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US STOCKS-S&P 500, Nasdaq set for new heights on hopeful coronavirus news

Published 11/02/2020, 15:09
Updated 11/02/2020, 15:18
© Reuters.  US STOCKS-S&P 500, Nasdaq set for new heights on hopeful coronavirus news
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Sprint set for best day ahead of ruling for T Mobile deal

* Under Armour slumps after surprise sales drop forecast

* Fed Chair Powell to testify before Congress at 10 a.m. ET

* Futures up: Dow 0.35%, S&P 0.31%, Nasdaq 0.45%

(Adds comments, company news and U.S. economy; updates prices)

By Medha Singh

Feb 11 (Reuters) - The S&P 500 and Nasdaq indexes were set

to hit record highs at the open on Tuesday as a top Chinese

health adviser said the coronavirus outbreak may plateau in the

next few weeks, while Sprint shares soared after winning a

federal judge's approval for its merger with T-Mobile.

After more than 1,000 deaths and weeks when the outbreak

centered in the Hubei province which roiled financial markets,

the country's foremost medical adviser on the epidemic said

infections may be over by April, with the number of new cases

already declining in some places. For investors trying to get back to a decade-long stocks

rally, however, it was still unclear how much of a hit the

world's second-largest economy would take as factories struggled

to resume production after an extended holiday.

"For the time-being investors are willing to say 'we are

going to invest in what we know' and what we know right now is

that the U.S. economy is in pretty good shape, earnings have

been better than expected and the Fed continues to have our

back," said Art Hogan, chief market strategist at National

Securities in New York.

Federal Reserve Chair Jerome Powell was fairly upbeat about

the outlook for the U.S. economy in his prepared remarks to

Congress on Tuesday, but cited a potential threat from the

coronavirus and concerns about the economy's long-term health.

His address is expected to begin at 10 a.m. ET (1500 GMT).

Dow e-minis 1YMcv1 rose 103 points, or 0.35%. S&P 500

e-minis EScv1 were up 10.25 points, or 0.31% and Nasdaq 100

e-minis NQcv1 rose 43.25 points, or 0.45%.

The S&P 500 .SPX and the Nasdaq closed at record highs on

Monday as largely better-than-expected quarterly earnings,

positive U.S. economic data and China's recent stimulus measures

helped investors look past fears about the virus fallout.

Sprint S.N soared 70.4% as a district court judge's

decision cleared the path for the deal with T-Mobile US

TMUS.O , which was originally valued at $26 billion.

T-Mobile shares jumped 9.6%, while larger rivals Verizon

Communications Inc VZ.N and AT&T Inc T.N rose 0.5% and 0.7%,

respectively.

Fourth-quarter earnings have largely been upbeat, with about

71% of the 324 S&P 500 companies that have reported results so

far beating profit estimates.

Hasbro Inc HAS.O climbed 5.8% after posting

better-than-expected quarterly profit, boosted by lower costs

and strong demand for toys based on Disney's Frozen and Star

Wars franchises. Under Armour Inc UA.N tumbled 14% after it forecast a

surprise drop in 2020 revenue, partly due to the coronavirus

outbreak.

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