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US STOCKS-S&P 500, Nasdaq turn positive amid mixed coronavirus news

Published 13/02/2020, 20:35
© Reuters.  US STOCKS-S&P 500, Nasdaq turn positive amid mixed coronavirus news
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(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window.)

* Cisco weighs on Dow after lackluster forecast

* Kraft Heinz falls on $666 mln charge, sales miss

* China coronavirus deaths surge, but spread outside China

"not

dramatic" - WHO

* Indexes: Dow down 0.13%, S&P up 0.8%, Nasdaq up 0.12%

(Updates to late afternoon, changes dateline, byline)

By Stephen Culp

Feb 13 (Reuters) - The S&P 500 reversed its losses on

Thursday as investors weighed mixed news on the coronavirus and

a spate of corporate earnings.

While a drop in Cisco Systems Inc CSCO.O shares helped

keep the blue-chip Dow .DJI in the red, the S&P 500 .SPX and

the Nasdaq .IXIC rebounded and were both on track to eke out

their fourth consecutive record closing highs.

Hopes that the coronavirus epidemic could be on the wane

were soured by a spike in fatalities, with an additional 242

bringing China's coronavirus death toll to 1,367. The news caused a broad sell-off in global markets in a

crisis that has resulted in quarantines, supply line disruptions

and factory closings.

Still, there were glimmers of optimism as the director of

the World Health Organization (WHO) told a news briefing that

"we are not seeing dramatic increases in cases outside China."

"(Investors are) looking at cross-currents and trying to

figure out which is more important," said Chuck Carlson, chief

executive officer at Horizon Investment Services in Hammond,

Indiana. "The fact that the Fed is willing to stay the course

offsets the coronavirus issue."

Indeed, in his economic report to Congress earlier this

week, U.S. Federal Reserve Chair Jerome Powell said the central

bank was assessing the risk of the coronavirus and other

potential threats, indicating any change to its accommodative

policy was unlikely this year.

The Dow Jones Industrial Average .DJI fell 54.33 points,

or 0.18%, to 29,497.09, the S&P 500 .SPX gained 2.89 points,

or 0.09%, to 3,382.34 and the Nasdaq Composite .IXIC added

14.34 points, or 0.15%, to 9,740.30.

Of the 11 major sectors in the S&P 500, seven were trading

in the black, led by defensive utilities .SPLRCU and consumer

staples .SPLRCS .

Energy .SPNY stocks suffered the largest percentage loss.

The fourth-quarter reporting season is nearing its final

approach, with 378 companies in the S&P 500 having posted

results. Of those, 71.2% have surprised consensus estimates to

the upside, according to Refinitiv data.

Analysts now see aggregate fourth-quarter earnings

increasing at a 2.5% annual rate, a stark reversal from the 0.3%

decline seen at the beginning of the year.

Cisco Systems dropped 5.0% after providing lackluster

forward revenue and profit guidance on its quarterly earnings

call.

Tesla Inc TSLA.O rose 5.6% following its announcement that

it intends to raise $2 billion in a stock offering. Alibaba Group BABA.N warned that the coronavirus sweeping

China would hurt its revenues. The e-commerce company's shares

were down 1.2%. American International Group Inc AIG.N fell 4.1% despite

reporting better-than-expected quarterly profit on stronger

underwriting in its general insurance unit. Shares of Kraft Heinz Co KHC.O plunged 7.7% after the

packaged food company missed quarterly sales expectations and

took a $666 million charge. NetApp Inc NTAP.O fell about 10.4% following the data

storage equipment maker's current-quarter profit forecast miss.

Advancing issues outnumbered declining ones on the NYSE by a

1.03-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored advancers.

The S&P 500 posted 59 new 52-week highs and 3 new lows; the

Nasdaq Composite recorded 132 new highs and 51 new lows.

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