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US STOCKS-Wall Street higher on U.S. growth optimism; Nasdaq hits record

Published 10/02/2020, 18:05
Updated 10/02/2020, 18:09
© Reuters.  US STOCKS-Wall Street higher on U.S. growth optimism; Nasdaq hits record
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* Tech stocks provide biggest boost to S&P, Nasdaq

* Apple slips as China business shutdown threatens demand

* Tesla jumps after Shanghai factory resumes production

* Indexes up: Dow 0.28%, S&P 0.36%, Nasdaq 0.62%

(Changes comment, adds details, updates prices)

By Medha Singh

Feb 10 (Reuters) - U.S. stocks rose and the Nasdaq hit a

record high on Monday, as a recent set of strong domestic

economic data and largely upbeat fourth-quarter earnings

tempered worries about the impact of the coronavirus outbreak on

global growth.

People returned to work in China after an extended new year

holiday even as the country grappled with the epidemic that has

now claimed more lives than Severe Acute Respiratory Syndrome

(SARS). "Some people think the outbreak may have a very decelerating

impact on growth in China specifically," said Peter Kenny,

founder at Kenny's Commentary LLC and Strategic Board Solutions

LLC in New York.

"But at the end of the day, corporate earnings and U.S.

economic data are very strong and we're seeing more of that

confidence being priced into stock performances."

Wall Street's main indexes slipped from record highs on

Friday, but the S&P 500 .SPX posted its best week in eight

months.

Of the 324 S&P 500 companies that have reported quarterly

results so far, about 71% have beaten earnings estimates, which

is above the long-term average of 65%, according to IBES data

from Refinitiv.

At 11:34 a.m. ET, the Dow Jones Industrial Average .DJI

was up 81.65 points, or 0.28%, at 29,184.16 and the S&P 500

.SPX was up 12.05 points, or 0.36%, at 3,339.76. The Nasdaq

Composite .IXIC was up 58.56 points, or 0.62%, at 9,579.07.

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

.SPLRCT stocks climbing 0.7%.

Electric carmaker Tesla Inc TSLA.O rose 2.7% as its

Shanghai factory returned to service. Apple Inc AAPL.O fell marginally as analysts predicted

China's smartphone sales may plunge by as much as 50% in the

first quarter due to store closures and production suspensions

following the outbreak. Eli Lilly LLY.N dropped 2% after experimental drugs from

the U.S. pharmaceutical firm and Switzerland's Roche ROG.S

failed to halt Alzheimer's disease. Markets on Monday will also watch for President Donald

Trump's $4.8-trillion budget proposal for fiscal year 2021, and

Fed Chair Jerome Powell's two-day address to the U.S. Congress,

starting Tuesday.

Advancing issues outnumbered decliners by a 1.30-to-1 ratio

on the NYSE and by a 1.20-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs and two new

lows, while the Nasdaq recorded 64 new highs and 67 new lows.

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