Stocks rally as China markets reopen, dollar gains

  • Stocks rally as China markets reopen, dollar gains

Stocks rally as China markets reopen, dollar gains

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.

Fourth-quarter earnings season is about halfway done, with 228 S&P 500 companies having reported and with earnings expected to have climbed 1.1% in the period, according to IBES data from Refinitiv.

"The shorter-term uncertainty around the coronavirus is really affecting everything", said JJ Kinahan, a chief market strategist at TD Ameritrade.

The Russell 2000 is down 36.26 points, or 2.2%. Taiwan's benchmark picked up 0.6 per cent, while South Korea's Kospi skidded 1.4 per cent to 2,119.01.

Some major companies have closed factories in central China, airlines have cancelled hundreds of flights and economists are cutting growth forecasts for the world's second-largest economy.

The Dow Jones Industrial Average rose 158 points, or 0.6%, in afternoon trading, reversing course from a sharp selloff last week. "We pumped so much liquidity into the economy past year, and now the yield curve is inverting again?"

On Tuesday, the three-month yield was at 1.55%, above the 1.54% yield of the 10-year, which itself rose from 1.51% late Friday.

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.

Britain's 10-year yield advanced one basis point to 0.529 per cent.

"We expect a tough talk in the opening rounds of the Brexit talks", Mr. Rochester said. But almost a quarter of the gain for the S&P 500 came from just two stocks: Microsoft and Google's parent company, Alphabet.

The Iowa caucuses are Monday, the first contest to choose a Democratic nominee to run against Donald Trump in November.Tuesday brings a policy decision from the Reserve Bank of Australia, and the Reserve Bank of India's interest rate decision is due Thursday.Friday has the USA employment report for January.

Nike jumped 3.9% to help drive Dow Jones Industrial Average higher as investors continue to try to handicap how much its earnings will be hurt by the virus.

While the S&P 500 Index bounced back from the worst week in six months, shares in Shanghai - which hadn't traded since holidays began January 23 - tumbled the most since 2015 as the nation's economy remained virtually shut down because of the virus.

Investors will also keep an eye on Iowa caucuses on Monday, the first nominating contest of the 2020 presidential election. Almost 18% of its revenue last quarter came from China. It had been above $63 toward the start of the year, before 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. It fell $1.19 to settle at $52.14 a barrel on Thursday.

Oil prices ditched $1.36 to $50.20 USA a barrel. It dropped $1.58 to close at $58.33 a barrel overnight.

The yen was at 108.62 per dollar.The offshore yuan fell 0.1% to 7.0185 per dollar.The euro traded flat at $1.1060.