What to watch today: Dow to rise, Buttigieg and Sanders lead Iowa, and Trump's likely acquittal

U.S. stock index futures pointed to a higher open on Wednesday as the market continues to bounce back from a steep sell-off that was sparked by worries over a new strain of coronavirus. The Dow on Tuesday jumped 407 points, or 1.4%. The S&P 500 gained 1.5% to end the day. The Nasdaq advanced 2.1% to a record close. Stocks surged for a second day, making up even more ground from last week's steep drop. (CNBC)

* Short sellers are propelling the stock market higher, Jim Cramer says (CNBC)

On the data front, ADP private payrolls numbers for January are due at 8:15 a.m. ET, before December international trade at 8:30 a.m. ET. The final January services purchasing managers' Index reading is out at 9:45 a.m. ET, followed by ISM nonmanufacturing at 10 a.m. ET. (CNBC)

General Motors (GM), GlaxoSmithKline (GSK), and Dow stock Merck (MRK) are among those reporting earnings before the opening bell on Wednesday, while Qualcomm (QCOM) and Fox (FOXA) are report after the bell. (CNBC)

* Merck says it plans to spin off its slow-growth products into a new company (CNBC)

Disney (DIS) reported fiscal first-quarter earnings that beat on both the top and bottom lines. Shares fluctuated after hours, but were mostly within 1% of the stock's price at close. Disney said in its report that its new streaming service, Disney+, had 26.5 million paying subscribers during the quarter. (CNBC)

* Disney expects coronavirus outbreak to deal its theme parks a $175 million blow (CNBC)

Shares of Tesla (TSLA) were off about 4% in the premarket after surging another 13.7% on Tuesday. Canaccord on Wednesday downgraded the stock, which has doubled this year. Investors should wait for a better opportunity to buy after Tesla's "electrifying" run, said Canaccord. On Monday, Tesla shares soared nearly 20%. (CNBC)

Ford (F) shares were sliding about 8% in the premarket after the carmaker posted a fourth-quarter loss and disappointing 2020 guidance, warning of coronavirus-related manufacturing shutdowns. (CNBC)

* GM unveils new tech-savvy Cadillac Escalade SUV (CNBC)

Ex-Mayor Pete Buttigieg and Sen. Bernie Sanders lead the pack in the 2020 Iowa Democratic caucuses, according to partial results released by the Iowa Democratic Party. The former South Bend, Indiana, mayor has about 27% of state delegate equivalents, narrowly topping Sanders on 25%. The data only included 71% of precincts. (CNBC)

* Rhode Island governor backs Michael Bloomberg for president (AP)
* Video shows Iowa caucus voter pulling support for Pete Buttigieg after learning he's married to a man (CNBC)
* Rosy polls but few yard signs: How Joe Biden stumbled in Iowa (Reuters)

Four months after Democrats in the House of Representatives launched a formal impeachment inquiry into President Donald Trump's dealings with Ukraine, the Senate is poised today to acquit him on charges of abuse of power and obstruction of Congress. Trump faces a 4 p.m. ET vote that will determine whether he can complete his term as president. (Reuters)

Trump delivered his third State of the Union last night before a joint session of Congress. The ceremonial address resembled a campaign speech, with the president boasting of his record on jobs, pledging to protect Social Security and warning against Democratic policy proposals. (CNBC)

* Trump touts killings of ISIS leader, Iranian general (CNBC)
* Pelosi rips up Trump State of the Union speech, right on the podium (AP)
* Trump awards Rush Limbaugh, who recently revealed his cancer, awarded Medal of Freedom (The Hill)

China said that as of Tuesday night, a total of 24,324 coronavirus cases have been confirmed and 490 people have died in the country. A second, 1,600-bed hospital for coronavirus patients in Wuhan is set to be completed today as the virus spreads. Hong Kong leader Carrie Lam has said those coming from mainland China will be put into compulsory quarantine for 14 days. (CNBC)

* 5 charts show why the global economy is more vulnerable now than during SARS (CNBC)
* Nike says the coronavirus epidemic will have 'material impact' on China operations (CNBC)

Princess Cruises said it has placed 3,700 passengers and crew under mandatory quarantine for two weeks after 10 passengers aboard a cruise ship in Japan tested positive for the new coronavirus. One of the 10 passengers is from the U.S., while the others include two Australian guests, three Japanese guests, three guests from Hong Kong and one Filipino crewmember. (CNBC)

Macy's (M) said it plans to shut 125 stores over the next three years and slash about 2,000 corporate jobs, as it closes its Cincinnati headquarters and tech offices in San Francisco. Macy's said it plans to exit weaker shopping malls, and instead shift its focus toward opening smaller-format stores in strip centers. (CNBC)

Shares of eBay (EBAY) surged over 8% in the premarket after the Wall Street Journal reported that Intercontinental Exchange (ICE) has made a bid to acquire eBay's marketplace business. ICE shares fell 7.4% on the news.

Chipotle Mexican Grill (CMG) reported quarterly earnings that topped analysts' expectations as its limited-time carne asada drove customers to its restaurants.

Nike (NKE) said it's closed half of its stores in China as the government tries to contain a new virus outbreak there, saying it will have a "material impact" on its operations across the country.

Ireland's top privacy regulator has launched a probe into Google's (GOOGL) processing of location data that it collects from users.

Snap (SNAP) released its fourth-quarter earnings, and the company missed on revenue expectations, sending shares plunging as much as 14% after the bell on Tuesday.

Best Buy (BBY) backed CEO Corie Barry after the retailer's board investigated the chief executive over allegations of an inappropriate romantic relationship.

Baby Yoda will be back in October. Disney CEO Bob Iger said "The Falcon and the Winter Soldier" will arrive on the service in August, "WandaVision" will appear in December and "The Mandalorian" will return in October. The release date reveal comes just days after the company gave fans a brief glimpse of those upcoming Marvel shows in an ad that ran during the Super Bowl. (CNBC)