* Jan. private-sector payroll rise more than expected
* Coty surges on profit, revenue beat
* Ford slumps after weak 2020 forecast
* Indexes up: Dow 1.11%, S&P 0.89%, Nasdaq 0.66%
(Updates to open)
By Medha Singh
Feb 5 (Reuters) - U.S. stocks surged for a third straight
day on Wednesday and the Nasdaq hit a new record high, helped by
strong monthly domestic private jobs data and reports of
progress in developing a treatment to fight the fast-spreading
coronavirus.
Private-sector payrolls increased by 291,000 in January, the
ADP National Employment Report showed, far above expectations of
156,000 job additions.
"Investors are looking at economic data which is better than
expected and earnings season which have been good," said Art
Hogan, chief market strategist at National Securities in New
York.
"Markets are trying to price in a more realistic view of the
economic damage which will follow this disease."
Earlier in the day, stock index futures got a boost after a
report that a Zhejiang University team had found some drugs that
could inhibit the coronavirus in vitro cell experiments.
Separately, researchers in the UK told Sky News that they
have made a "significant breakthrough" in finding a vaccine.
Reuters could not independently verify the reports, but
several traders cited them for the sharp moves in global stock
markets.
The World Health Organization played down the reports,
saying "there are no known effective therapeutics against this
2019-nCoV (virus)". Wall Street has staged a stellar comeback in the past two
sessions from last week's steep declines after China pumped in
billions of dollars into the financial system this week to limit
the economic impact of the virus outbreak.
The country's central bank is likely to lower its key rate
on Feb. 20, sources told Reuters, as the death toll from the
epidemic climbs to nearly 500.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was
up 321.02 points, or 1.11%, at 29,128.65, the S&P 500 .SPX was
up 29.45 points, or 0.89%, at 3,327.04. The Nasdaq Composite
.IXIC was up 62.67 points, or 0.66%, at 9,530.65.
Ten of the 11 major S&P sectors were higher, led by a 2.5%
gain in energy stocks .SPNY , which tracked higher oil prices.
The U.S. earnings season has reached the halfway mark and
corporate America has largely beaten Wall Street expectations.
Coty Inc COTY.N jumped 17.3% as the cosmetics maker beat
estimates for quarterly profit and revenue. Ford Motor Co F.N tumbled 9.4% after the No. 2 U.S.
automaker delivered a weaker-than-expected 2020 forecast.
Advancing issues outnumbered decliners by a 3.49-to-1 ratio
on the NYSE and a 3.03-to-1 ratio on the Nasdaq.
The S&P index recorded 52 new 52-week highs and no new lows,
while the Nasdaq recorded 97 new highs and nine new lows.