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.
Rich Rosenblum, Co-Founder and President of crypto trading firm GSR, joins Cheddar News' Closing Bell, where he explains why investors are rushing to Ethereum and breaks down the advantages it holds over other digital assets.
Earnings season continues in the week of November 15-19, with results on tap from Walmart, Home Depot, Lowe's, Target, and more. New economic data on Tuesday will provide a deeper look at the retail space when the Commerce Department releases October retail sales numbers, following this week's hot inflation data. Plus, President Biden is set to visit GM's electric vehicle factory in Michigan, where he is expected to formally introduce the plant's grand opening.
On this episode of 'Your Future Home', Chip Wade, Emmy Award-winning HGTV Host, breaks down all the ways you can avoid breaking the bank on energy costs this holiday season, especially when it comes to outfitting your home with smart tech; Dr. Wendy Osefo, Entrepreneur, Professor & Cast Member of Bravo's 'Real Housewives of Potomac', discusses her popular new Onyi Home Essentials line and how ideas of family and legacy helped shape it; Cheddar breaks down everything you need to know about how to determine your non-negotiables when purchasing a house.
One NFL team says it is using data to help it win off the field. The Seattle Seahawks say they want to be a source of inspiration for other organizations that want to reap the rewards of a data-driven culture and aim to show the unlikely role data can play in professional sports operations. Seattle Seahawks Director of Business Strategy and Analytics Paimon Jaberi joins Cheddar News' Closing Bell to discuss.
Aurora Cannabis CEO Miguel Martin joins Cheddar News' Closing Bell to discuss the company's latest earnings results, how it will achieve positive EBITDA by 2023, and the state of the cannabis industry amid potential U.S. federal legalization.
Disney saw misses on both its top and bottom lines for its fourth quarter. The entertainment giant also fell just short of Wall Street expectations for new Disney+ subscribers. CFRA Research media and entertainment analyst Tuna Amobi joined Cheddar News' Closing Bell to break down what this means for the future of Disney.
Johnson & Johnson is the latest company to announce this week it is splitting into two companies, separating its consumer operations from its pharmaceutical and medical devices unit. Electronics firm Toshiba also made a similar announcement today, and General Electric earlier this week also said it would be spinning off its aviation, healthcare, and power businesses. What does this mean for investors - and will this become a trend among conglomerates? Barron's Senior Writer Al Root joins Cheddar News' Closing Bell to discuss why Johnson & Johnson is splitting up, what this strategy means for conglomerates, and why they might pursue a break-up.
Business is booming for the used car marketplace Shift while the automotive industry as a whole struggles with demand and supply chain issues stemming from the global semiconductor shortage. Co-CEO and co-founder George Arison joined Cheddar's "Closing Bell" to talk about the company's stellar Q3 earnings and how it was able to meet demand.
Disney+ miss on new subscribers in Q3 and the growing momentum for moviegoers returning to brick-and-mortar theaters has brought the streaming business into question. Seth Schachner, managing director at Strat Americas, joined Cheddar to discuss the state of streaming and the growing number of options consumers have. "Streaming is for sure here to stay and I think more robust than ever," he said. "The real thing that's happening, not just to Hollywood but to lots of verticals from music to sports, is just that there's tons and tons of consumer choice."
Peter Weber, author and star of ABC's The Bachelor, joined Cheddar to talk about his new children's book, "The Adventures of Pilot Pete," scheduled for release on Nov. 23. Weber, a real commercial pilot, said that while fellow Bachelor Nation contestants tend to write books following their experience on the small screen, one of the reasons he opted to write a children's book instead was the prospect of the longevity it could provide.
