Dow Jones Futures Sharply Lower On Coronavirus Concerns
Dow Jones managed to close on positive territory yesterday as investors trying to shift their attention from coronavirus outbreak to corporate earnings. Apple earnings report beat estimates. Τhe Fed kept the interest rates unchanged in 1.50%-1.75% range. Fed noted that the U.S. economy is growing at a moderate pace while the inflation remains subdued. Household spending is increasing while the investments in fixed assets remain weak. Fed Chair Powell warned that the coronavirus spread would hit China’s economy and that could spill in the USA as well.
At the close of the Wall Street trading session yesterday, the Dow Jones Industrial Average closed up 0.04% at 28734. The S&P 500 Index was 0.09% lower at 3273, and the Nasdaq was 0.06% higher at 9275.
On the data front, the US Department of Commerce, reported that the so-called visible trade deficit increased in December by 8.5% versus November to reach $68.3bn, above the expectations for $64.5bn. Also the Association of Realtors reported that its pending home sales index dropped 4.9% to 103.2 in December.
The Dow Jones futures as of writing trading 0.73% lower at 28503. On the technical side the index futures approach the 50-day moving average. If the futures price break below that support the positive momentum might be cancelled at least for the short term