Dow Jones Industrial Average rises 143.78 points
The Dow climbed 143.78 points, or 0.5%, to close at 28,399.81. The S&P 500 gained 0.7% to end the day at 3,248.92. The Nasdaq Composite advanced 1.3% to 9,273.40. Stocks rebounded slightly from Friday's sharp sell-off, but investors are not ready to sound the all-clear just yet.
Rebound, but virus fears remain
The major averages cut into some of Friday's losses, led by sharp moves higher in shares of Nike and Tesla. Better-than-expected manufacturing data from the Institute of Supply Management also gave the market a boost. However, investors are still wary as the number of coronavirus cases keeps rising. The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003. The Dow, S&P 500 and Nasdaq all pared gains in midday trading after Carnival confirmed one of its guests tested positive for coronavirus six days after leaving one of its ships. Bottom line: While the Wall Street welcomed Monday's gains, it does not mean investors are ready to look past the coronavirus as a negative catalyst.
Nike jumps, Tesla hits record
Nike shares jumped 3% after analysts at both UBS and JPMorgan recommended investors buy the stock despite worries over the coronavirus. Meanwhile, Tesla surged nearly 20% to break above $700 per share for the first time after an analyst at Argus Research hiked his price target to $808 per target.
What happens next?
Disney is among the companies set to report earnings on Tuesday along with Chipotle Mexican Grill. Investors will also tune into the State of the Union address Tuesday and evaluate the results of Monday's Iowa Caucus. Read more here.