The markets are positioned for a rebound, drugs to combat the coronavirus are in testing, plus stocks to watch today in the Money and Markets Wall Street Wake-Up.

The Market Open

U.S. markets began to rebound after Monday’s massive drop.

As of 9:30 a.m. Eastern time, the Dow Jones Industrial Average moved up 0.4%. The S&P 500 was up 0.3% while the Nasdaq Composite jumped 0.5%.

The Top Story

The big question on Wall Street today is: Will markets recover from Monday’s massive sell-off?

According to research from Bespoke Investment Group, since March 2009, trading sessions falling on Monday of 2% or more in the SPDR S&P 500 ETF (NYSEARCA: SPY) were followed by an average 1% rise the following Tuesday.

“While there are no guarantees in life or in markets, history has shown that investors typically ‘buy the dip’ following big drops to start the trading week,” Bespoke wrote in a research note.

What happened: On Monday, the S&P 500 dropped 3.35% on continued fears of the coronavirus, which spread to Iran, Italy and South Korea over the weekend. The Dow Jones Industrial Average fell 3.5% and the Nasdaq Composite dropped 3.7%.

The next step: As Bespoke noted, there is no guarantee the markets will bounce back, or by how much. As of Tuesday morning, however, there were no reports of a significant escalation in the spread of the disease.

Stocks to Watch Today

Moderna Inc. (Nasdaq: MRNA) — Shares of the American pharmaceutical company were up more than 14.5% early Tuesday after reports its coronavirus vaccine was ready for clinical tests. However, it’s not the only company moving quickly to put a vaccine on the market (more below).

Home Depot (NYSE: HD) — The home improvement retailer reported beating analysts’ expectations for both quarterly earnings and revenue Tuesday. Shares of Home Depot were up 2.5%

Apple Inc. (Nasdaq: AAPL) — After posting a 4.7% drop in Monday’s trading, the technology company started to rebound in premarket trading. Apple shares moved 1.3% higher in the early morning session.

In the News

A drug developed by American biotech company Gilead Sciences Inc. (Nasdaq: GILD) is leading the race to combat the coronavirus.

Chinese officials said they will release results from clinical trials for remdesivir, which was used on 761 coronavirus patients in Wuhan, where the virus originated. The trial results are expected by the end of April.

On Monday, the World Health Organization said remdesivir “may be the only effective treatment so far for the disease.” The virus has infected nearly 80,000 and killed more than 2,600 — mostly in China.

Gilead was up 1.3% Tuesday morning after posting a 4.5% gain Monday.

Amazon to Open Checkout-Free Grocery Store Today

Amazon.com Inc. (Nasdaq: AMZN) is opening its first Go Grocery store in Seattle this morning.

The new store features a cashier-less system that uses cameras, shelf sensors and software to allow consumers to pick up items without stopping to pay or scan the merchandise.

Customers have their accounts automatically charged through a smartphone app when they leave the store.

HP to Buy Back $15 Billion in Stock

In an effort to push back a hostile takeover bid, HP Inc. (NYSE: HPQ) is planning to buy back $15 billion in its stock.

Last week, Xerox Holdings Corp. (NYSE: XRX) launched an unsolicited bid for HP for $18.40 per share in cash and a 0.149 Xerox share.

To battle the bid, HP officials said they will buy back $8 billion in stock this year and the remainder in subsequent years.

Shares of HP were up 4.3% early Tuesday morning.

Other Morning Reads

What is the S&P 500 and How Does It Work? (Money and Markets)

The Costco Connection is America’s Fourth Biggest Magazine (CNN Business)

Apple Shares Plummet on Coronavirus Fears. What’s Next? (Money and Markets)

Earnings Report

Here are the companies releasing earnings reports today:

Amarin Corp. PLC (Nasdaq: AMRN)

American Tower Corp. (NYSE: AMT)

Caesars Entertainment Corp. (Nasdaq: CZR)

Home Depot Inc. (NYSE: HD)

SmileDirectClub Inc. (Nasdaq: SDC)

Check back each morning before the opening bell for stocks to watch today with the Wall Street Wake-Up, here on Money and Markets.