US open: Stocks turn red as coronavirus outbreak remains firmly in focus

US stocks opened lower on Thursday as market participants largely remained focus on the spread of the Wuhan coronavirus.

As of 1530 GMT, the Dow Jones Industrial Average was down 0.29% at 28,650.83, while the S&P 500 was 0.48% weaker at 3,257.84 and the Nasdaq Composite came out the gate 0.34% softer at 9,244.09.

The Dow opened 83.62 points lower on Thursday after closing slightly higher during the previous session as the Federal Open Market Committee kept its interest rate target steady and struck an optimistic tone on the health of the US economy in its first policy meeting of 2020.

China's National Health Commission confirmed on Thursday that the death toll had hit 170 - with confirmed cases of the virus exceeding 7,700 and spreading to the likes of India, the US, and the Philippines.

IG analyst Chris Beauchamp said: "Investors are acutely aware that this tragic situation has much further to run, and this leaves equities vulnerable to further falls. Given the potential implications of the China situation, last night's Fed meeting is very much a non-event. It is not even as exciting as the Fed statements of the past two years, let alone the immediate post-crisis period.

"The retreat in risk assets over the past 24 hours confirms that there is more downside to come, equities being firmly in a 'sell the rally' mode, something we haven't seen since early September."

On the macro front, America's economy edged past growth forecasts at the end of 2019, thanks to a strong showing from foreign demand as imports fell sharply, which helped to offset slower spending by households.

According to the Department of Commerce, in seasonally adjusted terms, the annualised rate of increase in US gross domestic product was unchanged at 2.1% over the final three months of the year.

That was unchanged from the previous quarter and one-tenth of a percentage point better than expected by the consensus.

Elsewhere, first-time unemployment claims in the US declined unexpectedly over the latest week, but only following a sharp upward revision to figures for the prior period.

According to the Department of Commerce, initial jobless claims in the States fell by 7,000 over the seven days ending on 25 January to reach 216,000. Economists had anticipated a print of 210,000.

In corporate news, the spotlight was on Tesla with shares of the electric vehicle manufacturer jumping 10% after its latest results, helping push its market capitalisation past the combined total of its Detroit rivals, Ford, GM and Fiat Chrysler.

There was also some 'market chatter' regarding the carmaker's chances of being included in the S&P 500 later in 2020.

UPS shares were down 5.92% despite posting a fourth-quarter adjusted profit that matched expectations, while Verizon shares dipped 0.89% following some mixed earnings.

Shares in soft drinks maker Coca-Cola fizzed 2.39% higher after reporting that profits had risen following its push into healthier products.

Trade bellwether Caterpillar was down 0.4%, while airline stocks were also flying lower - both as a result of fears surrounding the Wuhan coronavirus.

Still to come, Amazon, Visa, EA and Levi Strauss will all report earnings after the bell on Thursday.