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US STOCKS-S&P 500, Dow ease from record highs after three-day rally

Published 06/02/2020, 16:39
Updated 06/02/2020, 16:47
© Reuters.  US STOCKS-S&P 500, Dow ease from record highs after three-day rally
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* China to halve extra tariffs on some U.S. imports

* Twitter advances as quarterly revenue tops $1 bln

* Kellogg declines after earnings outlook disappoints

* Indexes: Dow flat, S&P up 0.15%, Nasdaq up 0.29%

(Updates to open)

By Medha Singh

Feb 6 (Reuters) - The S&P 500 and Dow Jones Industrials

indexes eased from their record highs on Thursday, as investors

took a breather after a stellar run this week on waning worries

about the economic damage from the coronavirus epidemic.

Both indexes scaled new levels at the open as China said it

would halve extra tariffs on some U.S. goods following hefty

stimulus to support an economy hit by shutdowns and travel

restrictions due to the virus outbreak. "The fear investors had when the virus first started seems

to have abated somewhat," said Rick Meckler, partner, Cherry

Lane Investments, a family investment office in New Vernon, New

Jersey.

A string of positive U.S. economic data have also helped

mitigate worries, fueling a Wall Street rally this week. The

Nasdaq hit a record high in the previous session and the

benchmark S&P 500 is on pace for its best week in eight months.

However, the impact of the health emergency in China

continued to show up in corporate reports. Chipmaker Qualcomm

Inc QCOM.O flagged a potential threat to the mobile phone

industry from the outbreak. Its shares fell 4%. At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI

was nearly unchanged at 29,287.91, while the S&P 500 .SPX was

up 4.86 points, or 0.15%, at 3,339.55. The Nasdaq Composite

.IXIC was up 27.17 points, or 0.29%, at 9,535.86.

Seven of the 11 major indexes were lower, led by a 0.8% fall

for energy stocks .SPNY .

Breakfast cereal maker Kellogg Co K.N tumbled 6.1% after

it forecast full-year earnings well below market expectations.

Becton, Dickinson and Co BDX.N dropped 11.2% after the

medical technology company lowered its full-year revenue and

profit forecasts. The stock was the biggest drag on the S&P 500.

Philip Morris International Inc PM.N gained 4.4% after the

Marlboro cigarettes maker topped quarterly profit estimates.

Twitter Inc TWTR.N gained about 15.5% after the

micro-blogging platform touched $1 billion in quarterly revenue

for the first time ever, beating analysts' estimates.

Advancing issues outnumbered decliners by a 1.20-to-1 ratio

on the NYSE and by a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 55 new 52-week highs and no new low,

while the Nasdaq recorded 81 new highs and 20 new lows.

As the week draws to a close, investor attention will shift

to the crucial U.S. jobs report on Friday.

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