More stocks pain; Wells Fargo penalty; Powell era begins

1. Seeing red: Investors around the world are (still) hitting the sell button.Major indexes i...

Posted: Feb 5, 2018 2:20 PM
Updated: Feb 5, 2018 2:20 PM

1. Seeing red: Investors around the world are (still) hitting the sell button.

Major indexes in Europe and Asia gave up ground on Monday as inflation fears continued to batter stocks. Japan's Nikki dropped 2.6% to lead regional markets lower, while European indexes were down by 1% to 2%.

U.S. stock futures indicate there will be more selling in New York. The Dow Jones industrial average was off by more than 1% before the opening bell.

Investors are concerned about Friday's robust January jobs report, which showed a big increase in U.S. wages. That has stoked concerns about rising inflation, higher interest rates and lower corporate profits.

The Dow plummeted 666 points, or 2.5%, on Friday -- its darkest day since the Brexit turmoil in June 2016.

"We're at an inflection point, one that we haven't seen in quite some time, where good news for Main Street is not necessarily good news for Wall Street," said Peter Kenny, an independent market strategist and founder of Kenny's Commentary.

Meanwhile, higher yields are making bonds look like a more attractive investment, raising concerns that masses of investors could ditch stocks in favor of bonds.

The 10-year U.S. Treasury yield has rocketed from about 2.4% at the start of 2018 to a four-year high of 2.85%.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

2. Powell era begins at the Fed: Jerome Powell takes over from Janet Yellen as chair of the U.S. Federal Reserve on Monday.

When Yellen began her four-year term as the first woman to lead the Fed in 2014, the unemployment rate was 6.7%. Today it's 4.1%, the lowest in 17 years.

The Fed is expected to raise interest rates multiple times this year.

3. Stocks to watch -- Wells Fargo, Broadcom, Qualcomm: Shares in Wells Fargo were set to tumble 8% after the Federal Reserve handed down an unprecedented punishment late Friday for what it called "widespread consumer abuses," including its notorious creation of millions of fake customer accounts.

Wells Fargo won't be allowed to get any bigger than it was at the end of last year -- $2 trillion in assets -- until the central bank is satisfied that it has cleaned up its act.

Reuters reported that Broadcom plans to announce an improved $120 billion offer for Qualcomm that is designed to bring its rival to the negotiating table.

4. International market movers -- Samsung, Ryanair: Shares in Samsung posted a mild gain on news that its de facto leader was getting out of jail sooner than expected.

Lee Jae-yong, a 49-year-old billionaire, was found guilty of bribery and other corruption charges in August and sentenced to five years in prison.

But a higher court on Monday cut the sentence to two and a half years and suspended it for four years.

Shares in Ryanair dropped by about 3% after the airline reported quarterly results. Analyst Gerald Khoo at Liberum said that management "struck a cautious tone on the outlook for next year."

Download CNN MoneyStream for up-to-the-minute market data and news

5. Coming this week:

Monday -- Jerome Powell's swearing in at the Federal Reserve
Tuesday -- Earnings from BP, Disney, Snap, General Motors, Dunkin' Brands and Chipotle
Wednesday -- Earnings from 21st Century Fox, Hasbro and Tesla
Thursday -- Earnings from News Corp, Viacom, Twitter, Kellogg, Thomson Reuters, Tyson Foods, Expedia and Yum! Brands
Friday -- PyeongChang 2018 Winter Olympics begins; Apple's HomePod goes on sale

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 307519

Reported Deaths: 7096
CountyCasesDeaths
DeSoto20772248
Hinds19888408
Harrison17489302
Rankin13311275
Jackson13097243
Madison9895210
Lee9856169
Jones8290160
Forrest7523146
Lauderdale7187237
Lowndes6262144
Lamar610584
Lafayette6027117
Washington5280132
Bolivar4769129
Oktibbeha455297
Panola4442103
Pearl River4419139
Warren4280118
Marshall4273100
Pontotoc416472
Monroe4057132
Union403675
Neshoba3987176
Lincoln3869108
Hancock372085
Leflore3468124
Sunflower329389
Tate322681
Pike3180104
Scott310572
Yazoo304368
Alcorn297764
Itawamba296776
Copiah292965
Coahoma289677
Simpson287484
Tippah284668
Prentiss275659
Marion265779
Wayne261341
Leake261073
Grenada254982
Covington254580
Adams245882
Newton244859
George237847
Winston225981
Tishomingo222067
Jasper219748
Attala213273
Chickasaw204857
Holmes186471
Clay182454
Stone179131
Clarke176876
Tallahatchie175240
Calhoun163230
Yalobusha158836
Smith158534
Walthall130543
Greene129433
Lawrence126223
Noxubee125933
Montgomery125542
Perry125138
Carroll120826
Amite120041
Webster113432
Jefferson Davis105432
Tunica102525
Claiborne101330
Benton97225
Kemper95226
Humphreys94332
Franklin81823
Quitman78916
Choctaw72817
Jefferson64828
Wilkinson64727
Sharkey49617
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 518899

Reported Deaths: 10712
CountyCasesDeaths
Jefferson753641487
Mobile37763798
Madison33859494
Tuscaloosa25266443
Montgomery23962565
Shelby23106238
Baldwin20631300
Lee15524165
Calhoun14284311
Morgan14139268
Etowah13662345
Marshall11957219
Houston10380278
Elmore9993200
Limestone9811147
Cullman9470188
St. Clair9426234
Lauderdale9215227
DeKalb8746181
Talladega8058171
Walker7087275
Jackson6754110
Autauga6723103
Blount6483135
Colbert6203130
Coffee5399112
Dale4767110
Russell428838
Franklin419982
Chilton4083109
Covington4053114
Tallapoosa3893146
Escambia387674
Dallas3527149
Chambers3499122
Clarke346360
Marion3065100
Pike305875
Lawrence295395
Winston272372
Bibb256258
Marengo248661
Geneva245875
Pickens232959
Barbour224755
Hale218775
Butler212266
Fayette208960
Henry187844
Cherokee182044
Randolph176941
Monroe171440
Washington164038
Macon154548
Clay149354
Crenshaw149257
Cleburne146041
Lamar139234
Lowndes136453
Wilcox124327
Bullock121340
Conecuh109028
Perry107926
Sumter102932
Coosa99228
Greene90734
Choctaw58724
Out of AL00
Unassigned00
Tupelo
Clear
80° wxIcon
Hi: 86° Lo: 50°
Feels Like: 79°
Columbus
Clear
80° wxIcon
Hi: 84° Lo: 48°
Feels Like: 80°
Oxford
Clear
70° wxIcon
Hi: 83° Lo: 48°
Feels Like: 70°
Starkville
Partly Cloudy
70° wxIcon
Hi: 84° Lo: 47°
Feels Like: 70°
A cold front will move into our area during our Tuesday. This front will bring some chances for some rain and isolated thunderstorms for our Tuesday night. Some of the activity will linger in our area into our Wednesday.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather