Fred Imbert, Elliot Smith
Around 7:45 a.m. ET, Dow Jones Industrial Average futures were up 87 points, indicating a gain of 100 points at the open. S&P 500 and Nasdaq 100 futures traded higher as well.
China’s National Health Commission on Monday night said the death toll had risen to 1,016 people with 42,638 confirmed cases. However, data from Johns Hopkins University showed the number of new confirmed cases was its lowest since late January, increasing optimism around the country’s efforts to contain the outbreak.
Fears over the economic fallout from the outbreak have also been offset by positive economic indicators. Jobs data released last week easily beat analyst expectations while U.S. manufacturing and services activity show signs of improvement.
Both the S&P 500 and Nasdaq Composite closed at fresh highs on Monday, while the Dow jumped more than 170 points. However, companies such as Under Armour have noted they will take a hit from the outbreak. Under Armour warned Tuesday the outbreak could lower sales by $50 million to $60 million.
“While the stock market assumes no impact from the virus as we continue to chug higher, expect much more of this kind of talk as companies figure out the full effect,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “For many companies, these sales will not be made up.”
Under Armour shares dropped more than 11% in the premarket.
On the data front, January National Federation of Independent Business optimism figures are expected at 6 a.m. ET and JOLTS job openings for December are due out at 10 a.m. ET.