US stock indexes rose 1.4-2.1%

UNITED STATES (OBSERVATORY NEWS) — US stock indexes closed trading on Tuesday with steady growth, investors evaluated the incentive measures taken by the Central Bank of China, and the impact of Beijing’s efforts to combat the effects of coronavirus on the economy.

In China, at 00:00 local time on Wednesday, the total number of patients with pneumonia caused by a new type of coronavirus was 24 324 people, fatalities were recorded in 490 cases, the State Committee of the PRC for Health said.

The People’s Bank of China (NBK, the country’s Central Bank) poured 500 billion yuan ($ 71.21 billion) into the financial system on Tuesday through reverse repos. The NBK offered the market 380 billion in 7-day reverse repos and 120 billion yuan in 14-day operations, the Chinese Central Bank said.

“As we can see from the example of many volatile shocks, as soon as the market stabilizes for whatever reason, for example, after central banks take measures to stabilize the economy, investors again have confidence to invest in risky assets,” says Acadian portfolio manager Asset Management Clifton Hill, quoted by MarketWatch.

The value of the Dow Jones Industrial Average at the close of trading on Tuesday increased by 1.44% and amounted to 28807.63 points.

The Standard & Poor’s 500 index increased by 1.5% – up to 3297.59 points.

Nasdaq Composite rose 2.1%, reaching 9467.97 points. The Nasdaq index reached a new all-time high with the support of Tesla Inc., which has been showing an upswing in recent sessions.

Tesla stock quotes rose 13.7%, continuing a steady rise, including after improved recommendations by several analysts, MarketWatch reports. On Monday, the capitalization of electric vehicle manufacturers soared by 20% and reached a record.

Shares of Ralph Lauren jumped 9.2% after the fashion house received last quarter profit and revenue better than consensus forecasts.

Apple shares rose 3.3% on reports that the company’s suppliers plan to fully resume production on February 10.

United States Federal Trade Commission (FTC) blocks Edgewell Personal Care Co. purchase transaction (razor manufacturer Schick) competing Harry’s Inc. The price of Edgewell securities rose by 4.2%.

Shares of eBay Inc. jumped 8.8% on The Wall Street Journal that Intercontinental Exchange Inc. several times made the company a takeover offer.

Alphabet Inc., a Google holding company, increased its fourth-quarter net profit and revenue.

Profit exceeded market expectations, but revenue was significantly worse than forecasted. Paper companies fell 2.5%.

Oil company ConocoPhillips reported that its net profit fell by 60% in October-December, while the adjusted figure was weaker than expected. The price of oil producer securities decreased by 4.55%.


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