Futures point to a lower open
U.S. stock futures indicated a lower open Thursday, as traders mulled coordinated efforts to contain the novel coronavirus outbreak that has taken root in several countries outside China, including Italy, Iran, South Korea, Japan, Singapore, Thailand and Taiwan.
California Governor Gavin Newsom declared a state of emergency yesterday after a man who had contracted the virus during a cruise died, taking the U.S. death toll from the illness to 11.
Newsom said local health officials are working with their federal officials to trace people who had contact with the patient. The virus has now been reported in 16 states and sickened nearly 150 people, according to the New York Times.
As of 6:00 a.m. ET, the blue-chip Dow futures were down 479 points, or 1.78% to 26,486. The S&P 500 futures dropped 59.86 points, or 1.92% to 3,054.88 while the tech-heavy Nasdaq 100 futures lost 171.12 points, or 1.92% to 8,725.38.
Oil rises ahead of OPEC meeting
Oil futures jumped on Thursday morning, as traders awaited a decision on output from major oil producers, following a Reuters report that OPEC and its allies (including Russia) are expected to approve the outlines of a deal for further cuts in oil production to boost prices hurt by the Covid-19 outbreak.
“The market is anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact to world’s energy demand. More production curb is needed to shore up crude prices,” Margaret Yang, a market analyst at CMC Markets told Reuters.
As of 6:00 a.m. ET, U.S. West Texas Intermediate crude futures rose 33 cents, or 0.71% to $47.11 per barrel. International Brent crude oil futures gained 38 cents, or 0.74% to $51.51 a barrel.
HP rejects Xerox takeover bid again
HP (NYSE: HPQ) has once again rejected Xerox (NYSE: XRX) takeover bid. The personal computer maker said the $35bn deal meaningfully undervalues it and disproportionately benefits Xerox shareholders at the expense of its shareholders.
“The Xerox offer would leave our shareholders with an investment in a combined company that is burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company,” HP board chairman Chip Bergh said in a statement Thursday.
Xerox had raised its offer last month to $24 per share from $22 per share after its previous buyout bids were rejected by HP.
