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Overnight Markets: Wall Street erases losses to close flat
After the bell, Alphabet’s stock jumped 9% and the company became the most valuable in the US, surpassing the market cap of Apple.
US equities erased losses in a late-day rally to finish little changed on Monday amid strong gains in Facebook and Alphabet and after a Federal Reserve official said policy moves are not predetermined amid the recent market turmoil.
The Dow Jones industrial average was down 17 points, or 0.1%, to 16,449, the S&P 500 had lost one point, or 0.04%, to 1,939 and the Nasdaq Composite had added six points, or 0.14%, to 4,620.
Shares declined earlier in the day as weak Chinese economic data added to concerns about a global slowdown and oil prices resumed their slide, falling 5.9% to $31.62 a barrel. The manufacturing sector in the world's second-largest economy contracted in January at the fastest pace since 2012.
Alphabet rose up 1.2% ahead of its results. After the bell, the Internet giant's stock jumped 9% and the company became the most valuable in the US, surpassing the market cap of Apple (AAPL.O).
Twitter (TWTR.N) jumped 6.6% after talk of a private equity deal.
Chipotle Mexican Grill (CMG.N) was up 4.3%. The US Centers for Disease Control and Prevention said E.coli outbreaks that affected the burrito chain's customers last year appeared to be over.
Abbott Laboratories agreed to acquire diagnostic-test company Alere for $5.8 billion. Abbott rose 1.6%. Alere jumped 45%.
In economic news, US factory activity contracted for the fourth consecutive month in January, according to the Institute for Supply Management. Consumer spending, which accounts for more than two-thirds of US economic output, was flat in December from a month earlier, the Commerce Department said. Later in the week, the government is scheduled to release the jobs report for January.
In Asia, shares traded mixed on Tuesday in morning trade, after a nearly flat finish on major indexes in Wall Street overnight.
Chinese markets opened mostly in positive territory, with the Shanghai composite up 0.74%. Hong Kong's Hang Seng index fell 0.63%. Japan's Nikkei 225 was trading lower by 0.30%.
South Korea's Kospi fell 0.49%, while Down Under, the ASX 200 fell 0.62%.
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by Gavin Lumsden on Jul 22, 2016 at 16:24