Wall Street poised to open in the red
Premarket futures were indicating a lower open for stocks on Wall Street Monday, as traders continued to monitor the situation surrounding the coronavirus outbreak.
The total number of coronavirus deaths in China jumped to 908, the country’s health officials said this morning. There are also 40,484 confirmed cases of coronavirus in that country.
The United Kingdom has declared the outbreak of the deadly virus a “serious and imminent threat” to public health, in a move that allows the government to begin mandatory quarantine for those infected. Meanwhile, 14 Americans who were on the quarantined cruise ship the Diamond Princess have tested positive for the coronavirus, according to Japanese news outlets.
As of 5:05 a.m. ET, the blue-chip Dow futures were down 41.5 points, or 0.14% to 29,005.5 while the tech-heavy Nasdaq 100 futures dropped 8.88 points, or 0.09% to 9,400.62. The S&P 500 futures declined 3.62 points, or 0.11% to 3,321.88.
White House to release Trump’s fiscal 2021 budget plan
Meanwhile, the White House is set to release President Donald Trump’s fiscal 2021 budget plan later today. The $4.8 trillion budget proposal is expected to call for an extension of the disputed tax overhaul that was passed by Republicans lawmakers in 2017, according to the Wall Street Journal.
Trump will also ask Congress for $2 billion to complete the U.S.-Mexico border that he has demanded since his 2016 campaign to prevent illegal immigrants from coming into the country. His budget plan also seeks to cut spending on social safety nets and foreign aid.
However, the budget plan is not likely to pass in the Democrat-controlled House. “The budget is a statement of values and once again the President is showing just how little he values the good health, financial security and well-being of hard-working American families,” House Speaker Nancy Pelosi said in a statement.
Eli Lilly Alzheimer’s treatment fails clinical trial; stock tumbles
In other news, shares of Eli Lilly (NYSE: LLY) slumped in premarket hours Monday after the drug giant announced that solanezumab failed to meet the primary endpoint in a phase 2/3 platform trial, DIAN-TU, in people with or at risk of dominantly inherited Alzheimer’s disease.
“At this time, Lilly does not plan to pursue a submission for solanezumab in people with dominantly inherited Alzheimer’s disease,” the company said in a press release. El Lily also said the results will not hamper its separate solanezumab study in asymptomatic Alzheimer’s disease.
Alzheimer’s affects more than 40 million people worldwide, including nearly 6 million Americans. At the time of writing, LLY stock was down $6.91, or 4.72% to $139.50 a share.
