Stocks extended their recent rally, as fears surrounding the coronavirus abated. Risk sentiment was boosted after reports out of China and the U.K. showed promise of a coronavirus treatment amid an accelerated pace of infections being reported by the World Health Organization. The S&P 500 and Nasdaq Composite both notched fresh all-time highs, advancing 1.1% and 0.4%, respectively. The Dow climbed 483 points.
The perceived “risk-on” mood sent Treasuries lower, with the yield on the 10-year note adding five basis points to 1.65%. On the data front, ADP revealed private payrolls jumped 291,000 in January, well above estimates of 157,000 and the highest figure since 2015. Another report showed the annual U.S. trade deficit narrowed in 2019, the first time in six years. Meanwhile, an update on the U.S. services sector from the Institute for Supply Management showed activity expanded at a faster pace in January compared to December.
Ten of 11 S&P 500 sectors finished in positive territory, with Real Estate the lone laggard. Energy stocks paced the gains, as WTI crude advanced for the first time in six sessions, adding 2.8% to $51.01/barrel. Disney weighed on the Communication Services group, with shares losing 2.2% after the company topped earnings and revenue estimates, but failed to update guidance for its streaming service Disney+. In other earnings, Microchip Technology rose 6.6% after the chipmaker beat on the top and bottom line. Ford slumped 9.5% after falling short of earnings estimates, and providing disappointing full-year guidance. In other news, shares of Tesla slumped 17.3%, paring its 2020 gains to 74.8%.