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US STOCKS-Indexes fall off record highs, but set for weekly gains

Published 07/02/2020, 20:44
Updated 07/02/2020, 20:46
© Reuters.  US STOCKS-Indexes fall off record highs, but set for 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 co targets profitability by end-2020

* Take-Two tumbles after revenue miss

* Indexes down: Dow 1.04%, S&P 0.66%, Nasdaq 0.7%

(Updates to mid afternoon)

By Lewis Krauskopf

Feb 7 (Reuters) - Wall Street pulled back from record levels

on Friday after a four-day rally as investors digested a report

showing U.S. job growth accelerated last month and braced for

the next developments involving the coronavirus spread out of

China.

Stocks were still poised for strong weekly gains with the

S&P 500 on pace for its biggest weekly percentage rise in eight

months and the Nasdaq set for its biggest weekly increase in

over 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 said.

The death toll in mainland China was above 630 as the

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

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 reports

earlier in the week, but Maley said the data may not be as

important because they may not incorporate any impact from the

coronavirus.

"We just don't know the long-term effects of the

coronavirus," Maley said.

The Dow Jones Industrial Average .DJI fell 305.79 points,

or 1.04%, to 29,073.98, the S&P 500 .SPX lost 22.09 points, or

0.66%, to 3,323.69 and the Nasdaq Composite .IXIC dropped

66.55 points, or 0.7%, to 9,505.60.

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

technology .SPLRCT the weakest performers.

Key risks to the U.S. economy have receded, the Federal

Reserve said in its late monetary policy report to Congress, but

the Fed did note risk from the fallout from the coronavirus

outbreak. 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 8.5% 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 11.1%

after the videogame publisher's adjusted revenue missed

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

2.03-to-1 ratio; on Nasdaq, a 2.46-to-1 ratio favored decliners.

The S&P 500 posted 34 new 52-week highs and 1 new lows; the

Nasdaq Composite recorded 71 new highs and 74 new lows.

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