US STOCKS-Wall St eyes strong open as China stimulus calms investor nerves

Published 04/02/2020, 15:13
Updated 04/02/2020, 15:18
© Reuters.  US STOCKS-Wall St eyes strong open as China stimulus calms investor nerves

(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures up: Dow 1.32%, S&P 1.31%, Nasdaq 1.56%

* Ralph Lauren climbs after profit beat

* Tesla shares top $900 for the first time

* Alphabet slips as Google's ad business disappoints

(Adds quote, details; updates prices)

By Medha Singh

Feb 4 (Reuters) - Wall Street's main indexes were set to

open sharply higher on Tuesday, marking a second day of recovery

from a coronavirus-driven sellfoff last week, with fresh

intervention by China's central bank calming investor nerves.

In a bid to cushion the economic blow of the epidemic, China

injected 1.7 trillion yuan ($242.74 billion) via reverse repos

on Monday and Tuesday, helping Chinese stocks reverse some

losses and lifting the world equity index .MIWD00000PUS .

The monetary intervention boosted investor sentiment even as

several economists cut their forecasts for 2020 global growth,

with the spread of coronavirus showing no signs of slowing. The

death toll from the outbreak has surpassed 420, with businesses

suspending their operations in China. "Investors seem to be reacting positively to the steps

currently being taken by Chinese authorities," said Art Hogan,

chief market strategist at National Securities in New York.

"Whether the virus has a lasting impact on the broader

global economy depends largely on the ability of the world's

major governments to effectively deploy resources to contain the

outbreak."

Of the 30 Dow-listed industrial components .DJI , 28 were

trading higher, led by a more than 2% gain for technology

behemoths Intel Corp INTC.O and Apple Inc AAPL.O .

But Alphabet Inc's GOOGL.O shares slipped 4% after

Google's advertising business and new data about YouTube and

Google Cloud broadly disappointed. At 8:50 a.m. ET, Dow e-minis 1YMcv1 were up 374 points, or

1.32%. S&P 500 e-minis EScv1 were up 42.5 points, or 1.31% and

Nasdaq 100 e-minis NQcv1 were up 141.75 points, or 1.56%.

U.S. stocks rebounded on Monday, supported by a surprise

expansion in domestic factory activity following the S&P 500's

.SPX worst weekly decline in six months. Fears about the coronavirus outbreak have overshadowed a

largely positive fourth-quarter earnings season. About 70% of

nearly half of the S&P 500 companies that have reported so far

have surpassed earnings estimates.

Ralph Lauren Corp RL.N jumped 6.8% after the retailer's

holiday-quarter profit beat market expectations. Health insurer Centene Corp CNC.N slipped about 4%,

weighed down by a surge in quarterly medical costs. Tesla Inc TSLA.O jumped 12.8%, building on a near 20%

surge on Monday. Billionaire investor Ron Baron said the

electric carmaker's revenue will be more than $1 trillion in 10

years. Investors were also eyeing the U.S. Democratic presidential

nominating race that got off to a chaotic start on Monday, with

officials blaming "inconsistencies" for an indefinite delay in

the state's caucus results. In economic news, data at 10 a.m. ET is likely to show U.S.

factory orders rose 1.2% in December after a 0.7% slip in the

prior month.

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