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US STOCKS-Wall Street on firm footing after virus-driven selloff

Published 26/02/2020, 19:23
© Reuters.  US STOCKS-Wall Street on firm footing after virus-driven selloff
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* TJX Cos jumps after quarterly same-store sales beat

* Walt Disney dips as CEO Robert Iger steps down

* U.S. health officials warn of pandemic

* Trump to speak on coronavirus at 6 p.m. ET

* Indexes up: Dow 0.40%, S&P 0.47%, Nasdaq 0.80%

(Updates to early afternoon)

By Medha Singh

Feb 26 (Reuters) - U.S. stocks rose on Wednesday after a

rocky start to the week that shaved off more than 6% from each

of the main indexes on growth fears as the coronavirus spread in

several countries.

However, the indexes had briefly hit session lows in early

afternoon trading and the Dow Jones Industrials .DJI turned

negative after several health officials expressed concerns about

the outbreak.

The U.S. Food and Drug Administration officials warned the

outbreak was on path to becoming pandemic, according to a

report. Germany is at the beginning of an epidemic after new cases

sprung up which can no longer be traced to the virus's original

source in China, its health minister said. "The selloff isn't driven by fundamentals, it is driven by

fear," said John Ham, associate advisor at New England

Investment and Retirement Group. "At the end of the day, it is a

buying opportunity for investors with a long-term focus."

Earlier in the day, U.S. Centers for Disease Control and

Prevention urged Americans to prepare for the virus to spread in

the United States. President Donald Trump is scheduled to hold a

news conference on the coronavirus at 6 p.m. ET (2300 GMT).

The main indexes have declined in the past four sessions and

the Dow .DJI shed more than 1,900 points in the last two days

on fears of a pandemic. The S&P 500 .SPX is still about 7% off

its all-time high it hit last Wednesday.

At 12:54 p.m. ET, the Dow Jones Industrial Average .DJI

was up 108.42 points, or 0.40%, at 27,189.78 and the S&P 500

.SPX was up 14.81 points, or 0.47%, at 3,143.02. The Nasdaq

Composite .IXIC was up 71.79 points, or 0.80%, at 9,037.40.

Gains in shares of marquee companies such as Apple Inc

AAPL.O , Microsoft Corp MSFT.O and Netflix Inc NFLX.O

boosted the benchmark S&P 500 .SPX .

Ten of the 11 major S&P sectors were trading higher, with

technology .SPLRCT leading the charge with a 1.1% gain. The

energy .SPNY sector dropped 1.3%.

Among stocks, TJX Cos Inc TJX.N jumped 7.1% as the

offprice retailer beat quarterly same-store sales estimates.

Walt Disney Co DIS.N slipped 2.9% on news that Robert Iger

will step down as chief executive officer, handing the reins to

Disney Parks head Bob Chapek. Beyond Meat Inc BYND.O rose 3.4% as Starbucks Corp

SBUX.O said its Canadian stores would start selling its

plant-based breakfast sandwich next week. Declining issues outnumbered advancers for a 1.00-to-1 ratio

on the NYSE. Advancing issues outnumbered decliners by a

1.10-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and 29 new

lows, while the Nasdaq recorded 18 new highs and 144 new lows.

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