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.
Michael Robinson, Chief Technology Strategist at Money Map Press, joins Cheddar News' Closing Bell, where he explains why small and mid-cap stocks heating up during Tuesday's session is a very good sign for a stock market that ended the day's session sharply higher.
As the popularity of Bitcoin and other digital tokens grew this year, more financial institutions and payment apps added ways for customers to trade or make payments using cryptocurrency. Meanwhile, companies like theater chain AMC started accepting major cryptocurrencies for tickets and concessions, and retailers are rumored to be entering the space soon. What does this mean for cryptocurrency's wider adoption — and will 2022 be the year that the average consumer is exposed to digital coin payments on a regular basis? João Almeida, Co-Founder and CTO of OpenNode joins Cheddar News' Crypto Craze: The Year of the Token to discuss.
Bitcoin had a successful 2021: reaching a new high of nearly $70,000, a $1 trillion market cap, and becoming legal tender in El Salvador. Investors also got the chance to invest in three Bitcoin futures-backed ETFs once they were approved. These developments set up the world's best-known digital coin for more success in 2022, but could altcoins like Ethereum, Litecoin, and others move into the top spot or impact Bitcoin's value? Matt Hougan, CIO of Bitwise Asset Management, joins Cheddar's Crypto Craze: The Year of the Token to discuss his 2022 outlook for Bitcoin, whether we could see an ETF backed by a physical coin, and more.
Coming off a 2021 campaign where the prices of Bitcoin, Ether, and other cryptocurrencies reached unpreceded levels, Bitwise Asset Management CIO Matt Hougan and OpenNode Co-Founder & CTO João Almeida join Cheddar News' Crypto Craze: The Year of the Token to discuss the ways the crypto market can soar even higher in 2022.
Howard Yu, LEGO professor of management and innovation at IMD Business School and author of "Leap: How to Thrive in a World Where Everything Can Be Copied," joined Cheddar to discuss the mania surrounding the concept of the metaverse. He particularly noted how companies in the retailing sector like Nike are leveraging it. "I think metaverse really opens up a window for brands to think about how can they, ongoing-wise, engage with the consumer, engage with the target audience, so their brand continues to stay refreshed in the changing environment," Yu said.
Cheddar News visited the Amazon Fulfillment Center in Robbinsville, N.J., to find out how your order turns from a click of a mouse into a box on your doorstep.
Integrity Marketing Group, nation's largest independent distributor of life and health insurance products, is showing its employees it cares. The company surprised its 5,500 employees with $125 million in cash payouts to those participating in the company's Employee Ownership Plan. Bryan Adams, CEO of at Integrity Marketing Group, and Steve Young, NFL Hall of Famer and chairman of the board at Integrity Marketing Group, join Cheddar News to talk about the announcement.
Anthony Tall, sports agent and president of Miracle Sports Agency, joins Cheddar News to talk about the challenges professional sports leagues are facing amid a surge in coronavirus cases across the U.S.
