Futures rise sharply
U.S. stock futures traded sharply higher in early premarket trade on Monday, as the coronavirus death toll in New York and other hotspots eased over the weekend. New York reported 594 novel coronavirus (COVID-19) deaths on Sunday, down from the 630 it reported on Saturday.
Gov. Andrew Cuomo said there were now 122,000 confirmed infections in the state. He also added that about 75% of patients who have gone into the hospital system had now been discharged. However, Cuomo said it was too early to know if the outbreak had reached a peak in New York, the hardest-hit U.S. state by the coronavirus.
The rate of new infections and deaths also showed signs of slowing in Italy and Spain. In Italy, health officials reported 525 deaths on Sunday, the lowest daily number since March 19. Spain reported 674 deaths, the lowest daily death toll in over a week.
By 5:30 a.m. ET, the blue-chip Dow futures were up 809 points, or 3.86% to 21,766. The S&P 500 futures rose 96.5 points, or 3.89% to 2,579.25 while the tech-heavy Nasdaq 100 futures advanced 308.5 points, or 4.10% to 7,831.25.
Crude slumps as Saudi Arabia and Russia delay talks
Meanwhile, crude futures moved lower early Monday on reports that Russia and Saudi Arabia have delayed talks about a deal to cut production. The news raised doubt on a potential deal that could help shore up oil prices amid the coronavirus pandemic.
Crude prices surged last week after President Donald Trump expressed optimism of a deal between Russia and Saudi Arabia to lower production. The two oil giants have been locked in a fierce oil price war since March after failing to reach an output cut agreement.
By 5: 30 a.m. ET, U.S. West Texas crude futures were at $27.52 a barrel, down 82 cents, or 2.89%. International Brent crude futures dropped $1.06, or 3.11% to $33.05 a barrel.
Zoom Video stock sinks after downgrade by Credit Suisse
Zoom Video Communications (NASDAQ: ZM) shares tumbled in Monday’s premarket trade after the company was downgraded to “underperform” from “neutral” with a price target of $105, up from $95 by Credit Suisse.
“Trading at 40 times 2020 consensus revenue expectations, the current share price embeds significantly greater conversion of free users than an upside model scenario suggests,” Credit Suisse analyst Brad Zelnick said in a note to clients.
“While Zoom is benefiting from having the “best product at the right time,” the overall category remains competitive and every unified communication as a service vendor will eventually offer its own video solution,” Zelnick added.
As of this writing, the stock was down $10, or 7.80% to $118.20 a share in pre-market session.
