Stock market live Tuesday: Dow drops 300, Nasdaq briefly tops 10,000, S&P negative for the year
U.S. equities put their recent comeback rally on hold on Tuesday, dragging down the Dow Jones Industrial Average and S&P 500. Investors ditched reopening plays for the technology darlings, bringing the Nasdaq Composite to a new record high. The U.S. Federal Reserve started its two-day monetary policy meeting.
Here's what happened:
4:26 pm: The Nasdaq Composite hits new milestones
- The Nasdaq Composite closed up 0.29% for its seventh straight positive day in eight, hitting a new intraday and closing high
- The Nasdaq crossed 10,000 for the first time ever at its high, hitting 10,002.5
- Apple and Amazon had double-digit point contributions, with each stock rising to a new all-time high
- The Nasdaq has rallied 50.1% from its 52-week low of 6,631.42
- The most positive sector was tech, which gained 0.48%. - Francolla
4:00 pm: Dow ends 6-day win streak, Nasdaq touches 10,000
The Dow Jones Industrial Average fell 300 points on Tuesday, snapping a six-day winning streak, as big losses in Boeing and Walgreens dragged down the 30-stock average. The S&P 500 dipped 0.78% after turning positive briefly for the year in the previous session. The tech-heavy Nasdaq Composite outperformed, rising 0.3% to a new record close and briefly breaking above 10,000 for the first time. –Li
3:07 pm: One hour to the close: Dow on pace to snap win streak despite Nasdaq record
Dow Industrials were set to snap their six-day winning streak on Tuesday as a pause to the "reopening rally" left Boeing, Caterpillar and IBM all down at least 2.5% each. The S&P 500 followed suit with the broad index down 0.5% with an hour left in the session. The Nasdaq Composite, the lone index to trade higher, gained 0.5% as popular names like Amazon, Apple and Facebook rallied. The Nasdaq clinched a record high north of 10,000 earlier in the day but had since moved off that level. -- Franck
2:45 pm: Paul Tudor Jones says inflation is the U.S. economy's next threat
Longtime hedge fund manager Paul Tudor Jones said Tuesday that he believes the next biggest threat to the U.S. economy is a wave of inflation sparked by supportive monetary and fiscal policy. He added that the Federal Reserve will be hard-pressed to keep prices in check given the outsized debt load of the U.S. government; to hike interest rates could make the debt load even more expensive."We just had the shortest peak to trough recession in history, we just had the shortest bear market in stocks in history, we just had the greatest recovery in history ... I think there's a real case to be made that the real threat down the road, particularly in the United States ... is inflation," Jones told the Economic Club of New York via videoconference.— Franck
1:50 pm: Nasdaq Composite hits 10,000 milestone
The tech-heavy Nasdaq Composite rose 0.7% to above 10,000 for the first time ever in afternoon trading. The rally to a new record was fueled by solid gains in big internet companies. Shares of Apple and Amazon both jumped more than 3% to new all-time highs, while Netflix and Facebook gained 2.9% and 3.4%, respectively. —Li
1:40 pm: Cloudera spikes after report about possible sale
Shares of Cloudera jumped sharply, leading to a brief halt in trading, after Bloomberg News reported that the company has received interest about a possible takeover. The company has talked to private equity firms about a potential deal, according to the report. The stock has now risen about 18% for the day. — Pound
1:33 pm: NYSE decliners lead advancers 4-1
Roughly four stocks traded lower for every advancer at the New York Stock Exchange as Wall Street's blistering rally to kick off June took a breather. Overall, 2,291 NYSE-listed names declined while 574 rose. Those moves came as traders rotated out of stocks that benefit from the economy reopening fell broadly while major tech shares climbed. —Imbert
1:08 pm: Shares of Vroom skyrocket in public debut
Shares of online used car seller Vroom more than doubled in its first day of trading after its initial public offering on Tuesday. The stock surged more than 115% to above $46 a share in afternoon trading. Vroom priced its IPO at $22 per share, which came in above its price range of $18 to $20 per share. –Li
12:43 pm: Deutsche Bank raises price target on Apple to $350 from $320
Bloomberg News reported this morning that Apple may begin using its own chips instead of Intel's in its Mac computers, but Deutsche Bank said it's unlikely. "Overall, we continue to monitor this shift and doubt that the entire Mac notebook line shifts to ARM in 2021 as the performance envelope is unlikely to be broad enough initially to support such a shift," analyst Jeriel Ong said. ARM is the design architecture in which Apple bases its chips on. "With the profit improvement in the Mac line-up high (as much as 40-60% savings from a shift to ARM), we raise our P/T to $350," he said. — Bloom
12:10 pm: Markets at midday: Reopening trade falls, drags down the broader market
The Dow and S&P 500 were under pressure on Tuesday as stocks benefiting from the economic reopening fell broadly. The Dow slid 270 points, or about 1%, while the S&P 500 dropped 0.8%. The Nasdaq Composite, meanwhile, eked out a small gain as major tech names such as Facebook, Amazon, Apple, Netflix and Alphabet all rose. —Imbert
11:43 am: Boeing becomes biggest loser in 30-stock Dow Tuesday
Shares of Boeing dropped more than 4% around midday trading on Tuesday, becoming the biggest laggard in the Dow Jones Industrial Average. The decline in the plane maker knocked down about 72 points in the 30-stock average, which was down 270 points. Boeing's stock fell after the company said its aircraft cancellations in May continued to outpace new business as the coronavirus pandemic roils the air travel industry. —Li
11:03 am: FAANG names rally again, capping losses in broader market
Investors flocked to big technology stocks once again with Amazon, Netflix and Facebook all gaining at least 2% on Tuesday, limiting the losses in the broader market. Google parent Alphabet rose 1%, while Apple also climbed 1.7%. The so-called FAANG stocks had recently lagged behind as rotation out of internet stay-at-home bets went underway, but investors returned to the safety of megacap growth stocks on Tuesday as the market comeback rally took a pause. The gains in these big tech names pushed the Nasdaq Composite into positive territory in morning trading, marking the only major U.S. benchmark in the green. The tech-heavy index hit a new all-time high on Tuesday after closing on a record in the previous session. –Li
10:57 am: Cramer says he's 'never seen so many games played with stocks'
On "Squawk on the Street," Jim Cramer urged investors to avoid the volatile stocks that are being discussed by speculators on social media. "Please be careful when you see a reference in Twitter which says 'we're taking up Hertz' or 'get on board the Chesapeake train,'" Cramer said. "Because you're not going to be the one that makes the big money. You're likely going to be the one that loses the big money." —Pound
10:55 am: Opposite day for stocks
Certain companies with huge gains on Monday are tanking on Tuesday, as well as the opposite moves. Transocean, which gained 50% on Monday, is down 24.8% on Tuesday. Cosmetic company Coty gained over 22% on Monday but is down 12.6% Tuesday. Royal Caribbean gained over 8% on Monday but and is down almost 9% Tuesday. Michaels gained 58.6% on Monday for its best day ever and is down almost 19% Tuesday. — Francolla
10:10 am: Apple and Amazon hit record highs
Shares of Apple and Amazon hit fresh all-time highs as traders sold some of their holdings in stocks benefiting from the broader economic reopening. Apple traded 0.9% higher along with Amazon shares. Those gains put Apple up more than 14% for 2020 and Amazon up 37.9% in that time. —Imbert
9:43 am: Here are Tuesday's biggest analyst calls of the day: Amazon, Dick's, Facebook & more
- Wells Fargo raised its price target on Amazon to $3,000 from $2,725.
- Barclays upgraded Zynga to overweight from equal weight.
- Bank of America raised its price target on Amazon to $3,000 from $2,600.
- Goldman Sachs raised its price target on Facebook to $250 from $220.
- BTIG initiated The RealReal as buy.
- Wells Fargo upgraded eBay to equal weight from underweight.
- Bernstein downgraded Biogen to market perform from outperform.
- RBC downgraded KB Home to sector perform from outperform.
- Bank of America upgraded Occidental Petroleum to buy from neutral and downgraded Chevron to neutral from buy.
- Guggenheim downgraded T-Mobile to neutral from buy.
- Oppenheimer upgraded Dick's Sporting Goods to outperform from perform.
- Morgan Stanley initiated Match Group as overweight.
Pro subscribers read more here. —Bloom
9:31 am: Stocks open in the red, Dow down 300 points
U.S. equities fell at the opening bell on Tuesday, as investors halted their enthusiasm about the economy reopening. The Dow Jones Industrial Average fell about 340 points, or 1.3%. The S&P 500 ticked 1.12% lower and the Nasdaq Composite fell 0.6%. The S&P 500 went slightly negative for the year. —Fitzgerald
8:55 am: Secular bull market 'remains alive," BofA says
Bank of America's Stephen Suttmeier pointed to several factors showing the secular bull market "remains alive" as the S&P 500 is within reach of upside projection levels above 3,200. "While fear may still rule the day, the S&P 500 appears to be on healthier footing today than before the 2020 correction as leadership broadens and indicators, rotation and cross-asset price action confirm the rally's legitimacy," said Suttmeier, the bank's technical research strategist. —Imbert
8:15 am: Bank of America clients sold stocks last week
Bank of America Securities clients sold $3.2 billion in U.S. equities last week while the S&P 500 gained nearly 5%. The clients bought ETFs and sold single stocks for the fifth straight week. "Selling was broad-based across client groups, where hedge funds and retail clients have been sellers for the last eight and five consecutive weeks, respectively," Bank of America equity and quant strategist Jill Carey Hall said in a note. "Financials led the outflows last week with its second-largest selling in our data history since 2008 — consistent with the record low investor positioning." — Fitzgerald
7:57 am: Fed kicks off meeting, with few changes in policy expected
The Federal Open Market Committee begins its two-day meeting Tuesday with markets watching for news on several fronts. The Fed's policymaking body is unlikely to make any major policy changes, with its benchmark rate near zero and the asset purchasing programs continuing. However, investors will be watching for thoughts on possibly implementing yield caps and strengthening forward guidance on how long the Fed will keep current policies in place. The meeting concludes Wednesday with the release of a policy statement and the quarterly summary of economic projections, then Chairman Jerome Powell's news conference. – Cox
7:34 am: Macy's surges premarket on better-than-expected preliminary earnings
Shares of retailer Macy's soared more than 11% in premarket trading after the company reported better-than-expected preliminary earnings. The department store reported a loss of $2.03 per share, while Wall Street analysts were expecting a loss of $2.34 per share, according to Refinitiv. Revenue also beat estimates coming in at $3.02 billion. Analysts forecast $3.01 billion. Shares of the retailer are down about 43% in 2020. — Fitzgerald
7:27 am: Airlines, cruise lines drop premarket
Investors shifted away from stocks that are expected to benefit from the economy reopening on Tuesday. Airlines and cruise lines have been on a tear as market participants bet on a return in travel demand; however, the equities fell in premarket trading on Tuesday. American Airlines fell 7% before the bell. Delta Air Lines and Alaska Air Group both dropped more than 4%. United Airlines and Southwest both fell about 3.9%.
Cruise operators also ticked lower in premarket trading on Tuesday. Carnival Corp. and Royal Caribbean fell more than 4% and Norwegian Cruise Lines dropped about 3.8%. —Fitzgerald
7:00 am: Equities' rally hits pause
U.S. equity futures fell on Tuesday as investors pulled back on riskier assets after a major comeback for stocks from the coronavirus market rout. The Dow Jones Industrial Average futures fell 320 points and the S&P 500 futures fell about 26 points. Nasdaq Composite futures indicated a drop of 41 points at the open. Reopening plays — airlines, cruise lines and retailers — ticked lower in premarket trading.
Investors are awaiting the U.S. Federal Reserve's two-day monetary policy meeting starting later in the day on Tuesday.
On Monday, all three major averages registered sharp gains. Most notably, the S&P 500 went positive for the year. The Nasdaq Composite notched a new record high. The Dow Jones Industrial Average jumped more than 450 points.
— with reporting from CNBC's Thomas Franck, Jeff Cox, Jesse Pound, Pippa Stevens and Michael Bloom.
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