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US STOCKS-Wall St set to fall from record highs on fears over new coronavirus case count

Published 13/02/2020, 15:10
© Reuters.  US STOCKS-Wall St set to fall from record highs on fears over new coronavirus case count
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* Cisco Systems drops after lackluster forecast

* NetApp plunges on disappointing profit forecast

* Caterpillar rises as Goldman Sachs upgrades to 'buy'

* New cases in China jump to 14,840 under new diagnosis

method

* Futures down: Dow 0.57%, S&P 0.55%, Nasdaq 0.74%

(Adds comment, details, updates prices)

By Medha Singh

Feb 13 (Reuters) - Wall Street was set to open lower on

Thursday after scaling record levels in the previous session, as

a spike in new coronavirus deaths and cases in China sent

investors scurrying for safe havens.

Gold and U.S. Treasuries were in demand as a new diagnostic

method pushed the number of new infections in China's Hubei

province to 14,840 on Thursday, up from 2,015 cases reported on

Wednesday, while the death toll climbed to 1,367. Fresh uncertainty about the scale of the epidemic looked set

to derail a rally in equities, a day after investors bought on

signs that the virus spread was slowing.

"The virus news coming out of China (is) a bit concerning,

especially when investors thought it was all behind them," said

Paul Nolte, portfolio manager at Kingsview Asset Management in

Chicago.

"We are also due for at least a little bit of a pullback."

The S&P 500 .SPX has risen in seven of the last eight

sessions. The benchmark index, along with the Nasdaq .IXIC ,

has set record closing high every day of this week, while the

Dow Jones Industrials .DJI settled at an all-time high on

Wednesday.

Adding to the downbeat mood was a lackluster revenue and

profit forecast from Dow component Cisco Systems Inc CSCO.O .

The network gear maker's shares dropped 5.5% in premarket

trading. NetApp Inc NTAP.O tumbled 13.2% as the data storage

equipment maker's current-quarter profit forecast fell short of

expectations.

At 8:41 a.m. ET, Dow e-minis 1YMcv1 were down 169 points,

or 0.57%. S&P 500 e-minis EScv1 were down 18.5 points, or

0.55%, and Nasdaq 100 e-minis NQcv1 were down 71.5 points, or

0.74%.

Among other stocks, Caterpillar Inc CAT.N rose 0.4% after

Goldman Sachs upgraded the construction and mining equipment

maker's shares to "buy".

Tesla Inc TSLA.O fell 4.2% on the electric car maker's

plans to raise $2 billon by selling shares through a public

offering. The fourth-quarter earnings season is winding down with 351

S&P 500 companies having reported so far. Of those, 70.9% have

topped profit estimates, according to IBES data from Refinitiv.

Markets shrugged off a report from the Labor Department that

showed underlying consumer prices picked up in January,

supporting the Federal Reserve's contention that inflation would

gradually rise toward its 2% target.

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