Wall Street rises at open after steep selloff

Andrew Cummings
February 4, 2020

The S&P 500 gained 23.4 points, or 0.73%, to 3,248.92 and the Nasdaq Composite added 122.47 points, or 1.34%, to 9,273.40.

In the US, an early look at the S&P 500 sectors shows communication services (+1.2%) and consumer discretionary (+1.2%) with strong early gains, while energy (-0.9%) is the lone group trading lower as crude oil continues to decline; WTI March crude -1.1% to $50.97/bbl.

"Investors are looking beyond the potential negative impacts of the coronavirus", said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. The Shanghai Composite was up 5.8 points at 2,752.44.

Travel and airline stocks led the way lower for the broader market last week, with Carnival and Norwegian Cruise Line among the hardest hit.

The Dow Jones Industrial Average rose 365 points, or 1.29 per cent, to 28,621.18 as of around 10:30am local time in NY. "We pumped so much liquidity into the economy past year, and now the yield curve is inverting again?"

Gold fell more than 1%, retreating from a four-week high, as China's efforts to protect its economy from the virus and the injection of 1.2 trillion yuan ($174 billion) worth of liquidity into the markets helped stem inflows into safe-haven assets. An albeit imperfect rule of thumb says a recession may be a year or so away when the three-month Treasury's yield is higher than a 10-year Treasury's.

Benchmark 10-year notes last fell 2/32 in price to lift their yield to 1.5238%.

US stock index futures climbed on Monday, following steep declines in the previous session, as China took steps to relieve pressure on its economy from the impact of the coronavirus epidemic. "We don't have the all-clear yet", Lerner said.

Shares of Google parent Alphabet Inc gained 3.5 per cent ahead of the company's quarterly results.

The Iowa caucuses are Monday, the first contest to choose a Democratic nominee to run against Donald Trump in November. The 30-stock Dow was up more than 350 points at its high of the day.

The outbreak is threatening China's economy as much of the nation shuts down.

Investors were eyeing a busy USA political week. Almost 18% of its revenue last quarter came from China. The euro likewise was nearly unchanged, at $1.1060.

Overall, stocks have given up some ground after a strong start to the year amid uncertainty over the virus outbreak.

Futures on Brent crude, the global oil benchmark, tumbled 3.9% and were also on track to enter a bear market, defined as a fall of more than 20% from a recent peak. West Texas Intermediate crude-oil futures fell 2.8% to $50.11 a barrel, a drop of more than 20% from the January 6 level of $63.27. It fell $1.19 to settle at $52.14 a barrel on Thursday. It dropped $1.58 to close at $58.33 a barrel overnight.

The euro fell 0.33% to $1.1056, while the yen weakened 0.17% versus the greenback at 108.59 per dollar.

Other reports by iNewsToday