- Stocks rose for a fourth consecutive session after China said it would slash tariffs on $75 billion of U.S.-made imports beginning next week.
- Qualcomm is Real Money’s Stock of the Day. The chipmaker said the coronavirus in China could have a “material” impact on its near-term profit forecasts.
- Twitter’s TWTR fourth-quarter revenue topped $1 billion for the first time.
Stocks rose for a fourth consecutive session after China said it would slash tariffs on $75 billion of U.S.-made imports beginning next week as part of the phase one trade agreement with the United States.
The moves by China to cut tariffs on some U.S. goods to 5% from 10% and other levies to 2.5% from 5% starting Feb. 14, also were seen as efforts by China to boost investor confidence amid growing risks from the coronavirus outbreak, which has killed 563 people and infected more than 28,000.
The rate of infection, however, appears to be stabilizing, while at the same time health officials said the mortality rate of the virus, at just more than 2%, makes it far less lethal than the SARS outbreak of 2003, which killed 800 people around the world.
Investors used China’s decision to slash tariffs, as well as Wednesday’s stronger-than-expected readings for U.S. private sector job creation and service sector growth, to push stocks higher and extend Wall Street’s rally. The U.S. Senate’s acquittal of President Donald Trump on impeachment charges also removed a key political uncertainty heading into the elections in November.
The Dow Jones Industrial Average rose 45 points, or 0.16%, to 29,336 and set an all-time intraday record high. The S&P 500 also set a record and at last check was up 0.16%. The Nasdaq gained 0.42%.
Bristol-Myers (BMY) – Get Report posted stronger-than-expected fourth-quarter earnings and forecast solid 2020 sales and profit as the $74 billion takeover of Celgene continues to boost its bottom line.
Twitter’s (TWTR) – Get Report fourth-quarter revenue topped $1 billion for the first time as users returned to the microblogging platform amid efforts to reduce hate speech and abusive posts.
Tyson Foods (TSN) – Get Report cautioned that near-term challenges will impact second-quarter growth after the meatpacker posted first-quarter earnings that were largely in-line with Wall Street forecasts.
Qualcomm QCOM is Real Money’s Stock of the Day. Shares fell Thursday after the chipmaker said the coronavirus in China could have a “material” impact on its near-term profit forecasts and disrupt global smartphone demand and supply chains.
The warning offset fiscal first-quarter earnings and revenue from Qualcomm that topped analysts’ expectations.
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