US stock futures point to lower start on Wall Street after Trump tests COVID positive

The US president testing positive for coronavirus (COVID-19) seems to have sent stock markets tumbling this Friday. In pre-market trade, the Dow Jones Industrial Average is off 378 points, or 1.37%, while the tech heavy Nasdaq is down over 242, or 2.10%. Futures for the broader based S&P500 are down nearly 50 points. It also comes ahead of this afternoon’s release of jobs figures for September. "This morning it was revealed that US President Trump and the first lady tested positive for COVID-19. He stated that he will go into quarantine. The big question is how ill he will become and to what extent it will affect his campaigning efforts for the US presidential election,” said Nordic investment bank, Danske bank. "Another question is whether other members of his administration have been infected. The uncertainty is hurting risk sentiment,” the bank added. Rupert Thompson, the chief investment officer at asset management firm, Kingswood, said the presidential infection means that the US election looks even more certain to be a source of volatility for markets over the next month or two. “Following this week’s Presidential debate, the odds seemed to be moving further in Biden’s favour. Now, however, a new wild-card has been thrown into the pot. While the inevitable increased focus on COVID should work in Biden’s favour, Trump could benefit from a sympathy vote,” Thompson said. "The news may also impact the economy with COVID sceptics turning more cautious in their behavior, slowing the recovery. At the same time, it could increase the pressure on Congress to agree a new fiscal stimulus package which, until now, they have failed to do. It was already looking as if markets had entered choppy waters and the latest development just means the waves could be a little larger,” he concluded. Five things to watch for on Friday The big event today is of course the release of the US job creation data (non-farm payrolls) for last month (September). These will be released at 8:30 am EST and analysts expect the number to increase by 894,000 new job, while the unemployment rate is projected to decline to 8.2% from 8.4%. A disappointing jobs number could spark a significant stock market downturn. Also in focus will be the University of Michigan's consumer sentiment index for September is scheduled for release at 10am. Consumer sentiment is estimated to rise slightly to 79.0 in September versus preliminary reading of 78.9. Also on the calendar for release today is data on US motor vehicle sales for September. In the world of the black stuff, the closely watched Baker Hughes North American rig count report for the latest week is scheduled for release this afternoon. The information gives an indication of how healthy the oil E&P (exploration and production) market is, as it shows how many drill rigs are active at the moment. In company news of note, banking giant Goldman Sachs Group Inc (NYSE:GS) has reportedly unveiled plans to acquire the credit card business of automobile titan General Motors Company (NYSE:GM). Goldman Sachs shed 1.81% in future trade. GM shares are down 1.61% in pre-market.