U.S. stock futures were sharply higher Wednesday, continuing a bounce back from Friday's coronavirus-driven plunge. The Dow Jones Industrial Average is set to add 300 points at Wall Street's open, putting it around 1% away from a record high and back to nearly breakeven for 2020. The Nasdaq closed at a record Tuesday and stands 5.5% higher for the year. The Dow, which soared over 500 points at one point Tuesday, closed 407 points higher. Ahead of Friday's monthly government employment report, ADP said Wednesday that 291,000 private-sector jobs were added in January. That was nearly double expectations and the best monthly gain since May 2015. General Motors beat on earnings, while Ford fell short.
Shares of Tesla were off about 2.7% in the premarket after surging another 13.7% on Tuesday. Canaccord Genuity on Wednesday downgraded the stock, which has more than doubled this year. Investors should wait for a better opportunity to buy after Tesla's "electrifying" run, Canaccord said in a note to clients. A Tesla executive said cars initially scheduled for delivery in early February will be delayed due to the outbreak of the new coronavirus. On Monday, Tesla shares soared nearly 20%. The stock has skyrocketed nearly 300% in the past six months.
Shares of Dow component Walt Disney were little changed in premarket trading a day after the media and theme park giant announced fiscal first-quarter earnings and revenue that beat expectations. The company said its new Disney+ video streaming service had 26.5 million paying subscribers during the quarter. Disney also expects to take a $175 million hit from the coronavirus outbreak if its Hong Kong and Shanghai Disney parks were to remain closed for two months.
Nike said the coronavirus outbreak will have a "material impact" on its operations in China, where it has temporarily closed half its stores. Nike shares were little changed in the premarket. Overnight, Chinese health officials increased confirmed cases of the virus to over 24,000, with 490 deaths there. There were two additional deaths outside of mainland China, one in the Philippines and the second in Hong Kong. Princess Cruises has placed 3,700 passengers and crew under mandatory quarantine for two weeks after 10 people aboard one of its cruise ships in Japan tested positive for the coronavirus.
The GOP-controlled Senate is likely to acquit Republican President Donald Trump at his impeachment trial on Wednesday. Trump on Tuesday night delivered his State of the Union address in the House chamber that approved two articles of impeachment against him in December. In the 2020 Democratic presidential race, ex-Mayor Pete Buttigieg and Sen. Bernie Sanders were neck-and-neck in the Iowa caucuses, according to partial results released by the Iowa Democratic Party a day after the first-in-the-nation nominating contest was marred by a tech meltdown. The New Hampshire primary is next, set for Tuesday.