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US STOCKS-Wall Street recovery continues on China stimulus measures

Published 04/02/2020, 16:08
Updated 04/02/2020, 16:09
© Reuters.  US STOCKS-Wall Street recovery continues on China stimulus measures
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Indexes up: Dow 1.57%, S&P 1.42%, Nasdaq 1.49%

* Ralph Lauren climbs after profit beat

* Tesla shares top $900 for the first time

* Alphabet slips as Google's ad business disappoints

(Updates to open)

By Medha Singh

Feb 4 (Reuters) - Gains in technology heavyweights helped

Wall Street's main indexes climb for the second day on Tuesday,

with fresh intervention by China's central bank calming investor

nerves.

China injected 1.7 trillion yuan ($242.74 billion) via

reverse repos on Monday and Tuesday, helping Chinese stocks

reverse some losses and lifting the world equity index

.MIWD00000PUS . The stimulus boosted investor sentiment even as several

economists cut their forecasts for 2020 global growth as the

fast-spreading virus has hampered business operations in the

world's second largest economy. "Investors seem to be reacting positively to the steps

currently being taken by Chinese authorities," said Art Hogan,

chief market strategist at National Securities in New York.

"Whether the virus has a lasting impact on the broader

global economy depends largely on the ability of the world's

major governments to effectively deploy resources to contain the

outbreak."

Nine of the 11 major S&P sectors were higher, led by a 1.7%

rise in energy stocks .SPNY as oil prices rebounded.

A more than 1.5% rise in shares of Apple Inc AAPL.O and

Microsoft Corp MSFT.O helped the technology .SPLRCT index

climb 1.8%.

But Alphabet Inc GOOGL.O slipped 3.4% after Google's

advertising business and new data about YouTube and Google Cloud

broadly disappointed. At 9:49 a.m. ET the Dow Jones Industrial Average .DJI was

up 444.78 points, or 1.57 percent, at 28,844.59, the S&P 500

.SPX was up 46.03 points, or 1.42 percent, at 3,294.95 and the

Nasdaq Composite .IXIC was up 137.94 points, or 1.49 percent,

at 9,411.34.

U.S. stocks rebounded on Monday, supported by a surprise

expansion in domestic factory activity following the S&P 500's

.SPX worst weekly decline in six months. Fears about the economic impact of the coronavirus outbreak

have overshadowed a largely positive fourth-quarter earnings

season. About 70% of nearly half of the S&P 500 companies that

have reported so far have surpassed earnings estimates.

Ralph Lauren Corp RL.N jumped 6.4% after the retailer's

holiday-quarter profit beat market expectations. Health insurer Centene Corp CNC.N slipped about 0.5%,

weighed down by a surge in quarterly medical costs. Investors were also eyeing the U.S. Democratic presidential

nominating race that got off to a chaotic start on Monday, with

officials blaming "inconsistencies" for an indefinite delay in

the state's caucus results. Advancing issues outnumbered decliners by a 4.63-to-1 ratio

on the NYSE and by a 4.71-to-1 ratio on the Nasdaq.

The S&P index recorded 43 new 52-week highs and two new

lows, while the Nasdaq recorded 71 new highs and 14 new lows.

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