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Stocks opened lower, but quickly pared losses Tuesday as positive political commentary and analyst actions diluted early concerns over a virus outbreak in China. China-based stocks, as well as U.S. stocks with China exposure and some travel-related issues remained under early pressure. But Intel (INTC) jumped in early trade, leading the Dow industrials. Tesla (TSLA) spiked to the top of the Nasdaq 100. After the close, FANG giant Netflix (NFLX) delivers its quarterly results, and IBM (IBM) wraps things up for the Dow Jones today with its afterhours report.
The Nasdaq and S&P 500 each opened down 0.3% on the stock market today, but the Nasdaq pared back to a 0.1% loss, while the S&P 500 traded down 0.2% a half hour into the session. The Dow Jones industrials sagged 0.2% lower, bolstered by Intel’s 1.8% gain, as stocks moved into the holiday-shortened week.
A still unidentified virus which has killed six and infected hundreds in China is forcing city quarantines and affecting travel routes to Japan, Thailand and South Korea. On the U.S. market, investors across the board sought shelter from any sort of exposure to the potential financial impact of the unfolding situation. Among China-based stocks, hotel operator Huazhu Group(HTHT) slammed 11% lower, Yum China Holdings (YUMC) tanked more than 5%.
For-profit school chains TAL Education (TAL) and New Oriental Education & Technology (EDU) fell 9% and 2%, respectively. TAL reported mixed fiscal third-quarter results early Tuesday. New Oriental’s results, reported Monday, topped analyst expectations.
The worst losses on the Nasdaq were from Trip.com Group (TCOM), down almost 12%, and Macau casino owner Wynn Resorts (WYNN), which sank 6%.
Wynn Resorts, Las Vegas Sands (LVS) fell hardest among S&P 500 stocks, down 5.6%. Cruise-line operator Carnival (CCL) showed a 1.3% decline.