The Dow Jones industrials surged 5%, the Nasdaq rose 4.5%, and the S&P 500 gained 4.6% in today's stock trading. Small caps tracked by the Russell 2000 advanced 2.2%. Volume tracked lower on both major exchanges vs. Friday, according to early data.

The coronavirus has now spread to more than 60 countries. There are more than 89,000 confirmed cases worldwide, with about 80,000 of those in China. But the rate of cases outside China is rapidly rising. Over the weekend, New York saw its first confirmed case, while Washington state confirmed a second U.S. death.

Around 2 p.m. ET, three more deaths were reported among coronavirus patients in Washington state. That brings the total U.S. Covid-19 deaths to five. Four new confirmed cases bring the state's tally to 14 (including deaths).

Meantime, New Hampshire confirmed its first case of Covid-19 — a health care worker who returned from Italy, who is at home in isolation.

Apple (AAPL), up 9% in heavy volume, was the Dow's biggest gainer. Oppenheimer upgraded the iPhone maker to outperform from perform with a 320 price target, saying Apple stock is "oversold" and virus-related production issues will be temporary. On Friday, the stock fell as much as 6% to a two-month low before regaining nearly all of its loss by Monday afternoon.

Walmart (WMT) surged nearly 8% in fast trade as it aims to retake its 200-day moving average. Shares of the discount retail giant are on track to snap a five-session losing streak. Walmart stock is now 7% off its 52-week high. Walmart and other discount retailers have seen increased sales as U.S. consumers rush to stockpile food, cleaning supplies and medical masks.

Broad Rally For Dow Jones

All 30 Dow stocks were higher. In addition to Apple and Walmart, four other blue chips rallied more than 6% each: Merck (MRK),  UnitedHealth Group (UNH), Microsoft (MSFT) and Travelers(TRV).

Microsoft has held up relatively well, remaining above its 200-day average during last week's sell-off and reclaiming its 50-day Monday, after two sessions below the line. Many other Dow Jones stocks last week breached their 200-day average or fell sharply further below the line.

Discount retail, automaker and beverage stocks led the upside among IBD's 197 industry groups. Generic drugs, airlines and travel bookers lagged.

Stockpiling Supplies?

Costco (COST) gapped up and was one of the top gainers in the Nasdaq 100, up 10%. The discount giant's stock popped back above its 50-day and 200-day lines to regain all its losses from the prior two sessions. Volume was running three times higher than usual. Costco reports quarterly results Thursday.

Target (TGT) stock rose 6% in twice normal trade to retake its 200-day line, as consumers also rushed the discount chain's shelves for coronavirus-related supplies.

Tesla (TSLA) rebounded 11% to halt a five-session slide. Shares found support at the 50-day Friday, marking the first test of the line since an October breakout. That normally sets up an opportunity to buy or add shares. But with the market in correction, all purchases are highly risky.

China Stocks Rally

Over in the IBD 50, Brazilian investment bank XP (XP) rallied 7% to stem a six-day losing streak, while insurance broker Brown & Brown (BRO) bounced nearly 6% after finding support at its 50-day.

China stocks ZTO Express (ZTO) and New Oriental Education (EDU) rose more than 3% each. JD.com (JD), a China stock not currently on the IBD 50, shot up 13% to a new high in fast turnover. The China e-commerce giant reported Q4 results that topped views on both the top and bottom lines. Shares are well extended, even beyond the 20%-25% profit-taking zone.

The Innovator IBD 50 ETF (FFTY) gained 4% to break a seven-session losing streak.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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