Futures slide as oil price slump hammers energy stocks
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[April 20, 2020]
By Shreyashi Sanyal
(Reuters) - U.S. stock index futures fell
on Monday as a slump in oil prices pounded energy stocks, with investors
also bracing for another batch of dour first-quarter earnings reports
and economic data.
Exxon Mobil Corp <XOM.N> and Chevron Corp <CVX.N> shed between 3.6% and
4.3% in premarket trading as crude prices fell to levels last seen in
1999 on concerns of oversupply. [O/R]
Wall Street's main indexes have rallied this month, with the S&P 500
<.SPX> ending Friday with its biggest two-week percentage gain since
1974 on a raft of global stimulus and hopes the virus was nearing a peak
in the United States.
The benchmark index is up 30% from its March trough, but is still about
15% off its all-time high and analysts have warned of a deep economic
slump from the halt in business activity and millions of layoffs.
After U.S. banks kicked off the quarterly earnings season with painful
forecasts for 2020, investors will keep a close watch on reports from
Halliburton <HAL.N> on Monday as well as Delta Air Lines Inc <DAL.N>,
Southwest Airlines Co <LUV.N> and Netflix Inc <NFLX.O> later in the
week.
Surveys on April U.S. manufacturing are due on Thursday.
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The floor of the New York Stock Exchange (NYSE) stands empty as the
building prepares to close indefinitely due to the coronavirus
disease (COVID-19) outbreak in New York, U.S., March 20, 2020.
REUTERS/Lucas Jackson
At 06:22 a.m. EDT, Dow e-minis <1YMcv1> were down 372 points, or
1.52%, S&P 500 e-minis <EScv1> were down 41.5 points, or 1.43% and
Nasdaq 100 e-minis <NQcv1> were down 82.5 points, or 0.94%.
SPDR S&P 500 ETFs <SPY.P> were down 1.21%.
The S&P 500 index <.SPX> closed up 2.68% at 2,874.56 on Friday.
(Reporting by Shreyashi Sanyal in Bengaluru)
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