US STOCKS-Wall St slips as New York toughens up on coronavirus spread

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* Non-essential workers in New York asked to stay home
* Investors banking on more fiscal stimulus
* Battered airline stocks rebound
* Indexes off: Dow 1.18%, S&P 1.73%, Nasdaq 1.08%

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By Medha Singh and Sanjana Shivdas
March 20 (Reuters) - Wall Street erased early gains to fall
1% on Friday, as the state of New York ordered all non-essential
workers to stay home to curtail the spread of the coronavirus
pandemic that has fueled the worst monthly rout in U.S. equities
in three decades.
California had earlier asked 40 million people to stay
indoors as the U.S. death toll from the outbreak topped 200
people. New York state also pleaded for more medical personnel and
supplies to treat the virus cases that could overwhelm
hospitals.
The Dow Jones and Nasdaq had eked out gains in early trading
as global policymakers turned on all the taps to prop up
financial markets after four weeks of steep declines ended a
record 11-year bull run for Wall Street.
The airlines sector .SPCOMAIR rose 2% after losing more
than half its value since late February.
Investors are now counting on further easing in the next few
days, as the Senate mulls a $1 trillion package that would
include direct financial help for Americans.
"I don't think we're out of the woods by any stretch," said
Lamar Villere, portfolio manager at Villere Balanced Fund.
"Most people haven't been tested yet for coronavirus so the
size of the spread is not known or understood. As that number
goes up there's the potential for more investor caution."
Fears over the severity of the outbreak have wiped off
nearly 30%, or more than $8 trillion, from the value of the
benchmark S&P index since its record closing high on Feb. 19.
Markets also face "quadruple witching" on Friday, where
investors unwind positions in futures and options contracts
before their expiration.
A Reuters poll of economists suggested the global economy
was already in recession, while analysts at U.S. stock market
index operator S&P Global said volatility in financial markets
across geographies and asset classes was at record highs.
AT&T Inc T.N tumbled 6.4% as the wireless carrier warned
the outbreak might have a material impact on financial results
and canceled a $4 billion share repurchase agreement.
At 12:22 p.m. ET, the Dow Jones Industrial Average .DJI
was down 237.65 points, or 1.18%, at 19,849.54, the S&P 500
.SPX was down 41.80 points, or 1.73%, at 2,367.59. The Nasdaq
Composite .IXIC was down 76.97 points, or 1.08%, at 7,073.61.
Nine of the 11 major S&P sectors were trading lower, with
communications .SPLRCL and utilities .SPLRCU stocks leading
the declines.
The energy sector .SPNY still rose 0.2%, rebounding from
its lowest levels in nearly two decades, even as oil prices
weakened. O/R
Advancing issues almost matched decliners 1-to-1 on the NYSE
and the Nasdaq.
The S&P index recorded no new 52-week high and 40 new lows,
while the Nasdaq logged three new highs and 95 new lows.