Stocks End Day Near Flat After Rally Falters

By Anna Isaac and Akane Otani 

Early gains among U.S. stocks faded late Wednesday, leaving major indexes little changed from the prior day.

A rally in shares of fast-growing, technology-driven companies helped lead the market higher shortly after the opening bell.

As the afternoon progressed, though, the market's momentum faded--leaving the Dow Jones Industrial Average down 9.77 points, or less than 0.1%, to 29186.27.

The S&P 500 advanced 0.96 point, or less than 0.1%, to 3321.75 and the Nasdaq Composite inched up 12.96 points, or 0.1%, to 9383.77--ending just shy of a record set Friday.

Earnings drove some of the bigger moves in the market Wednesday.

International Business Machines shares rose $4.72, or 3.4%, to $143.89 after the company unexpectedly reported a slight gain in fourth-quarter revenue and ended a streak of declining sales.

Tesla shares advanced $22.36, or 4.1%, to $569.56 after a Wedbush analyst boosted his price target for the stock, citing expectations for strong demand for Tesla products in Europe and China. Shares of the electric-car maker have risen 36% this year, well outpacing the broader market.

Apple added $1.13, or 0.4%, to $317.70 following a report that it would take steps to begin assembling a new low-cost iPhone later this year.

Elsewhere, the Stoxx Europe 600 edged down 0.1% after drifting around the flatline for much of the session.

Yields on Italian government bonds rose, though, after reports suggested a key member of the country's ruling coalition might step down. Bond yields rise as prices fall.

Shares of Italian banks fell as well, with Milan-based Banco BPM dropping 2.8% and UniCredit losing 3.3%.

In Asia, stock indexes chipped away at the prior day's losses after Chinese authorities said hospitals were taking measures to contain the outbreak of a potentially deadly virus.

Authorities are recommending that people not go into or out of Wuhan, the central Chinese city where the virus originated.

Ministries and local governments are also arranging refunds on plane and train tickets, banning tourist groups from Wuhan and organizing coverage of medical expenses, analysts at Everbright Sun Hung Kai said in a note.

Investors have a high degree of confidence in the Chinese government's ability to contain the virus, said James Athey, senior investment manager at Aberdeen Standard Investments.

"The global macroeconomic impact of this virus in Asia, based on what we know now, is likely to be very small," Mr. Athey said. "And secondly, irrespective of the macro response, the market has been trained to buy dips and it's done that today."

Hong Kong's Hang Seng Index ended the day 1.3% higher. Japan's Nikkei Stock Average advanced 0.7%, and the Shanghai Composite rose 0.3%.

Write to Anna Isaac at [e-mail] and Akane Otani at [e-mail]

(END) Dow Jones Newswires

January 22, 2020 16:36 ET (21:36 GMT)

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