January 28, 2020 / 2:07 PM / 22 days ago

CORRECTED-US STOCKS-Wall Street set to recover after turbulent Monday

(Corrects last paragraph to say Xerox “forecast” 2020 profit, not “reported”)

* Apple gains 1% ahead of earnings

* 3M slips on downbeat 2020 profit forecast

* Harley Davidson slides after revenue misses est

* Futures up: Dow 0.46%, S&P 0.61%, Nasdaq 0.84%

By Sruthi Shankar

Jan 28 (Reuters) - U.S. stock indexes were on track to recover on Tuesday after the S&P 500 suffered its worst day in nearly four months in the previous session on fears that a coronavirus outbreak could hit global economic growth.

Markets across the world stabilized as the head of the World Health Organisation (WHO) said he was confident in China’s ability to contain the virus outbreak, which has killed 106 people, prompted businesses to close operations and curbed travel.

“Some of the comments coming out of the WHO and other medical advisers are helping markets catch a breath after yesterday’s decline which was somewhat overdone,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Investors will keep a close watch on Apple Inc results, due after markets close amid concerns of a disruption in iPhone production as the coronavirus spreads across major markets like China.

Its shares were up 1.2% in premarket trading after falling about 3% on Monday amid a broad-based pullback in U.S. stocks.

At 8:49 a.m. ET, Dow e-minis rose 130 points, or 0.46%. S&P 500 e-minis gained 19.75 points, or 0.61% and Nasdaq 100 e-minis were up 75 points, or 0.84%.

U.S. industrial giant 3M Co slid 1.8% after it forecast 2020 profit below expectations as it faced sluggish demand in Asia.

Earnings are now expected to show a decline of 0.5% for the fourth quarter, according to Refinitiv data. Of the 87 companies that have reported though Monday, 67.8% have topped expectations, below the 74% rate from the past four quarters.

Pfizer Inc fell 2% after posting a lower-than-expected quarterly profit on disappointing sales of breast cancer drug.

The Fed officials will gather for the first policy meeting of the year on Tuesday, and markets do not expect the central bank to change its benchmark overnight lending rate at the end of the meeting on Wednesday.

Shares in Harley-Davidson Inc tumbled 5.9% after the company reported a larger-than-expected decline in its motorcycles revenue.

Shares in Xerox Holdings Corp, known for its photocopiers and printers, jumped 4.6% after it forecast 2020 profit above Wall Street expectations. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)

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