US STOCKS-S&P 500, Nasdaq aim for record on IBM earnings, fading China virus fears

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* IBM shares jump on strong forecast, earnings
* Chipmakers rise after upbeat ASML outlook
* Futures up: Dow 0.24%, S&P 0.38%, Nasdaq 0.66%

(Adds comment, updates prices)
By Sruthi Shankar
Jan 22 (Reuters) - The S&P 500 and the Nasdaq were set for
record highs on Wednesday, as investors took heart from China's
efforts to contain a virus outbreak and a strong forecast from
IBM.
The main indexes retreated from record highs on Tuesday
after officials confirmed the first U.S. case of the coronavirus
that has killed nine and infected 440 in China. "While the death toll has risen to nine, it feels like
affirmation we're getting out of China is stemming fears that
this is turning into an epidemic," said Art Hogan, chief market
strategist at National Securities in New York.
The outbreak, which revived fears of a pandemic similar to
the Severe Acute Respiratory Syndrome (SARS) in 2003, roiled
travel and airline stocks on Tuesday, as millions of people
prepared to travel for the Chinese Lunar New Year.
International Business Machines Corp IBM.N forecast
full-year profit above market expectations on strength in its
high-margin cloud computing business, adding to the positive
sentiment around the fourth-quarter earnings season. Shares rose
3.7% in premarket trading. Netflix Inc's NFLX.O shares were up just 0.1% as
international growth helped the streaming video service beat
expectations for subscription growth, but it warned of a tough
first quarter. "Being in the fourth quarter earnings season is going to be
the tell. We're going to find out if we've gotten ahead of
ourselves or valuations are justified," said Hogan.
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were up 71 points, or
0.24%. S&P 500 e-minis EScv1 were up 12.75 points, or 0.38%,
and Nasdaq 100 e-minis NQcv1 were up 60.75 points, or 0.66%.
U.S. semiconductor stocks benefited from a strong forecast
from Dutch firm ASML Holding NV ASML.AS , the latest large
chipmaker to indicate a recovery in the sector. Chip-gear maker Applied Materials Inc AMAT.O rose 1.1%,
while Micron Technology Inc MU.O and Advanced Micro Devices
Inc AMD.O gained about 1% each.
Among the weak spots was Johnson & Johnson JNJ.N , dropping
1.5% after missing quarterly revenue estimates due to
disappointing sales of its blockbuster psoriasis medicine
Stelara and cancer drug Imbruvica. With markets looking to regain momentum following a wobbly
session on Tuesday, investors also kept a close watch on
developments around U.S. President Donald Trump's impeachment
trial and the annual meeting of world leaders and business heads
in Davos.