Wall Street close: Stocks bounce back, recovering from the flu
- Subsequently, the Dow Jones Industrial Average, or DJIA, added 186 points, or 0.7%, to 28,722.
- The S&P 500 index climbed 1% to 3,276.
- The Nasdaq Composite Index added 1.4% to close at 9,269.
US stocks bounced on the day and benchmarks recovered some ground lost to the coronavirus scare on some less negative sentiment whereby, according to the People's Daily China and the Xinhua, "The novel coronavirus outbreak may reach its peak in one week or around 10 days, and then there will be no large-scale increases, says Zhong Nanshan, a renowned Chinese respiratory expert." At the same time, there were solid data outcomes in US data.
Subsequently, the Dow Jones Industrial Average, or DJIA, added 186 points, or 0.7%, to 28,722, halting a 5-session slide. The S&P 500 index climbed 1% to 3,276, while the Nasdaq Composite Index added 1.4% to close at 9,269.
In corporate news, EBAY was down 3% after earnings, we will also have Apple Inc. AAPL, reporting in the near future with a focus on the iPhone maker's output due to the coronavirus.
Risk markets have steadied as confidence rose despite the worsening environment and worrying statistics, steps are being made to contain the fallout from the coronavirus. Also, the US data flow surprised on the upside. We had the US manufacturing sector in focus with poised a headline durable goods order adding 2.4% MoM in December. We also had the US consumer confidence climbing 3.4pts to 131.6 in January, "mirroring the recent wave of positive data flow for the US household sector including the lowest unemployment rate since 1969, the longest expansion on record, low inflation and close to record-high levels of job vacancies," as analysts at ANZ Bank explained.
"These real developments are combining with extremely positive wealth effects and low debt servicing costs. Household balance sheets are strong and rising so there is little reason to expect consumpt