US Stocks mostly higher, led by tech, industrials

Headline equities of the US equity market finished session mostly higher on Thursday, 23 January 2020, as gains in technology and industrial companies offset declines elsewhere in the market amid concern about the potential impact of a deadly new virus outbreak. At closing bell, the Dow Jones Industrial Average shed 26.18 points, or 0.1%, at 29,160.09 but the S&P 500 index was up 3.79 points or 0.1% at 3,325.50, and the Nasdaq Composite Index recovered to gain 18.71 points or 0.2%, to 9,402.48.

Stocks got off to a shaky start following a sell-off in global markets amid concerns over the coronavirus outbreak that has rocked Chinese markets and threatens to hurt an already-sluggish economy, along with the potential to harm global economic growth. Worries about the coronavirus accelerated after Beijing quarantined two cities with a combined population of about 17 million in an effort to contain the spread of the disease which is being compared with a deadly outbreak of the severe acute respiratory syndrome epidemic in 2003 that killed about 800 people. The central Chinese city of Wuhan, where the virus is concentrated, closed down its train station and airport Thursday to prevent people from entering or leaving the city.

However, U.S. stocks recovered from early losses after the World Health Organization said it wouldn't declare the coronavirus outbreak in China to be a global health emergency yet.

Technology stocks notched the biggest gains. Citrix Systems led all S&P 500 stocks, vaulting 7.8%, after the software company reported fourth-quarter earnings and revenue that topped market expectation.

Industrial stocks also rose, helped by solid earnings from American Airlines Group. Strong travel demand resulted in record occupancy levels on its planes, though the airline noted it had to cancel about 10,000 flights during the fourth quarter because of the grounding of the Boeing 737 Max jets. Its stock climbed 5.4% and helped lift other airlines. Southwest Airlines gained 3.6% and Alaska Air Group rose 2.4%.

Health care stocks were the biggest losers. Edwards LifeSciences, which makes heart valves, dropped 4.8%.

Financial stocks, including insurers, also fell. Travelers Cos. slid 5.1%, while financial services firm Raymond James dropped 6.2% after falling short of profit forecasts.

V.F. Corp. slid 9.7% after the maker of Vans and Timberland shoes cut its profit forecast for the year following weak fiscal third-quarter sales.

On the economic front, the Labor Department released a report showing a modest increase in first-time claims for U.S. unemployment benefits in the week ended January 18th. The report said initial jobless claims rose to 211,000, an increase of 6,000 from the previous week's revised level of 205,000.

Meanwhile, a separate report from the Conference Board showed a slightly bigger than expected decrease by its index of leading U.S. economic indicators. The Conference Board said its leading economic index fell by 0.3% in December after inching up by a revised 0.1% in November

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