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US STOCKS-Nasdaq hits new high as investors look beyond coronavirus

Published 10/02/2020, 20:23
Updated 10/02/2020, 20:28
© Reuters.  US STOCKS-Nasdaq hits new high as investors look beyond coronavirus
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Amazon, Microsoft, Alphabet lead indexes higher

* Tesla gains after Shanghai factory resumes production

* Simon Properties to buy Taubman Centers for $3.6 bln

* Indexes up: Dow 0.14%, S&P 0.26%, Nasdaq 0.61%

(Updates to late afternoon, changes dateline, byline)

By Stephen Culp

NEW YORK, Feb 10 (Reuters) - Wall Street gained ground and

the Nasdaq reached a new record on Monday as Chinese workers and

factories slowly returned to business following a Lunar New Year

holiday that was extended due to the deadly coronavirus

outbreak.

All three major U.S. stock averages were higher, led by

stalwarts Amazon.com AMZN.O , Microsoft Corp MSFT.O and

Alphabet Inc GOOGL.O .

Worries over the coronavirus continued to keep market

participants on edge, with the death toll rising to 908 and the

World Health Organization (WHO) warning that new cases outside

of China could be "the spark that becomes a bigger fire."

But generally upbeat earnings and early signs that the virus

was being contained helped attract buyers to the equities

market.

"It seems like the world is dealing with (the coronavirus)

as best as it can," said Peter Tuz, president of Chase

Investment Counsel in Charlottesville, Virginia. "It's accepted

there will be a slowdown due to it and the world has looked

right through that when it comes to valuing stocks."

"We know the coronavirus will affect results at least in

first quarter," Tuz added. "(But) we'll be back to growth as

usual for the rest of the year."

Tesla Inc's TSLA.O stock rose 2.7% on news that its

Shanghai factory had resumed production, and iPhone maker

Foxconn re-started a key plant in China with 10% of its

workforce. That is cold comfort for Apple, whose iPhone sales in China

could plunge by as much as 50% due to the virus, according to

analysts. The fast-spreading coronavirus has now caused more deaths

than the 2002-2003 SARS outbreak, and has affected a broad range

of companies and sectors. The Dow Jones Industrial Average .DJI rose 41.05 points,

or 0.14%, to 29,143.56, the S&P 500 .SPX gained 8.73 points,

or 0.26%, to 3,336.44 and the Nasdaq Composite .IXIC added

58.03 points, or 0.61%, to 9,578.54.

Of the 11 major sectors in the S&P 500 all but energy

.SPNY , financial .SPSY and materials .SPLRCM were in the

black, with consumer discretionary .SPLRCD enjoying the

largest percentage gain.

Fourth-quarter reporting season is approaching the final

reel, with 324 of the companies in the S&P 500 having reported.

Of those, 70.7% have beat Street estimates, according to

Refinitiv data.

Analysts now see aggregate year-on-year fourth-quarter

earnings growth of 2.3%, a reversal from the 0.3% decline

analysts projected on Jan 1.

Mall operator Taubman Centers Inc TCO.N jumped 53.2% on

news that it would be bought by larger rival Simon Property

Group Inc SPG.N in a deal valued at $3.6 billion. Simon

Property Group's shares inched up 0.6%.

Eli Lilly LLY.N dropped 1.0% after experimental

Alzheimer's treatments from the U.S. pharmaceutical firm and

Switzerland's Roche ROG.S failed to halt the disease.

Advancing issues outnumbered declining ones on the NYSE by a

1.16-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored advancers.

The S&P 500 posted 37 new 52-week highs and 3 new lows; the

Nasdaq Composite recorded 84 new highs and 80 new lows.

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