US STOCKS-Wall St jumps as China stimulus measures soothe virus worries

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* Nasdaq hits record, S&P posts best day in 6 months
* Tesla shares surge, keep up hot streak
* Alphabet slips after revenue miss
* EBay shares climb on takeover report
* Indexes up: Dow 1.44%, S&P 1.50%, Nasdaq 2.1%

(Updates to close of U.S. market)
By Lewis Krauskopf
Feb 4 (Reuters) - The Nasdaq hit a record high on Tuesday
and the S&P 500 posted its biggest one-day gain in about six
months as fears of a heavy economic impact from the coronavirus
outbreak waned after China's central bank intervened.
The Dow notched its biggest single-day rise in more than
five months, as the stock market recovered from steep losses in
the prior week.
The People's Bank of China (PBOC) injected a total of 1.7
trillion yuan ($242.74 billion) through reverse repos on Monday
and Tuesday, as the central bank said it sought to stabilize
financial market expectations and restore market confidence.

The stimulus boosted investor sentiment even as fallout from
the coronavirus from China is expected to deliver a short, sharp
blow to both Chinese and global economic activity in the first
quarter. "The market is just looking beyond coronavirus and they are
cheering" China's financial actions, said Lindsey Bell, chief
investment strategist with Ally Invest.
"What history has shown us is anytime there is any sort of
epidemic or some global threat from a virus standpoint, what we
have seen is that the market will bottom," Bell said. "Everybody
is just looking past that, even though the market didn't move
that much lower on the news, at least here in the U.S.”
The Dow Jones Industrial Average .DJI rose 407.82 points,
or 1.44%, to 28,807.63, the S&P 500 .SPX gained 48.67 points,
or 1.50%, to 3,297.59 and the Nasdaq Composite .IXIC added
194.57 points, or 2.1%, to 9,467.97.
Data showed new orders for U.S.-made goods increased by the
most in nearly 1-1/2 years in December, flattered by robust
demand for defense aircraft. Technology shares .SPLRCT led gains among the S&P 500
sectors, rising 2.6%. Shares of chip companies, which are
particularly exposed to China, surged, with the Philadelphia
Semiconductor index .SOX up 3.1%.
Shares of Alphabet Inc GOOGL.O fell 2.5%, after the Google
parent posted its first holiday-quarter revenue miss in five
years. Fourth-quarter earnings season is roughly halfway done, with
S&P 500 companies expected to have increased earnings by 1.6% in
the period, according to IBES data from Refinitiv. However,
earnings in 2020 are expected to rise 8.7%.
“Though the Q4 earnings do feel somewhat underwhelming, they
are consistent with the market view that they will grow from
here,” said Nela Richardson, investment strategist at Edward
Jones.
Investors were also keeping an eye on the U.S. Democratic
presidential nominating race, where technical problems delayed
the Iowa caucus results. Results are expected at 5 p.m. ET.
In company news, shares of Tesla Inc TSLA.O surged 13.7%,
extending a stunning rally for the electric vehicle maker's
stock. Shares of eBay EBAY.O jumped 8.8% after a Wall Street
Journal report that New York Stock Exchange owner
Intercontinental Exchange ICE.N has made a takeover offer for
the company. Ralph Lauren Corp RL.N shares rose 9.2% after the
company's results. Advancing issues outnumbered declining ones on the NYSE by a
2.45-to-1 ratio; on Nasdaq, a 2.34-to-1 ratio favored advancers.
The S&P 500 posted 67 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 122 new highs and 54 new lows.
About 8 billion shares changed hands in U.S. exchanges,
above the 7.6 billion daily average over the last 20 sessions.