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US pre-open: Stocks to rise as coronavirus concerns ease

By Michele Maatouk

Date: Wednesday 12 Feb 2020

US pre-open: Stocks to rise as coronavirus concerns ease

(Sharecast News) - US futures pointed to a firmer open on Wall Street on Wednesday amid easing concerns about the spread of the coronavirus.
At 1215 GMT, Dow Jones Industrial average and S&P 500 futures were up 0.4%, while Nasdaq futures were 0.5% higher.

Oanda analyst Craig Erlam said: "Stock market investors are relentless, their ability to see the bull in any situation rivals only that of bitcoin enthusiasts, who can, it seems, make a bullish crypto argument for any and every newsworthy event. Yesterday saw the first deceleration in new COVID-19 cases in China, apparently a clear sign that the dawn is upon us.

"While I desperately hope that this is the case, one day of fewer reported cases is not exactly cause for celebration. The last weeks have been brutal and the number of cases and death toll have accelerated at a frightening rate. It's far too early to declare victory, but in the era of FOMO trading, investors are doing just that."

Investors will be eyeing a second day of semi-annual congressional testimony from Federal Reserve chairman Jerome Powell, who said on Tuesday that the Fed was "closely monitoring" the coronavirus and the impact it will have on Chinese and global economic growth.

London Capital Group analyst Jasper Lawler said: "The dollar was lower yesterday because it felt like Jay Powell left the door slightly ajar for a rate cut this year. It seems that one possible cause for the Fed to adjust its plans and lower interest rates again is the coronavirus."

On the corporate front, ride-hailing company Lyft was weaker in pre-market trade following the release of its fourth-quarter numbers after the close on Tuesday.

Elsewhere, CVS Health Corp gained as it reported better-than-expected fourth-quarter revenue and earnings.

Results from Molson Coors and Bed, Bath & Beyond were also in focus.

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