Stocks rose solidly in early trading Wednesday as investors regained an appetite for risk after two days of heavy losses.
The sharp drops, which wiped out the market's gains for the year, were brought on by worries over economic fallout from the virus outbreak that originated in China.
The virus continues to spread and threatens to hurt industrial production, consumer spending, and travel. More cases are being reported in Europe and the Middle East. Health officials in the U.S. have been warning Americans to prepare for the virus.
Investors are setting aside some of their concerns for the time being and bid up technology stocks. Microsoft rose 1.5 percent and Adobe rose 1.8 percent. The tech sector was among the worst hit by sell-offs this week as many of the companies rely on global sales and supply chains that could be stifled by the spreading coronavirus.
Health care companies also climbed. UnitedHealth Group rose 1.9 percent.
Bond prices fell and pushed yields higher. The yield on the 10-year Treasury rose to 1.36 percent from 1.33 percent late Tuesday.
TJX, the parent of retailer TJ Maxx, surged 7.7 percent after beating Wall Street's fourth-quarter profit forecasts and raising its dividend.
Utilities and real estate companies lagged the market in another sign that investors were shifting away from safe-play stocks.
VIRUS UPDATE: The virus outbreak has now infected more than 81,000 people globally and continues spreading. Brazil has confirmed the first case in Latin America. Germany, France, and Spain were among the European nations with growing caseloads. New cases are also being reported in several Middle Eastern nations.
President Donald Trump will hold a news conference later Wednesday, along with representatives from the Centers for Disease Control, to discuss the virus.
KEEPING SCORE: The S&P 500 index rose 1.2 percent as of 10:20 a.m. Following its two-day drop, it's still down 6.4 percent from the record high it reached last Wednesday.
The Dow Jones Industrial Average rose 335 points, or 1.2 percent, to 27,423. The Nasdaq rose 1.5 percent. The Russell 2000 index of smaller-company stocks rose 0.6 percent.
European markets were mixed and Asian markets fell.
MOUSE EXIT: Disney fell 0.5 percent following Bob Iger's surprise announcement that he will immediately step down as CEO of the entertainment company. Iger steered the company's absorption of big moneymakers, including Star Wars, Pixar, Marvel and Fox's entertainment businesses. He also oversaw the launch of the Disney Plus streaming video service.
BUSTED BUILDERS: Toll Brothers fell 10.1 percent and weighed down other homebuilders after reporting disappointing fiscal first-quarter profit. D.R. Horton fell 2.7 percent and PulteGroup shed 2.9 percent.
Robotics automation technology company Symbotic made its market debut on the Nasdaq via a SPAC merger with SVF Investment Corp. 3, a special purpose acquisition company sponsored by an affiliate of SoftBank Investment Advisers. Symbotic rang the Opening Bell at the Nasdaq to celebrate the occasion this morning. Its debut on Wall Street comes amid an urgent need for logistics solutions, as it aims to reimagine supply chains with its A.I.-powered robotic and software platform. Tom Earnst, CFO of Symbotic, and Vikas Parekh, managing partner at Softbank Investment Advisors, join Cheddar News' Closing Bell to discuss.
Michelle Castillo joined Closing Bell to break down Elon Musk's announcement to SpaceX employees that the Starlink internet business might not see itself as an IPO until 2025, Twitter planning to hand over the user data he requested as a condition of the acquisition, and Warren Buffet-backed Chinese EV company BYD stating it will be supplying batteries to Tesla "very soon."
At the age of 65, Judy Katz, who ran her own public relations firm for years, was looking for a change. After retirement, she started a brand-new business as an author and ghostwriter of books. Judy Katz joins Jamie Hopkins to discuss finding a new beginning as a ghostwriter and living life to the fullest post-retirement.
Catching you up with today's market check with the mortgage demand plummeting to a 22-year low, Walmart heir Rob Walton getting set to buy the Denver Broncos for $4.56 billion, and talks continuing over Jetblue’s attempted purchase of Spirit headlines.
Meta announced its plans to join the Cannes Lions International Festival of Creativity. This is leaving businesses and customers wondering what the tech giant has in store for the event. Nicola Mendelsohn, the vice president of the global business group at Meta, joined Cheddar News to preview what the tech giant will discuss at this year's festival. "We're going to be showcasing more about reels. We're going to be talking about our commerce solutions, are messaging solutions, and of course, the method of us speaking of new ways to kind of connect with customers," she said.
On today's episode of On The Job: Cheddar gets a look at how the salon and beauty industry has pivoted throughout the pandemic; Mark Brim, President of Aquent's Recruiting Division Vitamin T, breaks down how remote work has transformed hiring and recruiting process across the board;
Julie Bauke, President & Chief Career Strategist at The Bauke Group, breaks down why companies are being 'ghosted' by new hires, and what repercussions can come from this.
Mark Brim, President of Aquent's Recruiting Division Vitamin T, joins On The Job to discuss how remote work has transformed hiring and recruiting process across the board, and the latest trends surrounding remote hiring across the globe.
Julie Bauke, President & Chief Career Strategist, The Bauke Group, joins Cheddar to discuss the phenomenon of new hires accepting jobs and quitting before their first day of work, and how ghosting one company may come back to bite you when you find a job you really want.
