US STOCKS-Futures slide as coronavirus spreads beyond China

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* Futures down: Dow 0.34%, S&P 0.38%, Nasdaq 0.46%

By Sruthi Shankar
Feb 21 (Reuters) - U.S. stock index futures lurched
downwards on Friday as a spike in new coronavirus cases in China
and elsewhere sent investors scrambling for safer assets such as
gold and government bonds.
The risk-off mood was exacerbated by data showing Japan's
factory activity suffered its steepest contraction in seven
years in February, underlining the risk of a recession in the
world's third-largest economy as the outbreak takes a toll on
global growth. With massive disruptions in supplies from China, parts
shortages are hitting businesses as far away as the United
States.
U.S. stocks fell about 1% at one point on Thursday, with
high-growth stocks including Microsoft Corp MSFT.O and Apple
Inc AAPL.O taking the biggest hit.
Beijing reported an uptick in cases of coronavirus on Friday
and South Korea reported 100 new cases that doubled its
infections, while more than 80 people have tested positive for
the virus in Japan. Although daily updates on the spread of the virus have kept
investors on edge, hopes that central banks across the globe
will take measures to counter any slowdown have cushioned global
stocks and kept the benchmark S&P 500 .SPX near all-time
highs.
At 7:15 a.m. ET, Dow e-minis 1YMcv1 were down 100 points,
or 0.34%. S&P 500 e-minis EScv1 were down 12.75 points, or
0.38% and Nasdaq 100 e-minis NQcv1 were down 44.5 points, or
0.46%.
Investors will keep an eye on IHS Markit's U.S.
manufacturing and services sector activity data for February,
due at 9:45 a.m. ET, to gauge the impact of coronavirus on
businesses.
A host of Federal Reserve officials including Dallas Fed's
Robert Kaplan and Cleveland Fed President Loretta Mester - both
voting members of interest-rate setting committee this year -
are set to speak later in the day.
Traders are looking for signs on whether the Fed will cut
rates this year amid fears of the coronavirus outbreak denting
global growth. However, recent data has suggested U.S. economy
is showing no signs of losing steam. Among stocks, Dropbox Inc DBX.O jumped 11.9% in premarket
trading after it raised its outlook for operating margin and
announced a $600 million share buyback, while Deere & Co DE.N
rose 8.2% after an unexpected rise in first-quarter profit.
Sprint Corp S.N climbed 5.5% as it announced new merger
terms with T-Mobile US TMUS.O that would reduce the stake of
major Sprint shareholder SoftBank. T-Mobile shares dipped 1%.