Wall Street set to open lower on virus woes, US-China tensions

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Wall Street set to open lower on virus woes, US-China tensions
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U.S. stock index futures rose on Tuesday as investors geared up for quarterly earnings reports from the big U.S. banks to provide clues on ...

REUTERS: Wall Street was set for a lower open on Tuesday as investors digested a mixed bag of quarterly reports from U.S. lenders, with new business restrictions in California and simmering U.S.-China friction also denting risk appetite.

But a recent record surge in COVID-19 cases and new business restrictions, particularly in California, have sparked a selloff in tech stocks, with the Nasdaq pulling back from record highs. Investors are bracing for what could be the sharpest drop in quarterly earnings for S&P 500 firms since the 2008 financial crisis, according to Refinitiv IBES data."Expectations are so low that there's a good chance there will be a decent set of earnings reports over the next two or three weeks," said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland, Ohio.

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