US STOCKS-S&P 500, Nasdaq scale new highs on China stimulus hopes, drop in new virus cases

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* Garmin climbs after upbeat revenue forecast
* China expected to cut benchmark interest rates
* Fed minutes to be released at 2 p.m. ET (1900 GMT)
* Indexes up: Dow 0.29%, S&P 0.46%, Nasdaq 0.71%

(Updates to open)
By Medha Singh
Feb 19 (Reuters) - The S&P 500 and the Nasdaq hit fresh
highs on Wednesday on signs of slowing coronavirus infections
and expectations that China would take more measures to bolster
its virus-hit economy.
The number of new coronavirus cases dropped for the second
straight day in China although global health officials cautioned
it was too early to predict how the epidemic will play out and
many viewed the official data with skepticism.
MKTS/GLOB
China is widely expected to cut its benchmark lending rate
on Thursday as it attempts to limit the damage from business
shutdowns and travel curbs on the world's second-largest
economy. "There are talks that China's central bank will cut
short-term interest rates tonight as they try to stimulate the
economy ... and that's why equity markets are trading a little
bit higher," said John Brady, senior vice president at R.J.
O'Brien & Associates in Chicago.
China's recent stimulus measures, confidence in the U.S.
economy and hopes that the damage from the outbreak will be
short-lived have fueled Wall Street's rally in recent weeks.
"Market certainly believes that the worst of the economic
impact will be felt in the first quarter," Brady said, adding
that the more poorly the first-quarter economic data was, the
stronger the v-shaped bounce would be in the next two quarters
if the virus is contained.
Technology stocks .SPLRCT , which are sensitive to news
related to China's growth, gained 0.8%, the most among major S&P
sectors. Defensive real estate .SPLRCR and utilities .SPLRCU
were in the red.
U.S. stocks .DJI .SPX fell on Tuesday as a warning from
Apple Inc AAPL.O that it would be unable to meet its
current-quarter sales targets highlighted concerns about
disruptions to global supply chains.
However, many analysts saw the iPhone maker's forecast
update as a near-term problem. Apple shares were up 1.1%.
At 9:49 a.m. ET, the Dow Jones Industrial Average .DJI
rose 0.29% to 29,316.60 and the S&P 500 .SPX gained 0.46% to
3,385.73. The Nasdaq Composite .IXIC was up 0.71% at 9,801.65.
Market participants now await the minutes of the U.S.
Federal Reserve's last policy meeting, where the central bank
pointed to continued moderate growth for the domestic economy
and said it was monitoring risks from the coronavirus outbreak.
Several Fed policymakers are also scheduled to speak before
the minutes are released at 2:00 p.m. ET (1900 GMT).
Among other stocks, Garmin Ltd GRMN.O rose 7.6% after the
wearable fitness devices maker forecast full-year revenue above
analysts' estimates.
Advancing issues outnumbered decliners by a 2.49-to-1 ratio
on the NYSE and by a 2.23-to-1 ratio on the Nasdaq.
The S&P index recorded 53 new 52-week highs and two new
lows, while the Nasdaq recorded 92 new highs and 14 new lows.