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US STOCKS-S&P 500, Nasdaq reach record closing highs; Chinese workers return

Published 10/02/2020, 22:19
Updated 10/02/2020, 22:27
© Reuters.  US STOCKS-S&P 500, Nasdaq reach record closing highs; Chinese workers return
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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 0.60%, S&P 0.73%, Nasdaq 1.13%

(Updates to market close)

By Stephen Culp

NEW YORK, Feb 10 (Reuters) - The S&P 500 and the Nasdaq

closed at record highs on Monday as Chinese workers and

factories slowly returned to business following a Lunar New Year

holiday that was protracted by the deadly coronavirus outbreak.

All three major U.S. stock averages advanced in a

broad-based rally, boosted by index leaders Amazon.com AMZN.O ,

Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O .

Worries over the coronavirus kept 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, positive economic data and

China's recent stimulus have attracted buyers to the U.S.

equities market.

"The money that China injected into its economy is finding

its way around the world and you have a "buy anything and

everything' mentality," said Paul Nolte, portfolio manager at

Kingsview Asset Management in Chicago. "It's an index buy and

it's growth verses value."

"The U.S. is seeing some economic growth," Nolte added.

"We're the cleanest shirt in the dirty laundry, globally, and it

gives investors another reason to buy U.S. stocks."

Tesla Inc's TSLA.O stock rose 3.1% after its Shanghai

factory 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 174.31 points,

or 0.6%, to 29,276.82, the S&P 500 .SPX gained 24.39 points,

or 0.73%, to 3,352.1 and the Nasdaq Composite .IXIC added

107.88 points, or 1.13%, to 9,628.39.

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

.SPNY ended the session in the black, with technology

.SPLRCT and consumer discretionary .SPLRCD shares posting

the largest percentage gains.

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 1.4%.

Eli Lilly LLY.N dropped 0.6% 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

1.50-to-1 ratio; on Nasdaq, a 1.46-to-1 ratio favored advancers.

The S&P 500 posted 46 new 52-week highs and 4 new lows; the

Nasdaq Composite recorded 105 new highs and 96 new lows.

Volume on U.S. exchanges was 6.60 billion shares, compared

with the 7.66 billion average over the last 20 trading days.

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