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US STOCKS-S&P 500, Nasdaq tick lower as coronavirus worries weigh

Published 14/02/2020, 19:34
US STOCKS-S&P 500, Nasdaq tick lower as coronavirus worries weigh
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* Nvidia climbs after upbeat revenue forecast, lifts

chipmakers

Expedia jumps on upbeat core earnings outlook

* Indexes down: Dow 0.28%, S&P 0.09%, Nasdaq 0.06%

(Updates to early afternoon)

By Medha Singh

Feb 14 (Reuters) - The S&P 500 and the Nasdaq edged lower on

Friday as concerns about an economic hit from the coronavirus

outbreak outweighed a boost from Nvidia shares after the

chipmaker's upbeat outlook.

Nvidia Corp NVDA.O jumped 7.2% after it forecast

first-quarter revenue ahead of analysts' estimates, reinforcing

expectations of a rebound in chip demand and lifting the broader

technology .SPLRCT sector by 0.2%. Meanwhile, the coronavirus epidemic in China showed no signs

of easing, with new cases topping 5,000 on Friday. A recent Reuters poll showed the world's second-biggest

economy will grow at its slowest pace since the financial crisis

in the current quarter but the downturn will be short-lived if

the outbreak is contained. "The coronavirus still remains a concern but it appears for

now at least that the assumption is it won't impact the U.S. too

much and that it will be something that can be controlled in

China," said Rick Meckler, partner at Cherry Lane Investments, a

family investment office in New Vernon, New Jersey.

Wall Street was on course for a second straight weekly gain

after hitting a series of record highs on a largely positive

fourth-quarter earnings season and confidence in the U.S.

economy.

However, data released on Friday was not so upbeat. A

Commerce Department retail sales report showed consumer spending

likely slowed further in January, while separate data indicated

industrial production fell more than expected last month.

At 13:15 a.m. ET, the Dow Jones Industrial Average .DJI

slipped 0.28% to 29,341.05. The S&P 500 .SPX fell 0.09% to

3,371.06 and the Nasdaq Composite .IXIC was down or 0.06% at

9,706.43.

U.S. financial markets are closed on Monday for President's

Day holiday.

With the fourth-quarter earnings season starting to wind

down, about 77% of the 387 S&P 500 firms that have reported so

far have topped earnings estimates, according to IBES by

Refinitiv.

Expedia Inc EXPE.O jumped 10.9% after the online travel

services company forecast strong quarterly core earnings amid

coronavirus uncertainties. Apart from tech, the defensive real estate .SPLRCR ,

utilities .SPLRCU and consumer staples .SPLRCS were in the

positive territory among the 11 major S&P sectors. Energy stocks

.SPNY dropped 1.2%.

Declining issues outnumbered advancers for a 1.09-to-1 ratio

on the NYSE and for a 1.42-to-1 ratio on the Nasdaq.

The S&P index recorded 63 new 52-week highs and four new

lows, while the Nasdaq recorded 118 new highs and 45 new lows.

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