NEW YORK, Feb 19 — US stocks were buoyed by strong housing and inflation data to open higher today, brushing off concerns the epidemic in China would have a lasting economic impact.
The early gains reversed declines posted on Wall Street in the prior session after official data showed a rare resurgence of inflation at the wholesale level — which bodes well for American economic activity.
In addition, home construction was far stronger than expected in January.
The benchmark Dow Jones Industrial Average was up 0.2 per cent at 29,296.83 about 30 minutes into the trading session.
The broad-based S&P 500 gained 0.4 per cent to 3,384.39, while, the tech-rich Nasdaq jumped 0.7 per cent to 9,802.48, pushing past the record close Tuesday.
Markets have been a little jagged over the last few sessions amid concerns about the broader economic hit from the new coronavirus in China, as the death toll sped past 2,000.
But even as the International Monetary Fund warned that the effects on the fragile global economy could be more serious if the epidemic is prolonged, investors have continued to move into stocks.
“We don’t know if the stock market is going to get this call right, especially when pitted against a Treasury market that has acted far more cautiously regarding growth prospects,” said analyst Patrick J O’Hare of Briefing.com.
But he said “trading has reflected little fear of the impact of the coronavirus.”
Apple’s warning the iPhone supply would be constrained by the shutdown of businesses in China and transportation to the country barely dampened enthusiasm on Tuesday.
The company’s share price rebounded 1.1 per cent early in the session.
Electric carmaker Tesla jumped another 6.1 per cent after another analyst boosted the price target for the share to US$928 from US$911 currently. — AFP
