Stock futures lower
U.S. stock futures were trading slightly lower on Monday morning, after new COVID-19 cases in South Korea and the central Chinese city of Wuhan sparked fears about the possibility of a deadly second wave of the virus.
South Korea has once again shut nightclubs, discos and bars in Seoul after a surge in infections linked back to the capital’s entertainment district. Officials there reported 35 new cases on Sunday, an apparent increase as the country loosens stay-at-home orders.
Chinese authorities also reported the first cluster of infections in Wuhan since the lockdown was lifted last month.
By 6 a.m. ET, the blue-chip Dow futures were down 80 points, or 0.33% to 24,206. S&P 500 futures dropped 10.62 points, or 0.36% to 10.62 while the tech-heavy Nasdaq 100 futures fell 2.87 points to 9,215.38.
Elon Musk says Tesla will leave California
Meanwhile, Tesla (NASDAQ: TSLA) chief executive Elon Musk on Saturday threatened to move the company’s headquarters and factory out of California to Texas or Nevada because of coronavirus lockdowns.
Musk also filed a lawsuit against a California county that barred Tesla from resuming production at its Fremont factory over coronavirus concerns.
“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant ‘Interim Health Officer’ of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!” Musk in a tweet on Saturday
“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately,” he added.
As of writing, Tesla stock was down 2.72% to $797.10 a share in premarket trade Monday.
More earnings eyed
Marriott International (NASDAQ: MAR) and Under Armour (NYSE: UA) are scheduled to publish their financial results ahead of the opening bell.
Other companies reporting after the bell include Cardinal Health (NYSE: CAH), AutoNation (NYSE: AN), and Mylan (NASDAQ: MYL).
Notable earnings to watch after the market close include Tilray (NASDAQ: TLRY), Tencent Music Entertainment (NYSE: TME), II-VI (NASDAQ: IIVI), and American Financial (NYSE: AFG).
