Futures lower as China virus outbreak, growth fears sour
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[January 21, 2020] By
Sruthi Shankar
(Reuters) - U.S. stock index futures
followed Asian and European markets lower on Tuesday as worries about
the fallout from a deadly virus outbreak in China and a gloomy growth
outlook from the IMF looked set to stall a record rally on Wall Street.
Officials confirmed the new coronavirus outbreak took six lives and that
it could spread between humans, stoking fears of a global pandemic and
reviving memories of Severe Acute Respiratory Syndrome (SARS) - another
coronavirus that killed nearly 800 people in 2002-03.
Travel stocks including Delta Air Lines Inc <DAL.N>, United Airlines
Holdings Inc <UAL.O> and American Airlines Group Inc <AAL.O> fell over
2% in premarket trading.
![](http://archives.lincolndailynews.com/2020/Jan/21/images/ads/current/charrons_bch041713.png)
Hotel and casino operators Las Vegas Sands Corp <LVS.N> and Wynn Resorts
Ltd <WYNN.O>, both of which have large operations in China, dropped
about 5%.
A top International Monetary Fund official said on Monday that a
slowdown in global growth appears to have bottomed out but there is no
rebound in sight. The IMF trimmed its global growth forecasts for 2020
and 2021.
The developments weighed on U.S. investors returning from a long holiday
weekend. Strong economic data, the signing of the Phase 1 U.S.-China
trade deal and an upbeat start to fourth-quarter earnings season had
sent Wall Street to new all-time highs on Friday, helping post their
strongest weekly gains since August.
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Traders work on the
floor at the New York Stock Exchange (NYSE) in New York, U.S.,
January 14, 2020. REUTERS/Brendan McDermid
![](http://archives.lincolndailynews.com/2020/Jan/21/images/ads/current/rohlfs_lda_072017.png)
However, U.S. Treasury Secretary Steven Mnuchin told the Wall Street Journal
that the Phase 2 trade deal with China would not necessarily be a "big bang"
that removes all existing tariffs.
At 7:34 a.m. ET, Dow e-minis <1YMcv1> were down 39 points, or 0.13%. S&P 500
e-minis <EScv1> were down 9 points, or 0.27% and Nasdaq 100 e-minis <NQcv1> were
down 32 points, or 0.35%.
Halliburton Co <HAL.N> rose 2% after the oilfield service provider beat
estimates for quarterly profit, helped by higher drilling activity in
international markets.
Bank of America's fund manager survey showed that U.S. technology and
high-growth stocks have been the "most crowded" trade for three months in a row
and forecast S&P 500 <.SPX> index to peak at 3,400 in the third quarter.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)
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