US STOCKS-Wall St jumps after Monday's historic sell-off as Fed boosts liquidity to fight coronavirus effect

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* Fed to buy debt directly from companies
* Defensive utilities, consumer staples help lead S&P 500
* Indexes up: Dow 5.2%, S&P 500 6%, Nasdaq 6.2%

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By Caroline Valetkevitch
NEW YORK, March 17 (Reuters) - The S&P 500 rose 6% on
Tuesday, clawing back a significant portion of Monday's steep
losses, as the Federal Reserve and the White House took further
steps to boost liquidity and stem damage from the coronavirus
outbreak that has gripped the global economy.
The U.S. central bank relaunched a financial crisis-era
purchase of short-term corporate debt to help companies be able
to continue paying workers and buy supplies through the
pandemic. The move to buy back commercial paper followed several
emergency measures taken by the Fed on Sunday, including
slashing interest rates to near zero.
Also on Tuesday, the Trump administration pursued an $850
billion stimulus package to buttress the economy and mulled
sending Americans $1,000 checks within two weeks. "This issue about liquidity has been a concern, and that's
what they're trying to alleviate," said Stephen Dover, head of
equities at Franklin Templeton.
"That said, what is as big a factor is that since this is a
consumer-driven slowdown, you have to have fiscal stimulus...
and we're seeing around the world very large fiscal stimulus, so
that's a lot of what is affecting the market now."
The pandemic is causing severe business and travel
disruptions across the globe as people stay home and avoid their
usual activities. Many companies have warned of lower revenue,
and most market watchers are bracing for a U.S. recession.
With the day's bounce, the market has retraced only part of
its recent losses. The S&P 500, which on Monday fell 12% in its
biggest one-day decline since the 1987 Black Monday crash, is
still down 25.3% from its Feb. 19 record closing high, and many
market-watchers see more volatility ahead.
"We're far from out of the woods. We haven't had
back-to-back positive days for two weeks," said Michael James,
managing director of equity trading at Wedbush Securities.
The Dow Jones Industrial Average .DJI rose 1,048.86
points, or 5.2%, to 21,237.38, the S&P 500 .SPX gained 143.06
points, or 6.00%, to 2,529.19 and the Nasdaq Composite .IXIC
added 430.19 points, or 6.23%, to 7,334.78.
So far though, many of the measures announced by
policymakers and the government have not been able to stem the
recent sell-off in stocks for long.
Monday's drop was the S&P 500's third-biggest daily
percentage drop, beaten only by the 1987 rout and the Great
Depression crash in 1929.
Some of the biggest decliners in the S&P 500 in the last
month include cruise operators like Norwegian Cruise Line
Holdings NCLH.N , hotels such as MGM Resorts MGM.N , clothing
companies like Capri Holdings CPRI.N and department stores,
including Macy's M.N .
Another company that has suffered sharp losses is Boeing Co
BA.N . Its shares tumbled again on Tuesday following a rating
downgrade that reflected its worsening cash flow due to the
extended grounding of its 737 MAX jet and the blow from the
coronavirus pandemic.
Equity investors were playing it somewhat safe on Tuesday,
giving the biggest boosts to so-called defensive sectors known
for reliable dividends. Among the S&P's 11 major industry
sectors, utilities .SPLRCU was the biggest percentage gainer,
adding 13%, followed by consumer staples .SPLRCS , which rose
8.4%.
Growth sectors also got some attention, with technology
.SPLRCT climbing 6.8% a day after its record daily percentage
decline.
Healthcare stocks were another bright spot. Pfizer Inc
PFE.N gained 6.6% after signing a deal with Germany's BioNTech
SE 22UAy.F to co-develop a potential coronavirus vaccine.
Regeneron Pharmaceuticals Inc REGN.O jumped 11.5% after
the company said it had identified antibodies that could
potentially treat COVID-19.
Advancing issues outnumbered declining ones on the NYSE by a
1.44-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored advancers.
The S&P 500 posted seven new 52-week highs and 209 new lows;
the Nasdaq Composite recorded seven new highs and 876 new lows.
On U.S. exchanges, 16.9 billion shares changed hands
compared with the 13.98 billion average for the last 20
sessions.
Investors cited potential problems in reducing trading hours
after U.S. Treasury Secretary Steven Mnuchin said at a news
conference that the Trump administration intends to keep markets
open but that shortened trading hours may be needed at some
point.