Stocks rebounded on Tuesday from their worst session since October, as investors brushed off coronavirus fears. A day after the S&P 500 broke its streak of 70 sessions without a 1% move in either direction (the longest stretch since 1969), the benchmark index added 1.0%. The Dow advanced 187 points, while the Nasdaq Composite climbed 1.4%.
All 11 S&P 500 sectors finished in positive territory. The Technology group paced the gains, with Apple rising 2.8% on reports the company requested its suppliers to ramp up iPhone production by 10%. In earnings, 3M lost 5.7% after its quarterly profit and revenue figures both fell shy of Wall Street estimates. United Technologies added 1.2% following its top and bottom line beat. Pfizer fell 5.1% after disappointing analyst earnings forecasts. Whirlpool gained 5.7% after its profit tally exceeded consensus expectations.
Treasuries declined with the yield on the 10-year note up five basis points to 1.65%. Earlier this morning, the yield spread between three-month bill and 10-year note briefly inverted for the first time since October as investors assessed the potential economic impact of the coronavirus. On the data front, the Conference Board’s consumer confidence index for January spiked to a five-month high. Separately, core capital goods orders dropped the most in eight months in December, while durable goods orders rebounded more than expected. Another release from S&P CoreLogic Case Shiller revealed home prices in its 20-city composite increased 2.6% year-over year in November, faster than the prior 2.2% pace.
In commodities, WTI crude added 0.8% to $53.57/barrel, snapping a five day losing streak.