The S&P 500 and Nasdaq Composite recovered from earlier losses as big tech shares continued to be a bright spot in the market and pushed the indexes higher. But the Dow Jones Industrial Average closed more than 100 points lower amid broader fears over a resurgence in coronavirus cases.
Here's what happened:
The Nasdaq Composite outperformed during Monday's session, and is positive for the year, unlike the S&P 500 and Dow which are both lower. - Francolla, Stevens
- Nasdaq gained 0.78% for its sixth straight positive day for the first time this year
- Nasdaq is 6.57% from its intraday all-time high of 9,838.37 from Feb. 19th
- Nasdaq is 38.62% above its 52-wk low of 6,631.42 from March 23
- Apple turned in its sixth straight day of gains for the first time since Dec. 17
- Microsoft turned in its sixth straight day of gains for the first time since Nov. 19
- Amazon turned in its sixth straight day of gains for the first time since July 10
During a relatively tame trading session, the Dow ended the day 109 points, or 0.45%, lower, after spending a portion of the day in positive territory. The S&P 500 managed to hold onto its gains ahead of the close, and ended the session 0.01% higher. The Nasdaq Composite was the day's outperformer, posting a gain of 0.78%, as big tech pushed the index higher. – Stevens
During Monday's trading session a number of stocks rose to record highs amid ongoing hopes that states' economies will begin to reopen. – Hayes, Stevens
- Chipotle Mexican Grill trading at all-time high levels back to its IPO in Jan. 2006
- Nvidia trading at all-time high levels back to its IPO in Jan. 1999
- Dollar General trading at all-time high levels back to its IPO in Nov. 2009
- Fastenal trading at all-time high levels back to its IPO in Aug. 1987
- Fortinet trading at all-time highs back to its IPO in Nov. 2009
- ServiceNow trading at all-time high levels back to its IPO in June 2012
With less than one hour left in the trading day, the Nasdaq Composite was on pace to post a six-session winning streak. That would be the average's longest since an 11-day run in December. Gains from Facebook, Alphabet and Apple, along with other tech shares, lifted the index. However, gains for the Dow and S&P 500 were kept in check amid concerns over a potential second wave of new coronavirus cases. —Imbert
During Monday's session, 95 of the 103 stocks in the Nasdaq 100 index were trading above their 50-day moving average as big tech shares led Wall Street off its intraday lows. The Nasdaq 100 traded 1% higher as Facebook, Amazon, Alphabet, Netflix and other major tech stocks rose. "When the NDX pops, it tends to take many of its components along for the ride, like now," said Frank Cappelleri, executive director of Instinet. "If the index continues higher but the % of its stocks > their 50 Day MAs drop off, it would tell us that breadth is waning." —Imbert
HSBC analyst Ali Naqvi upgraded Carnival shares to buy from hold even as the cruise line industry faces massive challenges amid the coronavirus outbreak. "Given the recent positive peer data on booking trends (albeit early days and small numbers) and Carnival aiming for a phased return of service from August, we think these factors could improve their booking and customer deposit outlook," Naqvi wrote in a note to clients. Carnival shares have plunged more than 70% year to date. However, the stock has jumped over 12% over the past month amid hopes that the economy will reopen soon. —Imbert, Bloom
The S&P 500 joined the Nasdaq in positive territory for the day, erasing earlier losses. The 500 stock average rose 0.07%. The Dow Jones Industrial Average is still in the red. — Fitzgerald
The firm said on Monday that General Motors was the most well-positioned of the automobile companies. "We view GM as being on top of the list of stocks where 'proving' resilience should unlock value, as the stock managed to dismiss years of fundamental outperformance on account of the need to 'prove' resilience into a downturn," analyst Itay Michaeli said. The firm also said once a bottom becomes "evident" then U.S. autos should "meaningfully re-rate." Shares of GM are up 11% this quarter. - Bloom
- Under Armour — Shares of the apparel maker fell sharply on the back of a 23% sales drop for the previous quarter amid the coronavirus pandemic.
- AutoNation — AutoNation reported quarterly revenue that surpassed analyst expectations, sending the stock up more than 5%.
- Cruise lines — Norwegian Cruise Line, Carnival and Royal Caribbean all fell as investors grew jittery over the possibility of a second wave of coronavirus cases.
- Marriott — The hotel operator was under pressure after reporting dismal quarterly results. Click here to read more. —Imbert
Goldman Sachs predicted there will soon be a pullback in stocks as the market is poised to get hit by a lack of buybacks, dividend cuts as well as rising political uncertainties. The bank said the S&P 500 will fall to 2,400 over the next three months, a nearly 20% decline from here, before it rebounds to 3,000 by year-end. "A single catalyst may not spark a pullback, but a number of concerns and risks exist that we believe, and our client discussions confirm, investors are downplaying," David Kostin, bank's chief U.S. equity strategist, said in a note.
Among the six negative catalysts, the strategist pointed to an increase in new coronavirus cases outside of New York state, which suggests infection may accelerate as more states begin to relax shelter-in-place restrictions. Meanwhile, investors should be cautious about the risks stemming from the U.S. presidential election and the ongoing trade tensions with China, Kostin said. –Li
Around midday, the Dow and the S&P 500 were down slightly amid concerns of a second wave of coronavirus cases as the global economy starts to reopen. The 30-stock Dow slipped 150 points, or 0.6%, while the S&P 500 dipped 0.3%. The Nasdaq Composite, however, was up 0.4% as Facebook, Amazon, Apple, Netflix and Alphabet all traded higher. The tech-heavy index was on pace for its sixth straight daily advance. —Imbert
Stephens said Monday that it was changing its best idea from Wendy's to Texas Roadhouse as consumers begin to dine out again. "Over this Mother's Day weekend we ran 60 channel checks with Texas Roadhouse locations across GA, TX, TN, OK, KS, UT, and MO covering Friday, Saturday, and Sunday evenings," analyst James Rutherford said. "We believe Texas Roadhouse comps are improving from -45% same store sales off-premise only levels exiting April as dining rooms reopen." Shares of the company are up 14% this quarter. - Bloom
CNBC's Covid-19 Testing & Treatments Index jumped more than 2% on Monday, led higher by shares of Novavax and Moderna, which were each up more than 9%. The index is equal-weighed and currently comprised of 29 companies that are working on testing and treating the coronavirus. It typically trades in tandem with the S&P 500 given how important developments around a potential treatment or vaccine are to the market, but Monday's move higher was in contrast to the benchmark's 0.5% decline. – Stevens
10:37 am: 'Undiscovered COVID-19 play' Meridian Bioscience upgraded to outperform at William Blair after 10 years with a market perform rating
Meridian Bioscience, which is a producer and distributor of diagnostic test kits, may be an "overlooked beneficiary" of the pandemic, according to William Blair analyst Brian Weinstein. "Over the last several weeks, we have started digging into what we thought were new dynamics unfolding at Meridian as a result of the company's life science division being a provider of critical components for COVID-19 molecular and antibody tests," he said. The firm said it sees a buying opportunity as testing continues to ramp up. "The global pandemic has created an opportunity for the company to significantly increase the revenue and exposure of its life science business, which we expect will be a multiyear benefit to cash flow and profitability." Shares of the company are up 83% this year. - Bloom
The Nasdaq Composite turned positive in early trading as big tech continued to show strength. Chip stocks Nvidia and Advanced Micro each gained more than 2%, while Intel and Salesforce each gained about 1%. The so-called FAANG stocks also traded higher, with Netflix the leader after posting a gain of 1.7%. – Stevens
- HSBC upgraded Carnival Cruise Line to buy from hold.
- Stifel downgraded Lyft to hold from buy.
- SunTrust downgraded Conagra Brands to hold from buy.
- Citi downgraded Monster Beverage to neutral from buy.
- BMO downgraded Yelp to market perform from outperform.
- Morgan Stanley resumed AbbVie as overweight.
- Susquehanna downgraded Redfin to neutral from positive.
- Needham raised its price target on Nvidia to $360 from $270.
9:33 am: Tudor Jones says US could have a 'Second Depression' if lockdown remains in place a year from now
Hedge fund investor Paul Tudor Jones said if the coronavirus pandemic doesn't get contained for another year and the lockdown remains in place, the economy would be in a "Second Depression." "If a year from now, we are still in the same situation, we would be called a Second Depression," Jones said on CNBC's "Squawk Box" on Monday. "Just depends on whether unfortunately this goes to a year with this kind of a lockdown." The Great Depression from 1929 to 1939 was the worst economic downturn in U.S. history. The founder and chief executive officer at Tudor Investment said because of how America feels about individual freedoms, the country may have trouble following contact tracing and other methods used by other nations to contain the virus quickly. "If you look at the Asian countries that are succeeding and beating this, they are doing it because they place a much greater emphasis on society values than they do on individual rights," Jones said. "Americans are too different. I don't think we would be able to come together and do that." –Li
Stocks moved lower out of the gate on Monday as global economies continue to grapple with how to open back up safely amid the pandemic. The Dow lost 211 points for a decline of 0.9%. The S&P 500 and Nasdaq Composite fell 0.8% and 0.7%, respectively. – Stevens
Treasury Secretary Steven Mnuchin said Monday that he agrees with Elon Musk as the company looks to restart its operations. "I agree with Elon musk. He's one of the biggest employers and manufacturers in California, and California should prioritize doing whatever they need to do to solve those health issues so that he can open quickly and safely, or they're going to find as he's threatened he's going to move his production to a different state." - Stevens
Hedge fund manager Paul Tudor Jones said on "Squawk Box" that actions by the Federal Reserve helped fuel the rally in stocks over the past six weeks but the U.S. will need to make more progress on the health care front for stocks to push higher. "I think this part of the bounce was easy to forecast, I think what happens from here again depends a lot on Covid stuff. There'll be a shift in focus from liquidity issues somewhere down the line to solvency issues.If we don't find a vaccine or a cure, if we don't find a much better way of testing at scale ... then I think the market's going to have a much more difficult time," Jones said. Jones said in late March, shortly after the most recent low for the S&P 500, that he expected stocks to rise over the coming months. —Pound
Hedge fund manager Paul Tudor Jones said Monday that nearly 2% of his assets are in bitcoin, noting that Wall Street could be seeing the "birthing of a store of value" through the digital currency. "It's a great speculation," Jones told CNBC's "Squawk Box." "If you take cash, on the other hand, and you think about it from a purchasing power standpoint: If you own cash in the world today, you know your central bank has an avowed goal of depreciating its value 2% per year," he added. "So you have, in essence, a wasting asset in your hands." Jones also said he owns gold as well. —Imbert, Franck
Oil prices jumped, erasing earlier losses, after Saudi Arabia said it will cut production for June by an extra 1 million barrels per day. This brings the country's June production down to 7.5 million barrels per day. West Texas Intermediate futures were up 2.1% at $25.31 per barrel after trading lower earlier in the session. —Imbert
The White House is negotiating with congressional leaders about more fiscal relief but is waiting to see what happens as more states open. Larry Kudlow, director of the National Economic Council, said Sunday on ABC's "This Week" that the administration is waiting until late May or early June to move forward. "It's not that we're not talking. We are. It's just informal at this stage," he said. As the coronavirus growth rate has slowed, states have started to reopen. Economies worth about 65% of U.S. GDP will start coming back online partially by the end of this week, according to Citigroup.
The S&P 500 could revisit its late-March lows if the broader-market index does not clear a key area of technical resistance, according to BofA Securities Stephen Suttmeier. Last week's gains put the S&P 500 "back at the 61.8% retracement of the February-March decline at 2934 with the 4/29 peak near 2955, which is just ahead of big resistance at 3000-3027 (200-day MA and late 2019 breakout point). If the 3000-3027 resistance holds, the SPX is likely to correct its advance from late March," Suttmeier said. —Imbert, Bloom
Shares of cruise stocks and airlines came under pressure during Monday's premarket trading, as these industries contine to feel the impacts of the global pandemic. Carnival Corp., Norwegian Cruise Line and Royal Caribbean Cruises all fell roughly 3%, while Delta Air Lines and United Airlines also traded 3% lower. These stocks have been subject to wild swings as the pandemic has taken hold, since they are so closely tied to shelter-in-place restrictions easing, among other things. –Stevens
The coronavirus pandemic continued to spread, with Russia and India announcing their new largest daily increases in confirmed cases and South Korea ordering some bars and nightclubs to close again after a spike in cases was linked to those businesses.Confirmed cases are also growing in Brazil, which has more than 162,000 and may soon pass Germany and France in total cases, according to data from Johns Hopkins University.As of Monday morning, there were more than 4.1 million confirmed cases of the virus around the world and at least 283,001 deaths, according to data from Johns Hopkins University. —Pound
Shares of Under Armour dropped 4% during Monday's premarket trading after the company said sales fell 23% in the first quarter as stores were forced to close due to the coronavirus pandemic. For the quarter, Under Armour reported an adjusted loss of 34 cents per share, on revenue of $930.2 million. The company said it plans to cut costs by $325 million in 2020. –Stevens
U.S. stock futures fell Monday amid concerns that the global economy may be reopening too soon. Dow Jones Industrial Average futures traded 150 points lower, or 0.6%. S&P 500 and Nasdaq 100 futures slid 0.7% and 0.3%, respectively. Those declines came after the Dow and S&P 500 posted back-to-back gains while the Nasdaq Composite was riding high after a five-day winning streak. South Korea warned of new coronavirus cases clustered in night clubs while Singapore and Japan reported new cases. —Imbert
—With reporting from CNBC's Michael Bloom, Yun Li, Jeff Cox, Nate Rattner, Maggie Fitzgerald and Tom Franck.
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