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US STOCKS-Wall Street rebounds as tech, financials surge

Published 28/01/2020, 18:11
© Reuters.  US STOCKS-Wall Street rebounds as tech, financials surge
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* Apple jumps 2% ahead of earnings

* 3M slips on downbeat 2020 profit forecast

* U.S. consumer confidence rises in January

* Indexes up: Dow 0.81%, S&P 1.09%, Nasdaq 1.35%

(Changes comment, updates prices)

By Sruthi Shankar

Jan 28 (Reuters) - U.S. stocks rose on Tuesday as gains in

technology and financial sectors helped major indexes recover

from their worst selloff in about four months on worries over a

coronavirus outbreak and its impact on the global economy.

Markets across the world stabilized as the head of the World

Health Organization (WHO) said he was confident in China's

ability to contain the virus outbreak, which has killed 106

people in the country, prompted businesses to close operations

and curbed travel. The earnings season was gathering pace, with Apple Inc

AAPL.O set to report results after markets close. Its shares

rose 2.3%, recouping from a 3% drop on Monday amid a broader

market selloff.

Investors will keep a close watch on Apple's earnings amid

concerns of a disruption in iPhone production as the coronavirus

spreads across its major markets like China.

"We haven't seen the coronavirus massively spread and China

is doing everything they can to corral this virus," said Ryan

Detrick, senior market strategist for LPL Financial.

"Today is investors taking a look and realizing that

earnings season has been pretty good so far."

The S&P technology index .SPLRCT rose 1.8%, while

financial stocks .SPSY gained 1.4% as big banks rebounded.

Also helping the sentiment, a U.S. Conference Board consumer

confidence index rose to better-than-expected 131.6 points in

January. At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI

was up 0.81% at 28,766.10. The S&P 500 .SPX gained 1.09% to

3,278.85 and the Nasdaq Composite .IXIC rose 1.35% to

9,262.51.

Earnings are now expected to show a decline of 0.4% for the

fourth quarter, according to Refinitiv data. Of the 104

companies that have reported, 68.3% have topped expectations,

although lagging the average rate of 74% from the past four

quarters.

Results were mixed on Tuesday, with U.S. industrial giant 3M

Co MMM.N sliding 5.7% after it forecast 2020 profit below

expectations as it faced sluggish demand in Asia. Pfizer Inc PFE.N fell 3.9% after the drugmaker reported a

lower-than-expected quarterly profit and a decline in revenue as

sales of its off-patent pain treatment Lyrica more than halved.

Shares in Xerox Holdings Corp XRX.N jumped 5.4% after it

forecast 2020 profit above Wall Street expectations.

Advancing issues outnumbered decliners by a 2.83-to-1 ratio

on the NYSE and a 2.48-to-1 ratio on the Nasdaq.

The S&P index recorded 23 new 52-week highs and three new

lows, while the Nasdaq recorded 54 new highs and 29 new lows.

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