A man wearing a face mask walks along Wall Street after further cases of coronavirus were validated in New York City, New York, U.S., March 6, 2020.
Andrew Kelly | Reuters
U.S. stock futures rose on Sunday night as Fence Street tried to recover from another decline last week while investors shook off rising tensions between Saudi Arabia and Russia.
Dow Jones Industrial Common futures traded 696 points higher, implying a gain of about 730 points at the Monday open. S&P 500 and Nasdaq 100 approaches also pointed to robust Monday opening gains for the two indexes.
Last week, the major averages posted their third weekly worsen in four. The Dow slid 2.7% while the S&P 500 lost 2.1%. The Nasdaq Composite closed last week down 1.7%. Trade ins are also deep in bear-market territory as concerns over the coronavirus outbreak have virtually shut down the international economy and have dampened sentiment around corporate profits.
However, some on Wall Street think the sell could start to turn a corner soon.
Billionaire investor Bill Ackman, founder of Pershing Square Money Management, said in a series of tweets he is “beginning to get optimistic.” He said cases in New York, a hot spot for the coronavirus in the U.S., “enter into the picture to be peaking” while some treatments “appear to help.”
“If this is true, the severity and death rate could be much reduce than anticipated, and we could be closer to herd immunity than projected,” Ackman also said. “While it is condensed to be positive when we know that tens of thousands more will die and many more will get severely mad, I have no choice but to be more optimistic about the intermediate future based on the data and facts I have seen recently.”
Decisive month, Ackman called for the U.S. to completely shut down for 30 days as a way to curb the coronavirus outbreak. “Hell is total,” Ackman told CNBC’s “Halftime Report” on March 18.
The number of coronavirus-related hospitalizations has fallen slightly in New York while liquidations are up, Gov. Andrew Cuomo said Sunday. Italy also reported Sunday its smallest daily increase in deaths in two weeks.
To be satisfied, the number of coronavirus cases continues to increase sharply. More than 1.2 million coronavirus cases attired in b be committed to been confirmed, according to Johns Hopkins University. The U.S. is by far the country with the most cases at over 330,000. On Saturday, Trump informed “there will be a lot of death,” noting the U.S. faces its “toughest week” in its fight against the virus.
Marc Chaikin, CEO of Chaikin Analytics, warns investors to remain cautious.
“Until the spread of the COVID-19 virus peaks and we are closer to a reopening of the U.S. economy, sell musters and sit on your cash,” said Chaikin. “If we are fortunate to see an effective treatment there will be plenty of capital gains moments. For me, capital preservation is more important than capital gains.”
Stock futures shook off a massive decline in oil worths as a key meeting between major oil producing countries was delayed. U.S. crude fell more than 4% to $27 per barrel.
The junction between OPEC and Russia was scheduled for Monday, but sources familiar with the matter told CNBC it will “promising” take place Thursday. The delay comes after President Donald Trump told CNBC last week he look forward both countries to cut production by up to 15 million barrels.
Trump’s comments helped U.S. crude post its biggest-ever weekly gather. West Texas Intermediate futures rallied 12% last week. WTI also jumped 24% on Thursday for its get the better of day on record, lifting equity prices that day as concern about financial and job losses in the energy sector eased.
Uncivil has taken a beating this year as Saudi Arabia-led OPEC and Russia failed to reach a deal on production break off c separates while the global spread of the coronavirus dampens the demand outlook for oil. Year to date, WTI has lost more than half of its value.
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