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.
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Stocks fell into the red on Wednesday after new data heightened fears over inflation. Vince Lorusso, Co-Founder and portfolio manager at Changebridge Capital, joins Cheddar News' Closing Bell where he says recent history suggests investors to buy the dips.
Food delivery giant DoorDash is acquiring European food delivery company Wolt. The all-stock deal is valued at $8.1 billion and is expected to close in the first half of 2022. The companies say they share a mission to build a global delivery platform. Gerber Kawasaki investment advisor Eva Agi joins Cheddar News' Closing Bell to discuss what the deal means for Doordash, as well as its customers and investors.
Identity verification startup Socure recently raised $450 million dollars in a series E round, bringing the company's valuation to $4.5 billion. Socure says it is now the highest-valued private company in the identity verification space, and that the funds will be used to accelerate its mission to verify 100% of good identities and eliminate identity fraud across all industries. Socure Founder and CEO Johnny Ayers joins Cheddar News' Closing Bell to discuss.
On Tuesday, an Oklahoma court overturned a ruling in a case against Johnson & Johnson for liability in the opioid crisis, and on Wednesday a North Carolina judge put a pause on the thousands of lawsuits accusing the company's baby powder product of containing cancer-causing asbestos. Elizabeth Burch, a professor at the University of Georgia school of law, joined Cheddar to break down the legal results that the pharmaceutical giant had long been hoping to get.
3D printing company Velo3D released its first earnings report since going public in September. CEO and co-founder Benny Buller joined Cheddar to discuss the company's bottom line miss while noting he expects revenue for the year will hit $26 million. Buller also expressed optimism about the company achieving $89 million in revenue in 2022.
Wheels Up CEO Kenny Dichter talked to Cheddar about the aviation company's Q3 earnings report, the increase in memberships, and rising fuel costs. He attributed some of the increase in the number of members and rising revenue to lingering concerns about commercial flying amid the pandemic and noted that legacy members have used the service more frequently than in previous years. Dichter also explained that a rise in pricing is planned for December.
With more companies offering employees flexibility in work schedules, Airbnb is looking to accommodate flexible travel plans. Chief Strategy Officer Nathan Blecharczyk joined Cheddar to discuss the growing trend of people staying in Airbnbs for longer periods of time. "In December over the holidays, in North America, we are seeing a 68 percent increase in the demand for month-long stays relative to years past," he said.
Asad Hussain, lead mobility analyst at data company PitchBook, joined Cheddar to discuss the blockbuster Rivian IPO. The electric truck maker's valuation jumped to more than $90 billion, signaling progress in the "multi-decade transformation in mobility," according to Hussain. He noted that electric automakers like Rivian, Tesla, and Lucid, will continue to lead electrification in being free to innovate and lacking the legacy issues facing traditional, combustion engine carmakers.
