Dow futures, in another volatile overnight session, were pointing to losses at Tuesday's open on Wall Street after a morning G-7 statement contained no specific actions to the combat the economic risks of the coronavirus. Hopes for action from the Federal Reserve and world central banks to mitigate the impact of the coronavirus sparked a powerful rally on Monday. The Dow Jones Industrial Average soared nearly 1,300 points or 5% in its biggest percent-gain since March 2009, reclaiming a big chunk of last week's largest weekly decline since the 2008 financial crisis.
The Dow, S&P 500 and Nasdaq closed out of correction territory Monday. A correction is defined as a decline of at least 10% from recent 52-week highs. Meanwhile, investors will be looking for signs of how the coronavirus may be affecting retailers Target and Kohl's when they hold conference calls after issuing earnings. Target reported mixed fourth-quarter results before the bell. Kohl's beat on the top and bottom lines and hiked its dividend by 5%. Nordstrom leads Tuesday afternoon's retail earnings reports.
Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell on Tuesday morning led a conference call of global finance ministers and central bankers to coordinate an economic policy response to coronavirus. "We, G7 Finance Ministers and Central Bank Governors, are closely monitoring the spread of the coronavirus disease 2019 (COVID-19) and its impact on markets and economic conditions," according to a post-call statement. Early Tuesday, the 10-year Treasury yield, a benchmark for many consumer loans, moved higher after hitting a record low of 1.03% on Monday.
Ahead of the G-7 call, President Donald Trump once again called for the Fed to cut interest rates after the Australian central bank cut its rates to record lows and noted the impact of the coronavirus. In an early Tuesday morning tweet, the president said, "Jerome Powell led Federal Reserve has called it wrong from day one." Powell was appointed by Trump to lead the U.S. central bank.
The spread of coronavirus in China is slowing while new cases in many other countries are accelerating. The vast majority of the more than 91,000 global cases and over 3,100 deaths are still in China. However, new cases in South Korea surged by 851 on Tuesday, bringing total infections there to more than 5,100, including 31 deaths. Italy's cases rose to more than 2,000 with 52 deaths. The U.S. has at least 91 coronavirus cases with at least six deaths. On Capitol Hill, aides said negotiations were nearing completion on an emergency funding bill to develop a vaccine and offer disaster loans to businesses hurt by the crisis.
Vermont Sen. Bernie Sanders and former Vice President Joe Biden are vying for a victory in Texas, the second biggest delegate haul among the 14 states holding Democratic presidential nominating contests on Super Tuesday. Billionaire ex-New York City Mayor Mike Bloomberg, on ballots for the first Tuesday, and Massachusetts Sen. Elizabeth Warren could also win delegates as the primary field shrinks. A reinvigorated Biden gained endorsements from former South Bend, Indiana, Mayor Pete Buttigieg and Minnesota Sen. Amy Klobuchar, both of whom dropped out of the race after poor results in Saturday's South Carolina primary.