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US STOCKS-Futures lower as China virus outbreak, growth fears sour mood

Published 21/01/2020, 14:07
© Reuters.  US STOCKS-Futures lower as China virus outbreak, growth fears sour mood
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures down: Dow 0.13%, S&P 0.27%, Nasdaq 0.35%

By Sruthi Shankar

Jan 21 (Reuters) - U.S. stock index futures followed Asian

and European markets lower on Tuesday as worries about the

fallout from a deadly virus outbreak in China and a gloomy

growth outlook from the IMF looked set to stall a record rally

on Wall Street.

Officials confirmed the new coronavirus outbreak took six

lives and that it could spread between humans, stoking fears of

a global pandemic and reviving memories of Severe Acute

Respiratory Syndrome (SARS) - another coronavirus that killed

nearly 800 people in 2002-03. Travel stocks including Delta Air Lines Inc DAL.N , United

Airlines Holdings Inc UAL.O and American Airlines Group Inc

AAL.O fell over 2% in premarket trading.

Hotel and casino operators Las Vegas Sands Corp LVS.N and

Wynn Resorts Ltd WYNN.O , both of which have large operations

in China, dropped about 5%.

A top International Monetary Fund official said on Monday

that a slowdown in global growth appears to have bottomed out

but there is no rebound in sight. The IMF trimmed its global

growth forecasts for 2020 and 2021. The developments weighed on U.S. investors returning from a

long holiday weekend. Strong economic data, the signing of the

Phase 1 U.S.-China trade deal and an upbeat start to

fourth-quarter earnings season had sent Wall Street to new

all-time highs on Friday, helping post their strongest weekly

gains since August.

However, U.S. Treasury Secretary Steven Mnuchin told the

Wall Street Journal that the Phase 2 trade deal with China would

not necessarily be a "big bang" that removes all existing

tariffs. At 7:34 a.m. ET, Dow e-minis 1YMcv1 were down 39 points,

or 0.13%. S&P 500 e-minis EScv1 were down 9 points, or 0.27%

and Nasdaq 100 e-minis NQcv1 were down 32 points, or 0.35%.

Halliburton Co HAL.N rose 2% after the oilfield service

provider beat estimates for quarterly profit, helped by higher

drilling activity in international markets. Bank of America's fund manager survey showed that U.S.

technology and high-growth stocks have been the "most crowded"

trade for three months in a row and forecast S&P 500 .SPX

index to peak at 3,400 in the third quarter.

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