US STOCKS-Wall St slides on coronavirus fears, Intel limits losses

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US STOCKS-Wall St slides on coronavirus fears, Intel limits losses

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* Intel hits 19-year high after strong forecast

* Energy, healthcare, financial stocks slide the most

* Officials confirm second U.S. case of coronavirus

* Indexes down: Dow 0.25%, S&P 0.41%, Nasdaq 0.22% (Changes comment, updates prices)

By Sruthi Shankar

Jan 24 (Reuters) – U.S. stocks fell on Friday amid renewed concerns over the spreading of a coronavirus outbreak from China, offsetting strong gains for Intel.

The chipmaker’s shares jumped 8.9% to hit a 19-year high after it forecast better-than-expected 2020 earnings, joining many of its peers to signal a recovery in chip demand.

U.S. health officials confirmed that a second case of Wuhan coronavirus in the United States had been detected in Chicago, adding to nerves after the outbreak in China killed 26 people and infected more than 800 in the past week, raising concerns about its fallout on the global economy.

Airlines and travel stocks fell again, with United Airlines Holdings Inc and American Airlines Group Inc shedding about 4%.

“It has taken the wind out of the market, because for now other than (Intel and American Express) we have stocks coming under some selling pressure,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“It’s a knee-jerk reaction,” Cardillo said, adding that strength in earnings was sufficient to prop up markets.

The Philadelphia SE Semiconductor index hit a fresh record, with Broadcom Inc rising 1.9% after entering into a supply agreement with Apple Inc.

Analysts expect earnings at S&P 500 companies to drop 0.5% in the fourth quarter, but forecast a 5.5% rise for the first quarter of 2020, according to Refinitiv IBES data.

American Express Co rose 2.4% after reporting a better-than-expected quarterly profit as more people used its credit cards for shopping and paying bills.

However, financial stocks were hit by declines in shares of big banks including JPMorgan Chase & Co and Bank of America Corp, which fell more than 1.5%, tracking a drop in U.S. Treasury yields.

At 11:47 a.m. ET, the Dow Jones Industrial Average was down 0.25% at 29,087.92. The S&P 500 fell 0.41% to 3,311.79 and the Nasdaq Composite dropped 0.22% to 9,382.10.

Healthcare stocks fell 1.4%, dragged down by Bristol-Myers Squibb Co and Amgen Inc.

Energy stocks dropped 1.2%, hit by weaker oil prices on concerns over the China coronavirus curbing travel and oil demand.

Declining issues outnumbered advancers for a 1.67-to-1 ratio on the NYSE and a 1.92-to-1 ratio on the Nasdaq.

The S&P index recorded 84 new 52-week highs and three new lows, while the Nasdaq recorded 104 new highs and 35 new lows. (Reporting by Sruthi Shankar and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)