Dow set to drop 200 points as coronavirus death toll rises, Facebook shares tumble

FAN Editor

U.S. stock index futures fell sharply on Thursday as the death toll from the coronavirus continues to rise in China, stoking fears about the virus’ impact on global economic growth. 

Around 7:25 a.m. ET, Dow Jones Industrial Average futures implied a loss of 200 points at the open. S&P 500 and Nasdaq 100 futures also pointed to steep losses at the open. 

China’s National Health Commission confirmed Thursday that the death toll has hit 170, with confirmed cases of the virus surpassing 7,700. Cases have also been confirmed in places outside of China, including the U.S.

“The spread of the Wuhan virus isn’t accelerating, but markets becoming more concerned about future earnings and economic growth as companies implement work stoppages to reduce the chance of the disease spreading,” said Tom Essaye, founder of The Sevens Report. 

Customers queue to buy facial masks to prevent an outbreak of a new coronavirus, in Hong Kong, China January 28, 2020.

Tyrone Siu | Reuters

Airline stocks such as American, Delta and United all fell more than 1% in the premarket. Casino stocks Las Vegas Sands and Wynn Resorts dropped 2.1% and 1.9%, respectively. Expedia and Carnival shares were down by 3% and 7.5%, respectively. 

Caterpillar, a bellwether for global the global economy, was down 1.2% while the VanEck Vectors Semiconductor ETF (SMH) slid 0.7%.

Wall Street was also under pressure after Facebook reported quarterly results that showed a sharp rise in expenses and narrowing margins. Facebook shares fell more than 7% in the premarket. 

Tesla enjoyed a second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this year, sending the stock surging by 11.5%. Microsoft beat Wall Street expectations on fourth-quarter sales and profit on the back of strong cloud revenue.

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