Stocks recover after WHO explains new virus cases

U.S. stocks erase most of their earlier losses after the World Health Organization says that the spike in coronavirus cases reported by China aren’t all new cases of the disease.

Nasdaq and S&P 500 are roughly flat, and the Dow pares its loss to -0.2% vs. -0.7% earlier.

10-year Treasury yield slips 1 basis point to 1.61%.

The spike in new Covid-19 cases reflects more of a change in how China is reporting them and doesn’t represent “a significant change in the trajectory of the outbreak,” said Dr. Michael Ryan, executive director of WHO Health Emergencies Program.

Traditionally defensive sectors real estate (+0.6%) and utilities (+0.5%) are outperforming S&P 500 industry sectors, while industrials (-0.4%) and energy (-0.4%) trail the broader market.

Crude oil rises 0.8% to $51.57 per barrel; gold +0.5% to $1,579.10 per ounce.

In European markets, the Stoxx Europe 600 and Germany’s DAX ended the session roughly flat; the U.K.’s FTSE 100 closed down 1.1% after the U.K. Treasury chief quit; France’s CAC 40 fell 0.2%.

The U.S. Dollar Index is little changed at 99.08.

https://seekingalpha.com/news/3541842-stocks-recover-after-who-explains-new-virus-cases