US close: Late rally leaves stocks higher
US stocks closed higher on Thursday as indices were buoyed by a solid rally late in the session despite the World Health Organisation declaring the Wuhan coronavirus a global emergency.
At the close, the Dow Jones Industrial Average was up 0.43% at 28,859.44, while the S&P 500 was 0.31% stronger at 3,283.66 and the Nasdaq Composite saw out the session 0.26% firmer at 9,298.93.
The Dow closed 124.99 points higher on Thursday after closing slightly better off in the previous session as the Federal Open Market Committee kept its interest rate target steady and struck an optimistic tone on the health of the US economy in its first policy meeting of 2020.
China's National Health Commission confirmed on Thursday that the death toll had hit 170 - with confirmed cases of the virus exceeding 7,700 and spreading to the likes of India, the US, and the Philippines.
Later in the session, the World Health Organisation declared the outbreak a global health emergency but didn't go as far as to suggest restriction of travel to China.
On the macro front, America's economy edged past growth forecasts at the end of 2019, thanks to a strong showing from foreign demand as imports fell sharply, which helped to offset slower spending by households.
According to the Department of Commerce, in seasonally adjusted terms, the annualised rate of increase in US gross domestic product was unchanged at 2.1% over the final three months of the year.
That was unchanged from the previous quarter and one-tenth of a percentage point better than expected by the consensus.
Elsewhere, first-time unemployment claims in the US declined unexpectedly over the latest week, but only following a sharp upward revision to figures for the prior period.
According to the Department of Commerce, initial jobless claims in the States fell by 7,000 over the seven days ending on 25 January to reach 216,000. Economists had anticipated a print of 210,000.
In corporate news, the spotlight was on Tesla with shares of the electric vehicle manufacturer closing 10.30% after its latest results, helping push its market capitalisation past the combined total of its Detroit rivals, Ford, GM and Fiat Chrysler.
UPS shares were down 6.71% despite posting a fourth-quarter adjusted profit that matched expectations, while Verizon shares dipped 0.29% following some mixed earnings.
Shares in soft drinks maker Coca-Cola fizzed 3.21% higher after reporting that profits had risen following its push into healthier products.