Dow tumbles as coronavirus effect banks earnings

US Stocks fell sharply on Wednesday as dismal economic data and weak bank earnings fueled concerns over the coronavirus’ impact on the U.S. economy.

The Dow Jones Industrial Average dropped 530 points at the open, or 2.2 percent. The S&P 500 slid 2.3 percent while the Nasdaq Composite traded 1.9 percent lower.

JPMorgan Chase set aside a stunning $6.8 billion worth of reserves to insulate itself from loan defaults, contributing to a 69 percent profit drop in the first quarter.

Bank of America, Goldman Sachs, UnitedHealth , and Citigroup are scheduled to report earnings on Wednesday.

Separately, shares of Tesla were rallying in the premarket after Goldman Sachs initiated the company with a “buy” rating, setting a target price at $864. Shares of the automaker closed Tuesday at $709.89, up 9%.

Airline stocks were also up sharply across the board in premarket trading after several U.S. airlines on Tuesday said they reached agreements with the Treasury Department for billions in government grants aimed at softening the fallout from the coronavirus outbreak.

Retail sales for March are expected to crater 8%, according to Dow Jones, and will be released at 8:30 am ET on Wednesday.