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* Biden jumps to front of the Democratic pack
* Healthcare biggest gainer among S&P 500 sectors
* Indexes up: Dow 3.16%, S&P 2.86%, Nasdaq 2.59%
(Updates to late afternoon, changes dateline, byline)
By Stephen Culp
NEW YORK, March 4 (Reuters) - Wall Street surged on
Wednesday as former Vice President Joe Biden's strong showing in
the "Super Tuesday" primary contests gave a boost to healthcare
stocks and upbeat economic data helped sooth investors'
coronavirus anxieties.
All three major U.S. stock averages were at least 2.5%
higher, with the S&P 500 having regained about 4.5% from
Friday's closing trough, but still about 8.8% below its all-time
high reached on Feb 19.
Since then, the markets dove into a correction as the
fast-spreading COVID-19 sparked widespread recession fears.
Former Vice President Joe Biden emerged as the front-runner
for the Democratic presidential nomination following a string of
primary victories, providing relief to market participants who
are wary of rival Bernie Sanders' more progressive policy
positions. "Today, clearly this is a Biden surge and maybe a bit of an
opportunity to play a bounce given what happened in the markets
yesterday," said Chuck Carlson, chief executive officer at
Horizon Investment Services in Hammond, Indiana.
This, after the U.S. Federal Reserve's surprise 50 basis
point interest rate cut to head off potential economic damage
caused by the coronavirus, which has grown to 93,000 confirmed
cases worldwide and rattled global markets. "There may be a re-examination going on today," Carlson
added. "At least the Fed is indicating that they're being
supportive."
But Carlson noted the coronavirus is likely remain an
overhang through the first half of the year. "Markets don't like
uncertainties and this is about as uncertain a situation as I've
seen in some time," he said.
On the economic front, data showed stronger-than-expected
private sector hiring, and the services sector expanding at its
fastest pace in a year, according to reports from ADP and the
Institute for Supply Management, respectively.
Additionally, the Mortgage Bankers Association reported that
the average 30-year fixed contract mortgage rate fell last week
to a seven-year low.
The Dow Jones Industrial Average .DJI rose 818.85 points,
or 3.16%, to 26,736.26, the S&P 500 .SPX gained 85.86 points,
or 2.86%, to 3,089.23 and the Nasdaq Composite .IXIC added
224.57 points, or 2.59%, to 8,908.66.
All of the 11 major sectors in the S&P 500 were firmly in
the black, led by a 4.5% jump in healthcare .SPXHC stocks.
Fourth-quarter earnings season is crossing the finish line,
with 488 S&P 500 companies having reported. Of those, 70.1% have
beaten consensus estimates, according to Refinitiv data.
Dollar Tree Inc DLTR.O forecast underwhelming
first-quarter sales and profit, sending the discount retailer's
shares down 3.3%. Among apparel retailers, Abercrombie & Fitch Co ANF.N
jumped 9.3% after beating quarterly sales and profit estimates.
But Nordstrom JWN.N forecast 2020 profit below analyst
estimates, sending its shares down 3.2%. Campbell Soup Co's CPB.N beat-and-raise earnings report
gave a 7.3% boost to its shares. Advancing issues outnumbered declining ones on the NYSE by a
3.98-to-1 ratio; on Nasdaq, a 2.95-to-1 ratio favored advancers.
The S&P 500 posted 4 new 52-week highs and 31 new lows; the
Nasdaq Composite recorded 33 new highs and 115 new lows.