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US STOCKS-Wall St reaches new highs as China moves to limit coronavirus impact

Published 06/02/2020, 22:29
Updated 06/02/2020, 22:37
© Reuters.  US STOCKS-Wall St reaches new highs as China moves to limit coronavirus impact
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(For a live blog on the U.S. stock market, click LIVE/ or

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* China to halve extra tariffs on some U.S. imports

* U.S. weekly jobless claims hit nine-month low

* Becton Dickinson tumbles after forecast cut

* Twitter advances as quarterly revenue tops $1 bln

* Indexes up: Dow 0.3%, S&P 0.33%, Nasdaq 0.67%

(Updates to close of U.S. market)

By Lewis Krauskopf

Feb 6 (Reuters) - U.S. stocks gained for a fourth straight

session on Thursday and Wall Street's main indexes hit record

highs as concerns eased over the economic fallout from the

coronavirus outbreak in China.

China said it would halve additional tariffs levied against

some U.S. goods, seen by analysts as a move to boost confidence

after the fast-spreading coronavirus disrupted businesses and

sparked broad market volatility. “The one primary thing that everyone has been listening to

and watching and seeing how it moves the market has been the

coronavirus," said Jonathan Corpina, senior managing partner for

Meridian Equity Partners in New York. "The headlines have been

somewhat neutral lately, and that has been acceptable for the

markets.”

Adding to the optimism for stocks were data showing that the

number of Americans filing for unemployment benefits dropped to

a nine-month low last week, with investors casting an eye toward

Friday's monthly U.S. employment report. The Dow Jones Industrial Average .DJI rose 88.92 points,

or 0.3%, to 29,379.77, the S&P 500 .SPX gained 11.09 points,

or 0.33%, to 3,345.78 and the Nasdaq Composite .IXIC added

63.47 points, or 0.67%, to 9,572.15.

Among S&P 500 sectors, communication services .SPLRCL and

technology .SPLRCT led the way, while energy .SPNY fell the

most.

Even with optimism about containing the broad economic

damage from the coronavirus, the impact of the health emergency

in China continued to show up in corporate reports. Chipmaker

Qualcomm Inc QCOM.O flagged a potential threat to the mobile

phone industry from the outbreak. Its shares fell 0.3%.

Investors were also digesting the acquittal on Wednesday of

U.S. President Donald Trump on impeachment charges. "The outcome was fairly well telegraphed and I think widely

believed, but it ends the chapter for now and I think that is a

modest positive for investor sentiment,” said James Ragan,

director of wealth management research at D.A. Davidson in

Seattle.

With the fourth-quarter corporate reporting season more than

halfway completed, S&P 500 companies are expected to have

increased earnings by 2.1% for the period, according to IBES

data from Refinitiv.

In earnings news, Becton Dickinson and Co BDX.N shares

slid 11.8%, contributing the biggest drag on the S&P 500, after

the medical technology company cut its 2020 forecast.

Kellogg K.N shares slumped 8.5% after the breakfast cereal

maker forecast full-year earnings that widely missed market

expectations. Twitter shares TWTR.N soared 15.0% after the social media

company reported $1 billion in quarterly revenue for the first

time. Philip Morris International shares PM.N rose 2.7% after

the tobacco company released results. Advancing issues outnumbered declining ones on the NYSE by a

1.07-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored decliners.

The S&P 500 posted 62 new 52-week highs and no new lows; the

Nasdaq Composite recorded 122 new highs and 41 new lows.

About 7.3 billion shares changed hands in U.S. exchanges,

below the 7.7 billion daily average over the last 20 sessions.

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