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* Apple slips as China business shutdown threatens demand
* Tesla jumps after Shanghai factory resumes production
* Indexes up: Dow 0.18%, S&P 0.18%, Nasdaq 0.36%
(Updates to open)
By Medha Singh
Feb 10 (Reuters) - U.S. stocks ticked higher on Monday, as
people returned to work in China after an extended new year
holiday triggered by the coronavirus outbreak but sentiment
remained fragile.
Electric carmaker Tesla Inc TSLA.O jumped 6.3% as its
Shanghai factory returned to service. On the other hand, Apple Inc AAPL.O slipped 0.6%, the
biggest drag on the three main indexes, as analysts predicted
China's smartphone sales may plunge by as much as 50% in the
first quarter due to store closures and production suspensions
following the outbreak. "Investors are quiet worried about the overly negative
impact of the coronavirus on the global economy," said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
The death toll from the epidemic has surpassed that of
Severe Acute Respiratory Syndrome (SARS) from 2002-2003, with
the World Health Organization warning that the number of latest
coronavirus cases outside China could be just "the tip of the
iceberg". At 10:01 a.m. ET, the Dow Jones Industrial Average .DJI
was up 52.49 points, or 0.18%, at 29,155.00 and the S&P 500
.SPX was up 6.05 points, or 0.18%, at 3,333.76. The Nasdaq
Composite .IXIC was up 33.97 points, or 0.36%, at 9,554.48.
Wall Street's main indexes slipped from record highs on
Friday, but still the S&P 500 .SPX posted its best week in
eight months following China's efforts to limit the impact of
the virus.
Amazon.com AMZN.O gained 2%, helping the consumer
discretionary .SPLRCD firm 0.9%, the most among main S&P
sectors.
L Brands Inc LB.N rose 2.5% after a report the retailer
was nearing a deal to sell Victoria's Secret to Sycamore
Partners. Eli Lilly LLY.N dropped 2.5% after experimental drugs from
the U.S. pharmaceutical firm and Switzerland's Roche ROG.S
failed to halt Alzheimer's disease. Shopping centers owner Taubman Centers Inc TCO.N surged
53.2% as it agreed to be bought by larger peer Simon Property
Group Inc SPG.N in a deal valued at $3.6 billion. Other U.S. mall owners Tanger Factory Outlet Centers Inc
SKT.N and Macerich Co MAC.N gained 1.3% and 8%,
respectively.
Markets on Monday will also watch for U.S. President Donald
Trump's $4.8-trillion budget proposal for fiscal year 2021, and
Fed Chair Jerome Powell's two-day address to the U.S. Congress,
starting Tuesday.
Advancing issues outnumbered decliners by a 1.05-to-1 ratio
on the NYSE and by a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 22 new 52-week highs and two new
lows, while the Nasdaq recorded 39 new highs and 47 new lows.