US pre-open: Futures point to gains as investors shrug off Apple's warning

By Iain Gilbert

Date: Wednesday 19 Feb 2020

US pre-open: Futures point to gains as investors shrug off Apple's warning

(Sharecast News) - US futures had stocks opening higher on Wednesday as market participants remained largely focused on the potential economic fallout of the Wuhan coronavirus outbreak.
As of 1230 GMT, Dow Jones futures were up 0.28%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.27% and 0.38% firmer, respectively.

The Dow closed 165.89 points weaker as stocks on Wall Street finished mixed on Tuesday, as the ongoing coronavirus outbreak took its toll on Apple and other stocks exposed to China's manufacturing sector.

China's National Health Commission revealed a further 1,749 cases of the coronavirus across the country overnight, with another 136 deaths taking the total death total above 2,000.

Oanda's Craig Erlam said: "Investors still appear encouraged by the apparent deceleration in the number of new coronavirus cases, despite the death toll in China having surpassed 2,000. The problem is that they may be able to see the light at the end of the tunnel but it's still not clear how long the tunnel is or what the world outside will look like.

"I guess the damage is less important than the knowledge that the central banks stand ready to throw money at the problem. In such an environment, it's no wonder everything is a dip-buying opportunity."

On the macro front, the Labor Department will release its January producer price index alongside housing starts and building permits figures for January at 1330 GMT.

The Federal Reserve will publish minutes from its meeting back in December later in the session.

Atlanta Fed President Raphael Bostic, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Richmond Fed President Tom Barkin and Cleveland Fed President Loretta Mester will all make comments throughout the course of the day.

In the corporate space, Garmin, Synopsys, Host Hotels and Zillow were all scheduled to report earnings on Wednesday.


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