The U.S. and China are in dispute over the coronavirus origins
Dow Jones Industrial Average (DJI) futures are poised to open the week with a triple-digit move below fair value. Futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also bracing for sharp losses, as investors eye a crumbling airline sector, grounded after Warren Buffett's Berkshire Hathaway dumped all of its airline sector holdings. Wall Street is also wary of a newly developing rift between the U.S. and China, as officials from the two superpowers trade barbs over the origins and handling of the coronavirus.
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Chevron stock couldn't capitalize on an earnings beat last week.The same could be said for this makeup retailer. Plus, Tyson Foods reports earnings whiff; Disney downgraded; and GM hurt by weak April auto sales.
The week starts off slow with factory orders. Avis Budget (CAR), Pitney Bowes (PBI), Shake Shack (SHAK), and Skyworks (SWKS) will report earnings.
Most markets in Asia were closed on Monday, with China, Japan, and Thailand's closed for holiday. Tensions between the U.S and China weighed, with U.S. Secretary of State Mike Pompeo echoing U.S. President Donald Trump on Sunday, saying that China will be held accountable for coronavirus. Of those who were open, Hong Kong's Hang Seng fell 4.2%, while the South Korean Kospi fell 2.7%.
Europe markets are feeling the global strain of these tensions as well, with the exception of London's FTSE 100 marking an 0.8% gain. Elsewhere, activity in the euro zone's manufacturing sector weighed, sending the French CAC 40 down 3.5%, and the DAX in Germany 3.2% lower.