U.S. stock futures were pointing to a lower open on Tuesday, with global stocks from Asia to Europe under pressure. The U.S. market was closed Monday for the Martin Luther King Jr. holiday. On Friday the Dow Jones Industrial Average, S&P 500 and Nasdaq closed at record highs again. For the week, the Dow and S&P 500 were nearly 2% higher, while the Nasdaq's weekly gain was over 2%. So far, 2020 has picked up where last year's rally left off. The S&P 500's near 29% advance last year was the best annual performance since 2013.
President Donald Trump on Tuesday morning addressed the World Economic Forum in Davos, Switzerland, and touted his "America First" agenda. He encouraged other nations to adopt a similar nation-focused approach to economics and political relations around the world. Trump also spoke glowingly of negative interest rates in Europe and Japan and took another shot at the Federal Reserve. "They get paid to borrow money, something I could get used to very quickly," the president said of countries that have adopted negative rates. "Love that." White House top economic advisor Larry Kudlow, talking to CNBC on Tuesday from Davos, said that U.S. economic growth will top 3% this year.
Steve Schwarzman, billionaire co-founder of private equity powerhouse Blackstone, told CNBC on Tuesday he sees fewer buying opportunities because markets and assets have become so expensive. "Everything is up. You have to see something reasonably remarkable in terms of your ability to improve the operations of a company," he said in a "Squawk Box" interview from Davos. Billionaire investor Paul Tudor Jones from Davos said the "crazy" U.S. stock market run lately reminds him of early 1999, right before the dotcom bubble burst.
Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal crashes of its 737 Max planes. The company has secured at least $6 billion from banks, the people said, and is talking to other lenders for more contributions. The total amount could rise if there is additional demand from banks, one person familiar with the matter said.
Concerns are growing about a contagious strain of pneumonia in China. The outbreak of a new coronavirus in China killed six people, with confirmed cases nearing 300 ahead of the Lunar New Year holiday, during which hundreds of millions of people are expected to travel. The outbreak has sparked alarm because the disease is in the same family of viruses as severe acute respiratory syndrome. The SARS epidemic, which emerged in China in 2002, killed nearly 800 people worldwide and triggered a severe economic downturn in the region.