Nasdaq set for fresh record on strong Intel forecast

(Reuters) - The tech-heavy Nasdaq was set to hit a new record high on Friday after a strong forecast from Intel and encouraging business activity data out of Europe lifted the mood, while investors tracked latest developments related to the coronavirus outbreak.

Chipmaker Intel Corp <INTC.O> jumped 4.8% in premarket trading, and was on course to open at a 19-year high, after it forecast better-than-expected 2020 earnings, joining many of its peers to signal a recovery in chip demand.

Advanced Micro Devices Inc <AMD.O> rose 1.0%, while Broadcom Inc <AVGO.O> gained 2.9% after entering an agreement with Apple Inc <AAPL.O> for the supply of wireless components used in its products.

While Beijing ramped up measures to contain a virus that has killed 26 people and infected more than 800 in the past week, investors took relief from the World Health Organization declaring the new coronavirus an emergency just for China and stopping short of declaring the epidemic of international concern.

Concerns about infections spreading as many Chinese travel for the Lunar New Year have taken a toll on risky assets this week, particularly travel, hotel and airline stocks.

"If you look into these types of things in the past, they tend to create some sort of a panic initially," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

"But from the perspective of how they impact the economy and the U.S. markets, they tend to be generally short-lived."

The risk-on mood was also supported by a slew of PMI data that signaled some recovery in eurozone growth this year.

A report from Markit Economics, due at 9:45 a.m. ET, is expected to show an index of U.S. manufacturing activity inched up to 52.5 in January from 52.4 in the previous month, while the services sector index likely rose to 52.9 in January from 52.8 in December.

At 8:51 a.m. ET, Dow e-minis <1YMcv1> were up 74 points, or 0.25%. S&P 500 e-minis <EScv1> were up 6.25 points, or 0.19% and Nasdaq 100 e-minis <NQcv1> were up 25 points, or 0.27%.

In other movers, credit card issuer American Express Co <AXP.N> rose 2.2% after reporting a better-than-expected quarterly profit as more people used its cards for shopping and paying bills.

Walt Disney Co <DIS.N> slipped 0.6% after the company said its Shanghai Disney Resort will be closed until further notice in the wake of the virus outbreak.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

01/24/2020 14:28

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