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US STOCKS-Wall St slides on coronavirus fears, Intel offers support

Published 24/01/2020, 19:17
© Reuters.  US STOCKS-Wall St slides on coronavirus fears, Intel offers support
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Intel jumps 8% after strong forecast

* Energy, healthcare, financial stocks slide the most

* Officials confirm second U.S. case of coronavirus

* Indexes down: Dow 0.44%, S&P 0.65%, Nasdaq 0.52%

(Updates to early afternoon)

By Sruthi Shankar

Jan 24 (Reuters) - U.S. stocks fell on Friday, as investors

were cautious heading into the weekend amid renewed concerns

over the fallout of a coronavirus outbreak from China.

Intel Corp INTC.O stood out with an 8.4% gain after the

chipmaker forecast better-than-expected 2020 earnings, joining

many of its peers to signal a recovery in chip demand.

After a record open for the Nasdaq, Wall Street's main

indexes lost ground as U.S. health officials confirmed a second

U.S. case of the coronavirus in a Chicago woman and said as many

as 63 potential cases were being investigated. That added to nerves after the outbreak in China killed 26

people and infected more than 800 in the past week, raising

concerns about its fallout on the global economy. "It's been a headline risk for the market," said Quincy

Krosby, chief market strategist at Prudential Financial.

"The question becomes whether or not this continues to

spread quickly. The other issue is it's a Friday. Do investors

want to go long into the weekend or do they want to take some

profits? Because the virus is not going to recede."

Airlines and casino stocks fell again, with United Airlines

Holdings Inc UAL.O and American Airlines Group Inc AAL.O

shedding about 4%. Wynn Resorts Ltd WYNN.O and Melco Resorts &

Entertainment Ltd MLCO.O fell about 3%.

Big banks including JPMorgan Chase & Co JPM.N and Bank of

America Corp BAC.N fell more than 1.5%, tracking a drop in

U.S. Treasury yields. US/

At 12:56 p.m. ET, the Dow Jones Industrial Average .DJI

was down 0.44% at 29,032.89. The S&P 500 .SPX fell 0.65% to

3,303.91 and the Nasdaq Composite .IXIC dropped 0.52% to

9,353.15.

All three indexes were on track for their worst weekly

declines since September, with quarterly earnings reports coming

largely in-line with expectations.

Analysts expect earnings at S&P 500 companies to drop 0.5%

in the fourth quarter, according to Refinitiv IBES data.

American Express Co AXP.N rose 2.7% after reporting a

better-than-expected quarterly profit as more people used its

credit cards. Healthcare stocks .SPXHC fell 1.5%, dragged down by

Bristol-Myers Squibb Co BMY.N and Amgen Inc AMGN.O .

Energy stocks .SPNY dropped 1.4%, hit by weaker oil prices

on concerns that the coronavirus outbreak would curb travel and

oil demand. O/R

Declining issues outnumbered advancers for a 2.21-to-1

ratio on the NYSE and a 2.60-to-1 ratio on the Nasdaq.

The S&P index recorded 84 new 52-week highs and three new

lows, while the Nasdaq recorded 110 new highs and 44 new lows.

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