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.
Stocks closed lower Thursday, with the Nasdaq falling close to 2.5% for its worst day since September. Tech stocks dragged on the index, which is down nearly 3% for the week. Investors are continuing to respond to the Federal Reserve's taper timeline and interest rate announcement, as well as keeping an eye on the COVID-19 omicron variant as cases spike in major metropolitan areas like New York. David Sadkin, president and partner at Bel Air Investment Advisors, joins Cheddar News' Closing Bell to discuss.
There's a new ETF designed to offer investors exposure to 'meme stocks.' Roundhill Investments launched it earlier this month and says the ETF is the first that is explicitly designed to track the performance of meme stocks. Roundhill Investments Vice President of Research Mario Stefanidis joins Cheddar News' Closing Bell to discuss.
Jared Madfes, Partner at Tribe Capital, joins Cheddar's Closing Bell, where he says crypto investors should continue to focus on the long-term despite the recent price boost in the hours following Wednesday's Fed decision.
Mobile bill payment application Papaya recently raised $50 million in a series B round led by Bessemer Venture Partners.
Papaya lets users take a photo of any bill, and the app's AI-powered 'bill understanding technology' pays the bill in seconds. The company says its goal is to help people spend more time on things that matter, by making bill-paying as painless and quick as possible. Papaya CEO and co-founder Patrick Kann joined Cheddar News' Closing Bell to discuss.
Markets jumped on the Federal Reserve's announcement it would speed up its tapering timeline and institute three rate hikes in 2022 — but that was before the COVID-19 omicron variant seemed to be a threat. This announcement also comes as it took the central bank a number of weeks to recognize that inflation does not seem to be transitory as consumers feel price pressure across the board. Bill Adams, senior economist at PNC, joins Cheddar News' Closing Bell to discuss the Fed's moves, how the ongoing pandemic could continue to impact the economy, the Fed's dual mandate, and more.
Delta Air Lines CFO Dan Janki joined Cheddar's Kristen Scholer to talk about the airline's 2022 outlook on its Capital Markets Day as the travel industry recovers from pandemic disruptions. The airline projects a return to profitability next year despite the emergence of the omicron variant during the peak holiday season. Janki said that there had been no impact on domestic travel as of yet, but the company is remaining vigilant for any change. He did note that there had been some international fallout as countries implemented travel restrictions.
Tom Shannon, Bowlero CEO, joined Cheddar to discuss the decision to bring the company to the New York Stock Exchange via a SPAC merger with Isos Acquisition Corporation. Shannon said one of the goals of the public offering is to expand operations internationally, noting that Bowlero has the potential to reach worldwide markets due to the sport's popularity. "Bowling is a global market, and I'll give you an example. In South Korea, there are three million league bowlers and 1,200 bowling centers in South Korea alone," he said.
If you're looking for a date, 2022 might be your year. Online dating platform Bumble is buzzing with dating predictions from its latest survey. Shan Boodram, sex and relationships expert at Bumble, joined Cheddar to discuss some of the findings and what people can expect from the future dating landscape. Some of the results showed that public displays of affection are back on the rise as more people get vaccinated and that more users are opting for alcohol-free first dates. She also explained the trend of "explori-dating," a way that users are attempting to get out of their comfort zone. "People are willing to date outside of their city to get to that," she said.
Anthony Martini, Chief Music Officer of Slip.stream, and Jesse Korwin, CMO of Slip.stream, talk about the challenges creators have uploading music on Twitch and how 'Slip.stream' prioritizes artists by streamlining the licensing process.
