Stock-index futures pointed to a higher start for U.S. equities Tuesday, a day after growing worries about the impact of China’s coronavirus outbreak on global economic growth sparked the biggest one-day selloff since early October.
Investors were also set to wade through a tide of quarterly results from a number of high-profile companies as earnings reporting season picks up steam.
What are major indexes doing?
Futures on the Dow Jones Industrial Average YMH20, +0.49% rose 108 points, or 0.4%, to 28,589 while S&P 500 futures ESH20, +0.65% were up 17.15 points, or 0.5%, at 3,256.75. Nasdaq-100 futures rose 69 points, or 0.8%, to 9,023.50.
The Dow DJIA, -1.57% dropped 453.93 points Tuesday, a decline of 1.6%, to end at 28,535.80, while the S&P 500 SPX, -1.57% shed 51.84 points, or 1.6%, to end at 3,243.63. It was the biggest decline for both indexes since Oct. 2. The Nasdaq Composite ended at 9,139.31, down 175.60 points or 1.9% — its biggest-one day fall since Aug. 23.
What’s driving the market?
“The virus-related uncertainty that plagued global markets in recent days started to abate on Tuesday,” with stock-index futures pointing to a slightly higher start and the Japanese yen, a traditional have, unable to extend recent gains, said Marios Hadjikyriacos, investment analyst at XM, in a note.
“Admittedly though, this recovery in sentiment seems fragile at best, considering that American stocks fell by nearly 1.6% yesterday and that the yen is still substantially higher this week,” Hadjikyriacos said.
Chinese authorities on Tuesday said deaths from the viral disease rose by 25 to at least 106, while the number of confirmed cases in China rose to 4,515.
China’s already weakening economy is set to take another hit with businesses across the country remaining shut for an extended public holiday and tourism grinding to a halt, as authorities struggle to contain the pneumonia-like coronavirus that has spread across the nation, the South China Morning Post reported.
Which companies are in focus?
Shares of Dow component 3M Co. MMM, -1.41% were down 1.5% in premarket trade, after the consumer and industrial products company reported fourth-quarter profit that fell short of Wall Street expectations, while revenue matched. 3M also said it was cutting 1,500 jobs as part of a restructuring.
What’s on the economic calendar?
Data on U.S. December durable-goods orders are due at 8:30 a.m. Eastern. Economists surveyed by MarketWatch, on average, forecast a 0.3% drop, while core capital-goods orders were expected to come in flat.
The Case-Shiller read on U.S. national home prices is due at 9 a.m. Eastern, while a January consumer confidence index is due at 10 a.m. Eastern.