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US STOCKS-Futures surge as China liquidity measures calm investor fears

Published 04/02/2020, 14:20
Updated 04/02/2020, 14:27
© Reuters.  US STOCKS-Futures surge as China liquidity measures calm investor fears

(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures up: Dow 1.23%, S&P 1.26%, Nasdaq 1.51%

By Medha Singh

Feb 4 (Reuters) - U.S. stock index futures jumped 1% on

Tuesday, signaling a recovery for Wall Street from a sharp

coronavirus-led pullback last week, with fresh intervention by

China's central bank calming investor nerves.

In a bid to cushion the economic blow of the epidemic, China

injected 1.7 trillion yuan ($242.74 billion) via reverse repos

on Monday and Tuesday, helping Chinese stocks reverse some

losses and lifting the world equity index .MIWD00000PUS .

The monetary intervention boosted investor sentiment even as

several economists cut their forecasts for 2020 global growth as

the death toll from the outbreak mounts and business operations

in China remain suspended.

Premarket gains on Wall Street were led by technology

stocks, with Intel Corp INTC.O , Apple Inc AAPL.O and

Microsoft Corp MSFT.O climbing between 1.5% and 2.2%.

Of the 30 Dow-listed industrial components .DJI , 29 were

trading higher.

But Alphabet Inc's GOOGL.O shares slipped 3.2% after

Google's advertising business and new data about YouTube and

Google Cloud broadly disappointed. At 8:16 a.m. ET, Dow e-minis 1YMcv1 were up 350 points, or

1.23%. S&P 500 e-minis EScv1 were up 41 points, or 1.26% and

Nasdaq 100 e-minis NQcv1 were up 137.5 points, or 1.51%.

Markets rebounded on Monday, supported by a surprise

expansion in U.S. factory activity, following the S&P 500's

.SPX worst weekly decline in six months. Fears about the coronavirus outbreak have overshadowed a

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largely positive fourth-quarter earnings season. About 70% of

nearly half of the S&P 500 companies that have reported so far

have surpassed earnings estimates.

Health insurer Centene Corp's CNC.N better-than-expected

quarterly revenue was eclipsed by a surge in medical costs,

sending its shares down 2.6%. MGM Resorts International MGM.N , Wynn Resorts WYNN.O ,

Las Vegas Sands LVS.N and Melco Resorts & Entertainment

MLCO.O dropped between 0.5% and 1.9% after Macau, the world's

biggest gambling hub, asked casinos to suspend operations for

two weeks to stem the coronavirus outbreak. Investors were also eyeing the U.S. Democratic presidential

nominating race that got off to a chaotic start on Monday, with

officials blaming "inconsistencies" for an indefinite delay in

the state's caucus results. In economic news, data at 10 a.m. ET is likely to show U.S.

factory orders rose 1.2% in December after a 0.7% slip in the

prior month.

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