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.
Coinbase reported third quarter earnings yesterday and revenue did not at all meet estimates, with the company saying that it also saw a staggering decrease of about 1.4 million customers in comparison to the previous quarter. This comes in the same week where bitcoin and ethereum, two of its most important digital assets hit record highs. Martin Gaspar, research analyst at CrossTower explains how a soft crypto trading quarter contributed to the less-than-ideal revenue outcome.
John Jannarone, Editor-In-Chief at IPOedge.com, joined Wake Up With Cheddar to discuss Riivian ahead of its public debut on the Nasdaq, as investors gear up for the biggest IPO for a U.S. company since Facebook.
DoorDash is set to acquire European-based food delivery company Wolt in an $8.1 billion deal. Ann Berry, chief investment officer at media platform Wheelhouse, joined Cheddar to discuss how this positions DoorDash in the prepared food and potentially the grocery delivery space. "I do think that what DoorDash is trying to be thoughtful about now is how to take that there's been a shift in consumer behavior in terms of mobile ordering and delivery and try and apply it to other categories," she said, also pointing to its partnership with beauty supply company Ulta.
Amazon founder Jeffrey Bezos took to the stage at the U.N.'s COP26 Climate Summit to unveil a new plan to combat climate change, but some say it might do more harm than good. Justine Calma, Science Reporter at The Verge, joined Cheddar to discuss.
Misfits Market, the grocery delivery company that capitalizes on curbing food waste, expanded into California for the first time on Wednesday. Abhi Ramesh, founder and CEO, joined Cheddar to discuss the launch in the Golden State, after the company's beginnings in Philadelphia and experiencing a wave of growth amid the pandemic. He noted that the expansion was an opportunity to provide West Coast communities with fresh produce as "one in five California households are in food deserts and don't have access to fresh, healthy food."
George Seay, CEO of Annandale Capital, talks about the supply chain issues and labor shortages impacting the tech sector, and where to hedge as inflation rises.
The Justice Department has filed a lawsuit to block Penguin Random House from acquiring its rival Simon & Schuster. The DOJ hopes this will block the merger, which it says would ultimately hurt authors and consumers nationwide. Barry C. Lynn, executive director of the Open Markets Institute, joined Cheddar to explain what the lawsuit signals about the Biden administration's approach to cracking down on antitrust, and why Amazon might be next.
Bryan Freeman, Executive Chairman of Real Good Foods, discusses the need for healthy meal choices in the frozen food space and what expansion for the company looks like.
Lance Ippolito, Head Trader at The Future of Wealth, talks about the health of the tech sector amid the supply chain challenges and the catalysts fueling record highs on the stock market.
Darren Schuringa, Founder & CEO of ASYMmetric ETFs, discusses the major risks to markets and offers ways to hedge high inflation as consumer spending continues to rise.
