Wall Street set to recover after turbulent Monday

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Wall Street set to recover after turbulent Monday

(Reuters) – U.S. stock indexes were on track to recover on Tuesday after the S&P 500 suffered its worst day in nearly four months in the previous session on fears that a coronavirus outbreak could hit global economic growth.

Markets across the world stabilized as the head of the World Health Organisation (WHO) said he was confident in China’s ability to contain the virus outbreak, which has killed 106 people, prompted businesses to close operations and curbed travel.

“Some of the comments coming out of the WHO and other medical advisers are helping markets catch a breath after yesterday’s decline which was somewhat overdone,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Investors will keep a close watch on Apple Inc (AAPL.O) results, due after markets close amid concerns of a disruption in iPhone production as the coronavirus spreads across major markets like China.

Its shares were up 1.2% in premarket trading after falling about 3% on Monday amid a broad-based pullback in U.S. stocks.

At 8:49 a.m. ET, Dow e-minis 1YMcv1 rose 130 points, or 0.46%. S&P 500 e-minis EScv1 gained 19.75 points, or 0.61% and Nasdaq 100 e-minis NQcv1 were up 75 points, or 0.84%.

U.S. industrial giant 3M Co (MMM.N) slid 1.8% after it forecast 2020 profit below expectations as it faced sluggish demand in Asia.

Earnings are now expected to show a decline of 0.5% for the fourth quarter, according to Refinitiv data. Of the 87 companies that have reported though Monday, 67.8% have topped expectations, below the 74% rate from the past four quarters.

Pfizer Inc (PFE.N) fell 2% after posting a lower-than-expected quarterly profit on disappointing sales of breast cancer drug.

The Fed officials will gather for the first policy meeting of the year on Tuesday, and markets do not expect the central bank to change its benchmark overnight lending rate at the end of the meeting on Wednesday.

Shares in Harley-Davidson Inc (HOG.N) tumbled 5.9% after the company reported a larger-than-expected decline in its motorcycles revenue.

Shares in Xerox Holdings Corp (XRX.N), known for its photocopiers and printers, jumped 4.6% after it reported 2020 profit above Wall Street expectations.

Source: https://www.reuters.com/article/us-usa-stocks/wall-street-set-to-recover-after-turbulent-monday-idUSKBN1ZR1JB