After a wild overnight session that saw stock futures whipsaw on contradicting comments on the China trade deal, the market is aiming for a second day of gains this week, boosted by strong momentum in shares of big tech companies. The Nasdaq Composite hit an all-time high as Apple reached a record amid bullish comments about its latest announcements.
The U.S. markets lost steam late in the session but still finished higher on Tuesday, led by the tech-heavy Nasdaq up 0.7%. The Dow gained 150 points, or 0.5%, while the S&P 500 rose 0.4%. —Pound
The major averages were headed for another day of solid gains Tuesday, as shares of major tech companies outperformed. The Nasdaq Composite rose more than 1%, putting the index on pace for its eighth straight day of gains. The Dow traded more than 200 points higher while the S&P 500 advanced 0.8%. —Imbert
The number of advancing stocks at the New York Stock Exchange was double that of declining issues as the market rallied on Tuesday. Overall, 1,866 NYSE-listed stocks were positive while 981 declined, according to FactSet. —Imbert
Wall Street analysts said it's likely some asset allocators, like pension funds, would take profits from the stock market and shift to bonds at their quarter-end rebalancing a week from now. The amount of pension fund rebalancing is estimated in a wide range, with projections from $35 billion to $76 billion. "The end of the quarter is going to be pretty interesting, given how much the market has moved during this quarter. There could be volatility here," said Dan Deming, managing director at KKM Financial. -- Domm, Li
Around midday, the major averages were sharply higher as Apple led a cluster of major tech companies. The Dow advanced 240 points, or 0.9%, while the S&P 500 climbed 1%. The Nasdaq Composite gained 1.4% and hit an all-time high. —Imbert
The firm reiterated its overweight rating and $535 price target on Tuesday morning, saying recent data showed user growth has been "stable" which "we believe suggests continued strong engagement and healthy subscriber retention," the analyst wrote. The analyst also said if there is additional "upside" it's likely from the streaming giant seeing robust download growth internationally. The stock is up 4% this week. — Bloom
The iShares MSCI Mexico ETF (EWW) — which tracks a group of Mexican stocks — came off its highs after reports surfaced of an earthquake being felt in the country. The ETF was up as much as 2.4%; it traded about 1.3% higher around 11:45 a.m. —Imbert
Data compiled by RBC's Lori Calvasina showed stocks could be in some trouble over the next year given how overvalued the market is. Calvasina said S&P 500 valuations were tracking at 1.64 standard deviations above their long-term average. On average, according to the data, the S&P 500 posts low single-digit losses one year out when valuations are this far above their long-term average. "Valuations are a clear negative for the US equity market," said Calvasina. —Imbert
Sales of new U.S. single-family homes jumped 16.6% to a seasonally adjusted annual rate of 676,000 units in May, the Commerce Department said on Tuesday. April's sales were revised down to 580,000 units from the previously reported 623,000 units. The latest data suggested the housing market is in the midst of recovery after being hammered by the coronavirus pandemic. —Li
The firm said investor's have "not paid much attention to EIDD-2801, an oral antiviral for the treatment of patients with COVID-19," analyst David Risinger said of overweight rated Merck. Coronavirus patients can "could take this oral after initial diagnosis to reduce disease severity and risk," he said. "We think that investors under-appreciate Merck/Ridgeback's oral antiviral candidate for COVID-19, which has blockbuster potential if successful." Shares are up 2% in early trading. —Bloom
Shares of the Pennsylvania-based casino operator jumped more than 10% on Tuesday after CEO Jay Snowden said it has resumed operations in 30 of Penn National's 41 properties and has plans to open the rest in the "coming weeks." Snowden was joined by Barstool Sports founder Dave Portnoy on CNBC's "Mad Money" on Monday. Portnoy made a long-term play when he sold a 36% stake in Barstool to Penn in January in a deal worth $450 million. Barstool will launch a sportsbook as part of the deal, and he expects it will be a "dominant player in the game" and an additive to the casino operator. "I can't be more confident in what we're building. Obviously, I'm biased, but I put my money where my mouth is," Portnoy said. — Fitzgerald
The U.S. manufacturing PMI (purchasing managers' index) jumped to 49.6 in June, a four-month high and a sharp rebound from 39.8 in May, according to IHS Markit. Any reading below 50 signals a contraction. On the services side, the IHS PMI rose to a reading of 46.7 in June, versus 37.5 in May. The improvement signaled an easing in the economic downturn as the lockdown started to lift. "The second quarter started with an alarming rate of collapse but output and jobs are now falling at far more modest rates in both the manufacturing and service sectors," Chris Williamson, chief business economist at IHS Markit, said in a statement. "The improvement will fuel hopes that the economy can return to growth in the third quarter." —Li
Stocks rose out of the gate on Tuesday, following assurances from the White House that the U.S.-China trade deal is still on. The Dow rose 227 points for a gain of 0.88%. The S&P 500 and Nasdaq Composite advanced 0.83% and 0.73%, respectively. Retailers and Big Tech were among the sectors fueling the market's jump. - Stevens
President Donald Trump favors sending a second round of stimulus to Americans as the country fights through the recession, according to a Washington Post report. Congressional Republicans, though, may not be as willing to go along this time around, the report said, citing three sources familiar with the thinking inside the White House. As the national economy shut down to battle the coronavirus spread, Congress quickly pushed through $1,200 checks to individuals as part of a more than $2 trillion rescue package. Lawmakers have been negotiating since then over what a second round would look like, but another measure is unlikely to pass until sometime in July. – Cox
Shares of American Airlines fell 5.4% in premarket trading on Tuesday, after losing 6.7% in the previous session. The sharp declines came as the airline company moved to raise about $2 billion through convertible and secondary stock offerings to improve its liquidity as the company grapples with the coronavirus disruptions. The company on Tuesday priced an offering of 74.1 million shares at $13.50 a share and an offering of $1 billion of convertible bonds that mature in 2025 at 6.50%. Shares of American Airlines are down nearly 48% this year. –Li
Shares of Tesla are trading at more than $1,000 per share before the bell. Morgan Stanley's Adam Jonas said in a new note that investors may be forgetting the difficulties and risks of the electric car company's business that differentiates it from tech giants, which could lead to a big pullback.
Following a volatile overnight session, oil prices moved higher during morning trading after reassurance from the White House that the U.S.-China trade deal remains intact. West Texas Intermediate, the U.S. oil benchmark, rose 79 cents, or 1.9%, to trade at $41.52 per barrel. Earlier in the session WTI touched a low of $39.90. International benchmark Brent crude gained 83 cents to trade at $43.91 per barrel, after hitting a session low of $42.21. "Prices rose further on the relief that the US-China trade status remained intact and on indications that despite Covid-19 infections increasing, road fuel demand and global traffic are still standing strong," said Bjornar Tonhaugen, Rystad Energy's head of oil markets. On Monday, WTI settled above the key $40 mark for the first time since March. – Stevens
Retail stocks moved higher on Tuesday morning as futures pointed to a strong open for the broader market. Kohl's gained 2.3% in premarket trading, while discount retailer Five Below climbed 2.1%. Simon Property Group, the country's largest mall owner, rose 2.7%, and apparel giant Nike moved 2.2% higher. —Pound
Shares of JPMorgan Chase, Citigroup, Wells Fargo and Bank of America all rose as the market was set to add to Monday's solid gains. All four of those stocks gained more than 2% in premarket trading. Banks have caught a bid over the past month amid mounting bets on the global economy reopening, which would theoretically increase consumer spending and help these companies. —Imbert
White House trade advisor Peter Navarro spooked the markets last night by casting doubt on the China trade deal.
Navarro's original comment came during a Fox News interview, when the trade advisor listed the complaints the White House has with Beijing over its handling of the Covid-19 outbreak. He was then asked about the trade deal: "Given everything that's happened and all the things you just listed, is that over?" "It's over," Navarro replied.
U.S. futures sank after the comments. The trade advisor then walked back his comment, saying his words were taken "wildly out of context" and reassured that the deal is, in fact, not over. President Donald Trump also weighed in following Navarro's Monday interview, writing on Twitter that "The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!" Futures then recovered.
The about-face from the White House and whipsaw in equity futures highlight the fragility of the accord struck between the globe's two largest economies earlier this year. Tensions have been rising between the U.S. and China in recent months over the origins of the coronavirus pandemic and Beijing's influence over Hong Kong. — Franck
Shares of Peloton jumped more than 2% during Tuesday's premarket trading after Cowen raised its target on the stock to a Street high of $70, which is roughly 32% above where shares closed on Monday. The firm, which has an outperform rating on the stock, previously had a $54 target. "PTON remains uniquely well positioned via its vertically integrated model comprising … the pandemic has created a virtuous cycle driving both increased hardware demand as well as a surge in engagement and lower monthly churn levels (0.46% in F3Q)," analyst John Blackledge wrote in a note to clients. Shares of the exercise equipment maker have gained 86% this year. – Stevens
Apple shares rose more than 1% in the premarket following a slew of announcements from the tech giant at its annual WorldWide Developers Conference. The tech giant revealed iOS 14, a new operating system for its flagship iPhones and MacOS Big Sur, a new OS for its computers. Apple also said it will start using its own chips for its Mac computers, ditching Intel. Apple's premarket gains put the stock on track to hit an all-time high at the open. — Imbert
U.S. stock index futures pointed to sharp gains at the open following comments from the White House that the U.S.-China trade deal remains in place. The Dow Jones Industrial Average was set to jump 268 points at the open for a gain of 1%. Futures on the S&P 500 were up 0.9%, while Nasdaq-100 futures gained 0.7%.
Earlier Dow futures had plunged about 400 points after White House trade adviser Peter Navarro said that the deal was "over." However, futures rebounded after he clarified his comments, saying that they were taken "wildly out of context." President Donald Trump also weighed in on Twitter, saying the deal is "fully intact."
Stocks rose during Monday's session as the market looked toward the economy's reopening, although a rising number of Covid-19 cases in the U.S. and abroad capped the upside. The Nasdaq was the relative outperformer, and the tech-heavy index closed at a new record high. - Stevens
- CNBC's Jesse Pound, Yun Li, Patti Domm, Jeffrey Cox and Michael Bloom contributed reporting.
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