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.
American Express and Nova Credit have partnered the credit passport program aimed at expanding access to credit for immigrants from the Dominican Republic, Nigeria, Kenya, and Brazil. Misha Esipov, co-founder and CEO of Nova Credit, joined Cheddar's Ken Buffa to talk about the program's benefits for immigrants who have to start over in the U.S. and are looking to establish a credit history. "If you were a good borrower in your home country — and you can prove you were a borrower in your home country — when you first arrive here, you can use that information to continue to be a good borrower," he said of the service.
Despite the rising cost of a home in the U.S., sales rose 1.9 percent in November, and according to Zillow, prices are expected to climb even higher in 2022. M. Ryan Gorman, president and CEO of Coldwell Banker Real Estate, told Cheddar's "Closing Bell" that while median prices are high, demand for a new home is just as high, particularly in "tax and weather favorable" destinations like Florida, Tennessee, and Texas. Gorman also said he sees buyer demand remaining high next year even if interest rates rise somewhat, noting that the already tight housing inventory is expected to slim down even more and foreign purchasers return to the market. "As we get past the holidays and those foreign buyers are able to come back and actually acquire homes and go shopping, I think that may be a bigger driver of some of that increase in buyer demand," he said.
The airline industry says it is contending with staff shortages that threaten to hamper operations amid the COVID resurgence, andDelta Airlines CEO Ed Bastian called on the CDC to revise its guidance for vaccinated workers who test positive from a 10-day quarantine to just five. Chuck Liberman, chief investment officer and managing partner at Advisors Capital Management LLC, joined Cheddar to talk about the current guidance on isolation and why he believes the omicron variant calls for more relaxed guidance given its reportedly mild symptoms.
A new series is looking to advance Black founders who have disruptive ideas and companies. 'Bet on Black' is a new series that allows black entrepreneurs to pitch their businesses in the hopes of securing $200,000 in funding. Revolt TV and Target teamed up to create the show. Detavio Samuels, CEO of Revolt, joins Cheddar News to discuss.
Bitcoin's rise to the mainstream has been a wild ride this year. The cryptocurrency is trading a little under $49,000 Wednesday morning and is set to finish the year sharply higher than where it began earlier this year. Ether prices also soared this year, rising from $730 per coin to nearly $4,000. Ben Armstrong, founder of Bitboy Crypto, joins us to discuss what's in store for crypto in 2022.
The fitness industry was one of the most severely impacted at the start of the pandemic. As the omicron variant of COVID-19 threatens fitness centers and gyms, the Global Health and Fitness Association, along with the Community Gyms Coalition, are calling on the federal government to provide pandemic relief before the close of 2021. Crunch Fitness Franchise CEO Ben Midgely joined Cheddar to talk about proactive steps gyms are taking to maximize business as COVID resurges. "It should be a little bit easier," he said. "We hate to have to deal with it again, but it's what businesses in this country have to work with."
According to the FAA, airlines have reported over 5,000 incidents involving unruly passengers this year, with more than 3,600 of those involving people who refused to wear face masks. As a result of all this, airline crews are calling on the federal government to step in to implement protocols to help ensure safety on the ground and while in flight. President of the Association of Flight Attendants- CWA Sara Nelson, joined Cheddar to discuss more.
The NHTSA is investigating Tesla over the potential for crashes and distracted driving due to its front touch screen "Passenger Play" game option. The probe covers 580,000 vehicles for all four models from 2017 to 2022.
Cheddar is looking back at the 12 biggest buzzwords of the year leading up to Christmas. The term for Day 11 is Fundamentals. Definition: (noun) information related to a business' profitability, revenue, assets, liabilities, and growth potential.
