US STOCKS-Wall St surges as China financial measures soothe virus worries

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* Nasdaq hits record, S&P on pace for best day in 6 months
* Alphabet slips as Google's ad business disappoints
* Tesla shares soar, keep up hot streak
* U.S. factory orders post biggest rise in about 1-1/2 yrs
* Indexes up: Dow 1.68%, S&P 1.71%, Nasdaq 2.12%

(Updates to mid afternoon)
By Lewis Krauskopf
Feb 4 (Reuters) - The Nasdaq hit a record high on Tuesday
and the S&P 500 headed for 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 was on pace for its biggest single-day rise in about
eight months, as the stock marked 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 478.26 points,
or 1.68%, to 28,878.07, the S&P 500 .SPX gained 55.44 points,
or 1.71%, to 3,304.36 and the Nasdaq Composite .IXIC added
196.98 points, or 2.12%, to 9,470.38.
Adding to the optimism was U.S. data showing new orders for
U.S.-made goods increased by the most in nearly 1-1/2 years in
December. 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 3.0%.
Shares of Alphabet GOOGL.O fell 2.9%, 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 increase earnings by 1.6% in
the period, according to IBES data from Refinitiv.
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 18.7%,
extending a stunning rally for the electric vehicle maker's
stock. Ralph Lauren Corp RL.N shares rose 10.2% after the
company's results. Advancing issues outnumbered declining ones on the NYSE by a
3.07-to-1 ratio; on Nasdaq, a 2.84-to-1 ratio favored advancers.
The S&P 500 posted 64 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 116 new highs and 43 new lows.