US: Stocks bounce back after rout

[NEW YORK] Wall Street stocks finished solidly higher on Monday led by Tesla and other tech giants as investors started buying again following Friday's rout.

The gains came on the heels of a better-than-expected report on manufacturing industry activity in January.

But the coronavirus remained a source of market unease, especially in China, where the Shanghai stock market dropped almost eight percent in its first session since the Lunar New Year break.

"All the concerns we have seen over the last two weeks are still front and center on the market's radar," said Adam Sarhan of 50 Park Investments.

The Dow Jones Industrial Average gained 0.5 per cent to 28,399.54.

The broad-based S&P 500 advanced 0.7 per cent to 3,248.90, while the tech-rich Nasdaq Composite Index jumped 1.3 per cent to 9,273.40.

Among individual companies, Tesla continued to rocket higher following a strong earnings report last week. Shares soared almost 20 per cent and have more than tripled since October.

Other technology shares with strong gains included Netflix, up 3.7 per cent, and Google parent Alphabet, up 3.6 per cent.

Exxon Mobil dropped 2.3 per cent as Goldman Sachs downgraded the oil giant on expectations that returns will lag the company's targets. Goldman also said Exxon has an "elevated" valuations compared with peers.

Gilead Sciences surged 5.0 per cent following reports a new antiviral drug being developed by the company will be tested in China to treat the coronavirus.

This week's calendar includes January jobs data and updates on the services sector, as well as earnings from Merck and General Motors.

AFP