NEW YORK (AP) —
Stocks fell slightly in early trading Friday as a blowout earnings
report from chipmaker Intel propelled technology shares higher and
offset declines in health care and financial companies.
technology sector was givenaaaa an additional boost from Broadcom,
which landed a deal to supply wireless components to Apple.
Wall Street is still assessing the extent of the threat that a deadly new virus that originated in China poses to the global economy. Those fears continue to hang over global markets as health authorities worldwide take measures to contain and monitor the coronavirus outbreak.
Other than technology, sectors in the S&P 500 fell or were little changed.
Health care companies broadly slipped. Surgical robot maker Intuitive Surgical shed 3.9%.
Financial stocks also fared poorly. Discover Financial plunged 10.3%.
Oil prices slid and dragged down energy stocks. Concho Resources fell 2.8%.
The yield on the 10-year Treasury fell to 1.70% from 1.74% late Thursday.
SCORE: The S&P 500 index fell 0.2% as of 10:45 a.m. Eastern time.
The Dow Jones Industrial Average slipped 33 points, or 0.1%, to 29,128.
The Nasdaq fell less than 0.1%. The Russell 2000 index of smaller
company stocks fell slightly.
European markets made solid gains, helped by a report that showed
improvement in manufacturing activity. Germany’s DAX jumped 1.4% and
the CAC 40 in France rose 1.1%
were closed in Shanghai and the rest of mainland China, South Korea,
Malaysia and Taiwan. Japan’s Nikkei and Hong Kong’s Hang Seng edged
STATUS: The coronavirus has been confirmed in five countries, including
China, the U.S., Thailand, Japan and South Korea. More than 500 people
have fallen sick and 26 have died from the illness, which can cause
pneumonia and other severe respiratory symptoms. The World Health
Organization has so far held off on declaring the situation a global
emergency, which would bring more money and resources to fight it, but
could trigger economically damaging restrictions on trade and travel.
LEAD THE WAY: Intel surged 7.6% after the chipmaker blew past Wall
Street’s fourth-quarter profit forecasts. The company cited demand for
cloud-computing as the key reason for the solid financial results.
company gave investors an upbeat forecast for the first quarter, which
helped inject confidence into the broader market for chips. Nvidia rose
1.2% and Advanced Micro Devices rose 1.4%.
INTO APPLE: Broadcom jumped 2.7% after signing supply deals with Apple
that could bring in up to $15 billion in revenue. The chipmaker said it
will supply wireless components to the iPhone maker.