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.
Virtual reality startup Sandbox VR recently announced it raised $37 million Series B funding round. It is a location-based VR company, a space that was hit hard during the pandemic. Sandbox was eventually forced to file for bankruptcy; however, the company is emerging from the pandemic with a fresh round of funding and plans to open new retail locations around the world. Sandbox VR CEO Steve Zhao joins Cheddar News' Closing Bell to discuss.
President Joe Biden signed into law today his landmark $1.2 trillion infrastructure bill, and it includes approximately $550 billion in new funding for increased broadband access, improving the power grid, and more. But what does this mean for the American economy, and American workers? Eliza Collins, Politics Reporter at The Wall Street Journal joins Cheddar News' Closing Bell to discuss what's included in the bill, which former mayor has been tapped to oversee how the bill is implemented, and how these new infrastructure investments will impact the economy.
It's been a job hunters market of late, as a mass resignation amid the pandemic has added to millions of openings across businesses. ZipRecruiter co-founder and CEO Ian Siegel explained what people currently are looking for in the labor market. "Survey after survey after survey, whether it's on ZipRecruiter or it's a third-party source, is telling us the same piece of information: over half of job seekers right now are looking for work that is either fully remote or hybrid," he said. "They got a real taste of it during COVID, and they liked it a lot. It's the number one perk that's being requested and you can already see employers starting to shift in that direction."
Celebrity butcher and the third-generation owner of Pat LaFrieda Meat Purveyors, Pat LaFrieda, joined Cheddar to dive into the rapid price surges for beef, poultry, fish, and eggs dubbed a "meatflation" by Bloomberg. LaFrieda noted that the increases were being accelerated by high fuel prices and a shortage of labor like truck drivers. However, he did express some hope that the post-holidays/pre-barbecue season lull in the meat sales market will help reset the market.
Booking.com has unveiled a first-of-its-kind sustainable travel designation for properties that might be on the itinerary of a climate-conscious traveler. CEO Glenn Fogel explained to Cheddar the key metrics a location has to achieve to earn a sustainability badge. Waste handling, energy and greenhouse gases, water usage, local community support, and protection of nature were the five top areas of concern he addressed, with an additional subset of 32 measures that properties can implement.
November is National Entrepreneurship Month. Sam Johnson, EY Americas Vice Chair of Markets and Accounts, joins Cheddar to discuss the winner for EY's National Entrepreneur of The Year award, why entrepreneurship is so important to the U.S. economy, and how entrepreneurs can contribute to the growth and success of Fortun 500 companies.
