next weeks.
does anyone even listen to the WHO anymore?
can't stand the lies....click
china is in a bubble for more than 10 years now... sooner or later it will *****and then we will have a new financiado crisis way worse than 2008 subprime
China bubble was 5 years ago.
The comments are full of folks who havent been affected by Covid. Havent lost loved ones etc. You can always easily point them out because they are always the anti-maskers and folks who make ignorant comments. 500K DEAD and this is how you still behave? Selfishness and lack of human compassion shown at epic proportions. And you wonder why most of the country HATES you at this point? Smh
for what I now world Wide deaths are above 2 million
Believe in Jesus and he will make your hate go away. You talk about hate at the same time we should be unifying. You're a part of the problem not the solution. Jesus saves!
wrong, the system is false and creates the scenario, now they want us to heal. but they did nothing to stop it from getting here...the could have banned all Fangs. from the market...Twitter. fb And lying media schemes...now they want healing...AMEN...the systemnid broken. thank God for that!
Politicians are now just pandering to the fearful created by their media allies. With cases dropping, many high risk getting the vaccine, and many who’ve had it, the risk to the medical systems is no longer there.
yeah. medical bail out money and no health care! there genius
There won’t be a “back to normal”. The central banks and governments are addicted to this new power and will not let go of it.
The truth is cases are falling dramatically here in the U.S. probably be gone by April.
uh... no.
WHO = world hoax organization
Biden said "Trump who" I say "WHO who" lol
who's next!
Hey Investing.com why are you printing anything coming out of China? N O B O D Y believes it.
Actually it seems the ccp comments backfired on them. They have been bashing other countries saying their economies aren't as good as china's... Then when they explicitly say it their stock markets tumble hahaha.
"the shamdemic is back" screeches the media rube.
No way china can tell us we are in a bubble. They have been in a bubble for 2+ years.
The government isnt going to give you the “all clear” to go back to normal. We must nust go back to normal, then the government will act like thats what they were trying to get us to do the entire time.
100% right
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.