Wall Street set to recover after turbulent Monday
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[January 28, 2020] By
(Reuters) - U.S. stock indexes were on
track to recover on Tuesday after the S&P 500 suffered its worst day in
nearly four months in the previous session on fears that a coronavirus
outbreak could hit global economic growth.
Markets across the world stabilized as the head of the World Health
Organisation said he was confident in China's ability to contain the
virus outbreak that has killed 106 people, prompted businesses to close
operations and curbed travel.
U.S. economy and markets are not susceptible to a major slowdown due to
the virus outbreak because they are more domestically focused, but share
prices could falter in the near-term, Citi analyst Tobias Levkovich said
in a note.
Investors will keep a close watch on Apple Inc <AAPL.O> results, due
after markets close. Nikkei Asian Review reported that the company's
plans to ramp up iPhone production by 10% in the first half of this year
may hit a roadblock as the coronavirus spreads across major markets like
Its shares were up 1% in premarket trading after falling about 3% on
Monday amid a broad-based pullback in U.S. stocks.
At 7:24 a.m. ET, Dow e-minis <1YMcv1> were up 112 points, or 0.39%. S&P
500 e-minis <EScv1> rose 17.75 points, or 0.55% and Nasdaq 100 e-minis
<NQcv1> gained 68.5 points, or 0.76%.
U.S. industrial giant 3M Co <MMM.N> slid 2.3% after it forecast 2020
profit below expectations and narrowly missed quarterly revenue
estimates, as it faced sluggish demand in Asia.
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A trader works on the floor of the New York Stock Exchange shortly
after the opening bell in New York, U.S., January 24, 2020.
REUTERS/Lucas Jackson/File Photo
Earnings are now expected to show a decline of 0.5% for the fourth quarter,
according to Refinitiv data. Of the 87 companies that have reported though
Monday, 67.8% have topped expectations, below the 74% rate from the past four
Pfizer Inc <PFE.N> fell 1.6% after posting a lower-than-expected quarterly
profit on disappointing sales of breast cancer drug Ibrance.
The Fed officials will gather for the first policy meeting of the year on
Tuesday, and markets do not expect the central bank to change its benchmark
overnight lending rate at the end of the meeting on Wednesday.
Data on durable goods orders for December and January consumer confidence are
due later in the day.
(Reporting by Sruthi Shankar in Bengaluru)
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