A Peek Into The Markets: US Stock Futures Tumble Over 200 Points As New Coronavirus Cases Surge

Pre-open movers

U.S. stock futures traded lower in early pre-market trade after China announced over 15,000 new coronavirus cases with 254 additional deaths. The Consumer Price Index for January and data on initial jobless claims for the latest week will be released at 8:30 a.m. ET. Dallas Fed President Robert Kaplan is set to speak at 12:45 p.m. ET, while Federal Reserve Bank of New York President John Williams will speak at 5:30 p.m. ET.

Futures for the Dow Jones Industrial Average dipped 216 points to 29,307 while the Standard & Poor’s 500 index futures traded fell 24 points to 3,356.50. Futures for the Nasdaq 100 index fell 84.75 points to 9,541.00.

Oil prices traded lower as Brent crude futures fell 1.2% to trade at $55.10 per barrel, while US WTI crude futures fell 0.9% to trade at $50.73 a barrel. The Energy Information Administration’s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index falling 1.1%, STOXX Europe 600 Index declining 0.9% and German DAX 30 index dropping 1%. The UK's FTSE index was trading lower by 1.5%, while French CAC 40 Index fell 0.9%.

In Asian markets, Japan’s Nikkei Stock Average fell 0.14%, Hong Kong’s Hang Seng Index fell 0.34%, China’s Shanghai Composite Index slipped 0.71% and India’s BSE Sensex fell 0.26%.

Broker Recommendation

Analysts at Goldman Sachs upgraded Caterpillar Inc. CAT from Neutral to Buy.

Caterpillar shares rose 0.2% to $139.86 in pre-market trading.

Breaking News

• MGM Resorts International MGM reported weaker-than-expected results for its fourth quarter and announced that CEO Jim Murren will step down. The company also withdrew its 2020 guidance and announced a $3 billion buyback program.
• Tempur Sealy International Inc. TPX reported better-than-expected results for its fourth quarter.
• Applied Materials, Inc. AMAT reported better-than-expected Q1 results and issued Q2 guidance above estimates.
• PepsiCo, Inc. PEP reported upbeat results for its fourth quarter.