DAMIAN J. TROISE AP Business Writer
NEW YORK (AP) — Technology companies led U.S. stocks higher in early trading Monday as global markets mostly calmed down following a sharp sell-off last week over worries about the spreading virus outbreak in China.
China’s main stock index tumbled in its first day of trading after an extended Lunar New Year holiday break bottled up much of the pressure that had been released in other markets. The Shanghai benchmark index fell 7.7% and China’s central bank announced it was injecting $173 billion into the markets to ensure there would be enough cash.
Health authorities released updated figures of 361 deaths and more than 17,000 confirmed cases. The World Health Organization said the number of cases will keep growing because tests are pending on thousands of suspected cases. The majority of the cases and all but one death are in China.
The outbreak is threatening China’s economy as much of the nation shuts down. Many analysts have dropped their forecasts for growth in the world's second-largest economy, to near 5% from earlier forecasts of 6% for the year. With tens of millions of Chinese city dwellers ordered to mostly stay home, retailer and tourism-related businesses already are suffering.
A slump in China’s economy is already reverberating globally as companies from Apple to Starbucks warn that their operations are being hurt by the lack of business activity. Major airlines have cut flights to China amid lower demand.
The S&P 500 index climbed 1.2% as of 10:15 a.m. as investors in the U.S. regained an appetite for risk. The Dow Jones Industrial Average rose 293 points, or 1.1%, to 28,559. The Nasdaq gained 1.5% and the Russell 2000 index of smaller company stocks rose 1.2%.
Microsoft rose 1.6% and Intel gained 1.4% as technology stocks rose broadly.
Health care companies were also among the biggest gainers. Gilead Sciences was a standout, gaining 4.5%, on reports that one of its drugs is being tested as a potential treatment for the new virus.
Bond prices fell sharply, sending yields higher. The yield on the 10-year Treasury rose to 1.56% from 1.51% late Friday in another sign that investors were more confident. The rise in bond yields helped lift banks, which rely on higher yields to charge more lucrative interest rates.
Outside of mainland China, other Asian markets were mixed. European markets rose.
Investors face another busy week of corporate earnings, with 94 companies in the S&P 500 index reporting results, according to FactSet.
Google parent Alphabet will report earnings later Monday, while Ford and Disney release results on Tuesday. General Motors and Merck will report financial results on Wednesday.
Nearly half of the companies in the S&P 500 have reported financial results and the corporate America is on track for its fourth straight contraction of quarterly profits.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
