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US STOCKS-Wall Street set for choppy session; stimulus measures in focus

Published 02/03/2020, 15:11
Updated 02/03/2020, 15:18
© Reuters.  US STOCKS-Wall Street set for choppy session; stimulus measures in focus
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* Futures up: Dow 0.83%, S&P 0.69%, Nasdaq 0.92%

* Banks pressured by drop in treasury yields

* Forty Seven jumps on Gilead's $4.9 bln offer

(Adds comment, updates prices)

By Ambar Warrick and Sanjana Shivdas

March 2 (Reuters) - U.S. stock index futures oscillated

between gains and losses on Monday, as investors continued to

fret about the economic impact of the coronavirus outbreak amid

assurances of stimulus measures from major central banks.

Wall Street recorded its biggest weekly decline since the

2008 financial crisis on Friday, sinking into correction

territory amid rampant fears of a recession resulting from the

epidemic.

At 9:06 a.m. ET, Dow e-minis 1YMcv1 were up 210 points, or

0.83%. S&P 500 e-minis EScv1 were up 20.5 points, or 0.69% and

Nasdaq 100 e-minis NQcv1 were up 77.5 points, or 0.92%.

Futures had swung more than 1.5% in either direction

earlier, while Wall Street's fear gauge .VIX jumped as much as

9% to 43.77 points.

"Markets (are) trying to get a sense of where we are in the

correction relative to the coronavirus," said Robert Pavlik,

chief investment strategist and senior portfolio manager at

SlateStone Wealth LLC in New York.

"If we can hold around flat-line to up (today), that's a

huge win."

Latest data from China showed factory activity in February

contracted at its sharpest pace on record due to virus-related

disruptions. The figures, coupled with last week's losses, prompted

reassurances from the U.S. Federal Reserve and the Bank of Japan

to intervene with monetary stimulus, if needed, sparking hopes

of a coordinated effort by central banks to maintain stability.

Investors now expect the Fed to deliver a 50 basis points

rate cut 0#FF: when it meets on March 17-18. USD/

Financial markets are also awaiting final readings of the

U.S. Markit and ISM manufacturing indexes to gauge the health of

the domestic economy, with flash readings last month showing a

decline in business activity.

Cruise operator Carnival Corp CCL.N fell 6.1% in premarket

trading as the travel and leisure sector continued to reel under

disruptions caused by the virus outbreak.

Peers Royal Caribbean Cruises Ltd RCL.N and Norwegian

Cruise Line Holdings Ltd NCLH.N dropped about 2.5% and 4.7%,

respectively.

Major banks fell as increased bets on a rate cut prompted a

drop in bond yields. JPMorgan Chase & Co JPM.N , Citigroup

C.N and Wells Fargo & Co WFC.N fell between 1% to 1.5%.

In a bright spot, China's JD.com Inc JD.O rose 5.9% after

it forecast at least a 10% rise in revenue for the first

quarter, after posting better-than-expected quarterly results.

Cancer drug developer Forty Seven Inc FTSV.O jumped 61.9%

after larger peer Gilead Sciences GILD.O made a $4.9 billion

offer for the firm. Gilead rose 1.1%.

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