* Apple, Boeing keep Dow in positive territory
* Starbucks slips as coronavirus prompts store closures in
China
* Fed expected to hold rates, statement due at 2:00 pm ET
* Indexes up: Dow 0.31%, S&P 0.11%, Nasdaq 0.06%
(Updates to open)
By Sruthi Shankar and Ambar Warrick
Jan 29 (Reuters) - U.S. stock indexes retreated from early
highs on Wednesday as a spate of disappointing earnings reports
offset strong gains in Apple and Boeing, while investors
assessed the economic impact of the fast-spreading coronavirus
outbreak.
Several companies warned of disruption to their operations
due to the virus outbreak, while a Chinese government economist
was also quoted as saying the country's economic growth may drop
to 5% or even lower. Starbucks Corp SBUX.O dropped 2.9% after warning of a
financial hit as it closed thousands of restaurants and adjusted
operating hours in China. American Airlines Group Inc AAL.O and United Airlines
Holdings Inc UAL.O said they were canceling some flights to
China, while Royal Caribbean Cruises Ltd RCL.N said its 2020
earnings would be hurt after it canceled three trips of its
China-based cruise liner. "The market remains a bit uneasy about the situation in
China," said Rick Meckler, partner, Cherry Lane Investments, a
family investment office in New Vernon, New Jersey.
"There's still a feeling that as good as things have been up
till now, you could see problems in China lead to a slowing in
the next quarter."
The indexes opened up about 0.4%, but the gains quickly
evaporated as shares in AT&T T.N , Advanced Micro Devices Inc
AMD.O and Anthem Inc ANTM.N fell following their results.
Apple Inc AAPL.O , however, gained 2.3% after reporting
earnings for the holiday shopping quarter above analysts'
expectations, even as it braced for more supply disruptions in
virus-hit China. Boeing Co BA.N jumped 2.4% after the planemaker's forecast
of nearly $19 billion in costs related to the grounding of its
737 MAX jets was smaller than analysts' expectations.
At 10:32 a.m. ET, the Dow Jones Industrial Average .DJI
was up 0.31%, at 28,811.23.
The S&P 500 .SPX rose 0.11%, at 3,279.91 and the Nasdaq
Composite .IXIC gained just 0.06%, at 9,275.54.
Investors were also on the sidelines ahead of the Federal
Reserve's statement later in the day from its policy meeting.
Interest rates will almost certainly remain on hold.
Advanced Micro Devices Inc AMD.O dropped 7% after the
chipmaker forecast first-quarter revenue largely below analysts'
estimates due to waning demand from gaming console makers.
AT&T Inc T.N fell 2.4% after it missed fourth-quarter
revenue estimates, while Anthem Inc ANTM.N dropped 5.6% after
the health insurer missed estimates for medical costs in the
fourth quarter. General Electric GE.N jumped 10% after the industrial
conglomerate reported quarterly profit and cash flow that
exceeded analysts' estimates, boosted by its aviation
unit. Advancing issues outnumbered decliners by a 1.26-to-1 ratio
on the NYSE. Declining issues outnumbered advancers for a
1.14-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and four new
lows, while the Nasdaq recorded 54 new highs and 32 new lows.