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US STOCKS-China virus concerns, mixed earnings dampen Wall St mood

Published 23/01/2020, 15:14
© Reuters.  US STOCKS-China virus concerns, mixed earnings dampen Wall St mood
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* Dow components Travelers, P&G down after results

* China virus scare hits travel, casino stocks

* Airlines mostly weaker after Southwest earnings

* Futures: Dow down 0.21%, S&P off 0.11%, Nasdaq up 0.02%

(Adds comment, updates prices)

By Sruthi Shankar

Jan 23 (Reuters) - Wall Street was set to open lower on

Thursday on rising worries over the coronavirus outbreak in

China that prompted a lockdown of two cities in the country,

while a mixed bag of results added to the dour sentiment.

The benchmark S&P 500 closed slightly higher on Wednesday

but well below its record high after attempting to bounce back

from sharp losses earlier in the week on concerns about the

virus outbreak hitting the global economy.

China put on lockdown on Thursday two cities at the

epicentre of the coronavirus outbreak that has killed 17 people

and infected nearly 600 amid fears the transmission rate will

accelerate as hundreds of millions of Chinese travel for the

Lunar New Year holidays. "There is some concern that this will turn from an epidemic

to a pandemic," said Robert Pavlik, chief investment strategist

at SlateStone Wealth LLC in New York.

However, Pavlik added it was a reason for investors to take

some profits in an "overbought" market.

Casino and hotel operators including Wynn Resorts Ltd

WYNN.O , Melco Resorts & Entertainment Ltd MLCO.O and Las

Vegas Sands Corp LVS.N , which draw a large portion of their

revenue from China, were down between and 4% and 5% in premarket

trading.

Airlines stocks were mostly weaker, with Southwest Airlines

Co LUV.N slipping 0.8% after reporting a 21% fall in

fourth-quarter profit due to Boeing 737 MAX costs. American

Airlines Group Inc AAL.O rose 1%, while JetBlue Airways Corp

JBLU.O fell 0.5% despite a better-than-expected profit.

Consumer products firm Procter & Gamble Co PG.N and

insurer Travelers Cos Inc TRV.N , both members of the Dow Jones

Industrial Average .DJI , fell about 2% after reporting

results. At 8:51 a.m. ET, Dow e-minis 1YMcv1 were down 62 points,

or 0.21%. S&P 500 e-minis EScv1 were down 3.5 points, or 0.11%

and Nasdaq 100 e-minis NQcv1 were up 2.25 points, or 0.02%.

Of the 58 S&P 500 companies that have reported so far, 67.2%

have topped Wall Street's profit estimates, according to

Refinitiv IBES data. On an average, 65% of the companies beat

profit estimates.

Chipmaker Texas Instruments Inc TXN.O fell 1.3% despite

forecasting first-quarter revenue above market expectations, but

bullish brokerage actions on Micron Technology Inc MU.O and

Western Digital Corp WDC.O were set to boost the sector.

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