U.S.equity markets rebounded on Tuesday, recouping from a major selloff in the previous session, as investors looked past the continued spreading of thecoronavirusoutbreak in China and focused back on the U.S. and the rollout of corporate earnings as well as a strong read on consumer confidence.
The S&P 500 and the Nasdaq rose 1-percent while the Dow Jones Industrials tacked on slightly less with a point gain of 187.06.
|I:DJI||DOW JONES AVERAGES||28205.99||-786.42||-2.71%|
|I:COMP||NASDAQ COMPOSITE INDEX||9252.516645||-324.07||-3.38%|
Consumer confidencerebounded in January amid growing trust in the U.S. labor market’s strength. The Consumer Confidence Index climbed by 3.4 points to 131.6, according to a preliminary reading released Tuesday, after a slight fall in December.
As for earnings, Dow components United Technologies, 3M and Pfizer all reported results.
United Technologies reportedsales rose 16 percentyear over year in 2019 to a record of $77 billion.
Pfizer revenue slumped after the drugmaker lost exclusivity for its pain drug Lyrica, pushing sales in its Upjohn unit, which also includes Viagra, down by 32 percent to $2.16 billion.
And 3M’s fourth-quarter earnings fell short of Wall Street estimates and the conglomerate forecast 2020 profit below expectations due to weaker demand from China. The industrial giant also noted that it was seeing a demand for its protective face masks and will be ramping up global production due to the coronavirus.
|UTX||UNITED TECHNOLOGIES CORPORATION||147.85||-3.67||-2.42%|
China said on Tuesday that were4,515 confirmed casesof the virus. Almost all of the 106 deaths have been in Hubei province, where the outbreak began.
Airlines, cruise operators and casinos snapped back after suffering steep losses on Monday while drugmakers and medical mask makers gave up a large portion of their recent gains.
|AAL||AMERICAN AIRLINES GROUP INC.||25.21||-2.61||-9.38%|
|WYNN||WYNN RESORTS LIMITED||122.25||-5.70||-4.45%|
Elsewhere on the earnings front,Lockheed Martin delivered better-than-expected full-year resultsand raised its sales forecast.
Harley-Davidson’sU.S. vehicle sales fell 3.1 percentto 20,204 units, making for the smallest drop in 12 quarters. However, the company forecast 2020 motorcycle revenue of $4.53 billion to $4.66 billion, versus the $4.57 billion from 2019.
|LMT||LOCKHEED MARTIN CORPORATION||421.97||-5.83||-1.36%|
Beyond Meat slipped after J.P. Morgan Chase cut its outlook to “neutral,” saying the good news is already priced in.
|BYND||BEYOND MEAT INC.||110.77||-6.68||-5.69%|
Looking at commodities, West Texas Intermediate crude oil was on track for its first gain in six days, trading up near $53.59 a barrel, and gold was down 0.6 percent at $1,573 an ounce.
U.S. Treasurys slid, sending the yield on the 10-year note up by 3.6 basis points to 1.6491 percent.
In Europe, Britain’s FTSE and France’s CAC were both up 1 percent and Germany’s DAX was higher by 0.8 percent.
Overnight, Japan’s Nikkei shed 0.6 percent while China’s Shanghai Composite and Hong Kong’s Hang Seng remained closed in observance of the Lunar New Year.