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US STOCKS-Indexes drop from record highs, but tally strong weekly gains

Published 07/02/2020, 22:32
Updated 07/02/2020, 22:36
© Reuters.  US STOCKS-Indexes drop from record highs, but tally strong weekly gains
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Mild weather boosts U.S. job growth

* Uber rises after it targets profitability by end-2020

* Take-Two tumbles after revenue miss

* Indexes down: Dow 0.94%, S&P 0.54%, Nasdaq 0.54%

(Adds close of U.S. market)

By Lewis Krauskopf

Feb 7 (Reuters) - Wall Street fell from record levels on

Friday after a four-day rally as investors digested the monthly

U.S. jobs report and braced for the next coronavirus

developments, but stocks still posted solid gains for the week.

The S&P 500 recorded its biggest weekly percentage increase

in eight months and the Nasdaq tallied its biggest weekly rise

in more than a year.

"It's just a technical pullback based on the big run-up we

had this week," said Matt Maley, chief market strategist at

Miller Tabak.

"Ever since the coronavirus became a big deal, people have

pulled back a little bit on Friday because they didn't know what

was going to happen over the weekend," Maley added.

The Labor Department's closely watched employment report

showed nonfarm payrolls increased by 225,000 jobs last month,

while economists polled by Reuters had forecast payrolls would

rise by 160,000 jobs. The report followed other encouraging U.S. economic data

earlier in the week. Indeed, key risks to the U.S. economy have

receded, the Federal Reserve said in its latest monetary policy

report to Congress, but the Fed did note risk from the fallout

from the coronavirus outbreak. The death toll in mainland China topped 630 as the

coronavirus epidemic roiled the world's second-largest economy.

"We still don't know the magnitude of the economic damage

that the coronavirus will eventually do to the global economy

and that continues to get contemplated by market participants,"

said Art Hogan, chief market strategist at National Securities.

The Dow Jones Industrial Average .DJI fell 277.26 points,

or 0.94%, to 29,102.51, the S&P 500 .SPX lost 18.07 points, or

0.54%, to 3,327.71 and the Nasdaq Composite .IXIC dropped

51.64 points, or 0.54%, to 9,520.51.

Most S&P 500 sectors fell, with materials .SPLRCM and

technology .SPLRCT the weakest performers.

Fourth-quarter corporate reporting season is more than

halfway done and overall S&P 500 earnings are expected to have

climbed 2.3% in the period, according to IBES data from

Refinitiv.

In company news, Uber Technologies Inc UBER.N shares

climbed 9.5% after the ride-hailing company laid out an

ambitious plan to be profitable by the end of 2020. Take-Two Interactive Software Inc TTWO.O shares fell 11.9%

after the videogame publisher's adjusted revenue missed

estimates. Declining issues outnumbered advancing ones on the NYSE by a

1.83-to-1 ratio; on Nasdaq, a 2.20-to-1 ratio favored decliners.

The S&P 500 posted 37 new 52-week highs and one new low; the

Nasdaq Composite recorded 81 new highs and 79 new lows.

About 7.1 billion shares changed hands in U.S. exchanges,

below the roughly 7.7 billion daily average over the last 20

sessions.

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