U.S. stock-index futures on Wednesday pointed to a third consecutive day of gains, as Wall Street attempts to cure a selloff sparked in part by an Asian influenza that has killed hundreds and infected tens of thousands in China.
How are stock benchmarks faring?
Futures for the Dow Jones Industrial Average YMH20, +0.86% were up 258 points, or 0.9%, at 29,047, those for the S&P 500 index ESH20, +0.88% were rising 27.50 points, or 0.8%, at 3,327, and Nasdaq-100 futures NQH20, +1.14% advanced 101 points, or 1.1%, to 9,455.75.
On Tuesday, the Dow DJIA, +1.44% rose 407.82 points, or 1.4%, to finish at 28,807.6, the S&P 500 index SPX, +1.50% gained 48.67 points, or 1.5%, to end at 3,297.59. The Nasdaq Composite Index COMP, +2.10% advanced 194.57 points, or 2.1%, to close at a record 9,467.97, surpassing its previous closing high on Jan. 23.
All three major benchmarks took back the ground lost during Friday’s coronavirus-related rout.
What’s driving the market?
The market’s bullish complexion on Wednesday was being partly attributed to unverified reports of treatments that could be effective against the Wuhan virus that has stricken China and spread to other parts of the globe. Sky News reported on Wednesday that U.K. researchers had made progress in lab tests toward a vaccine for the virus that has been likened to SARS, or severe acute respiratory syndrome. Separately, a research team at Zhejiang University claimed to identify a cocktail of drugs, namely Abidol and Darunavir, that has thus far proven effective at stanching the virus in infected patients. A separate report from China’s media pointed to a combination of Lopinavir and Ritonavir as an effective treatment.
The World Health Organization has said that there are “no known effective therapeutics” against the virus, in response to the media reports.
The number of confirmed cases of the coronavirus rose above 24,000, as of Tuesday, and Hong Kong reported its first death from the virus, which has claimed 492 lives, the Wall Street Journal reported.
An apparent easing of anxieties around the viral outbreak, which is still feared to deliver a hit to growth in China, has helped Wall Street investors focus on corporate quarterly results, which have thus far been upbeat. A batch of earnings are still rolling out this week.
With a little less than half of the S&P 500 companies reporting, the blended earnings growth rate shows a 0.14% rise, compared against a 2.0% decline expected at the start of earnings season, according to FactSet.
Moves in the market also come after President Donald Trump on Tuesday delivered his third State of the Union address, which painted an optimistic picture of the country’s future and touted the strength of the economy under his tenure.
A report on private-sector employment from Automatic Data Processing Inc. blew past economists’ consensus estimates, showing that 291,000 jobs were added in January, nearly double the consensus estimate of 154,000.
ADP’s data were “robust and they confirmed Trump’s narrative of ‘blazing economy,’” said Naeem Aslam, chief market analyst for Avatrade. “The data soared the bearish bets on gold. It confirmed that the economy is not suffering. In order words, the risk-on trade is going to stay a little longer in this market. Having said that traders are going to continue to scrutinize the upcoming data until the 9more closely followed reading of jobs on Friday from the Labor Department.)”
Separately, a report on international trade showed that the U.S. trade deficit fell in 2019 for the first time in six years, reflecting reduced imports from China due to tariffs, with a 1.7% decline to $616.8 billion in December.
Which stocks are in focus?
- Shares Merck & Co. Inc. MRK, +1.17% said it was spinning off its Women’s Health, Trusted Legacy Brands and Biosimilar Products businesses as it reported results.
- Capri Holdings Ltd. shares CPRI, +3.15% rose in Wednesday premarket trading after the luxury fashion house reported fiscal third-quarter earnings and revenue that beat expectations.
- Humana Inc. HUM, +2.90% reported fourth-quarter profit and revenue that beat expectations, sending its shares higher.
- Streaming-music service Spotify Technology SPOT, +5.33% said it swung to a €209 million ($230 million) loss, or €1.14 a share, while revenue rose.
- EBay Inc.’s shares EBAY, +8.78% rose before the bell as the Journal reported that New York Stock Exchange-parent Intercontinental Exchange Inc. ICE, -7.45% approached the e-commerce company multiple times regarding a takeover.
- Macy’s Inc. said it plans to close 125 department stores over the next three years.
- Gilead Sciences Inc. GILD, +1.57% cut its outlook as the drugmaker reported results late Tuesday.
- Coty Inc. shares COTY, +0.76% jump after earnings beat and upbeat guidance.
- Tesla Inc. shares TSLA, +13.73% were sliding lower before the bell after an analyst downgrade.
How are other markets trading?
Government bond yields continued to climb, with the 10-year U.S. Treasury note TMUBMUSD10Y, +3.07% rising about 5 basis points to 1.65%, a day after its biggest one-day gain since Dec. 12, according to Dow Jones Market Data.
Oil prices jumped, a day after adding to losses that put the contract at its lowest settlement in more than a year. The price of a barrel of West Texas Intermediate crude for March delivery CLH20, +2.82% rose 2.8% to $50.99. In precious metals, the price of an ounce of gold for April delivery GCJ20, +0.17% picked up $1.00, or 0.1% $1,556.50, following its lowest close since Jan. 22.
The U.S. dollar DXY, +0.22% rose 0.1% at 98.07 relative to a basket of six major peers.
In Europe, the Stoxx Europe 600 SXXP, +1.32% was headed 1.2% higher.
In Asia overnight Wednesday, stocks rose significantly. The China CSI 300 000300, +1.13% added 1.1%, Japan’s Nikkei 225 NIK, +1.02% rose 1% and Hong Kong’s Hang Seng HSI, +0.42% advanced 0.4%.
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https://news.google.com/__i/rss/rd/articles/CBMiigFodHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vc3RvcnkvZG93LXBvaW50cy10by0zcmQtc3RyYWlnaHQtZGF5LW9mLWdhaW5zLWFzLXN0b2NrLW1hcmtldC1haW1zLXRvLXNoYWtlLW9mZi1jb3JvbmF2aXJ1cy1zZWxsb2ZmLTIwMjAtMDItMDXSAU9odHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vYW1wL3N0b3J5L2d1aWQvNDcwNzg4NzAtNDgwNy0xMUVBLThFQUQtMDg2Nzg0OTNBMzYw?oc=5
2020-02-05 13:40:00Z
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