U.S. equities rose sharply on Monday to start the first full trading week of the third quarter and second half of 2020. All three major averages were in the green, shrugging off an increase in coronavirus cases in the U.S. and abroad. Technology stocks led the Nasdaq Composite to an intraday record high.
- The Dow gained 460 points, or 1.78%, its fourth positive session in five
- Dow impact: Goldman Sachs had the most positive impact on the Dow, adding 64 points to the index
- The S&P 500 gained 1.59%, its fifth straight positive session
- Ten of 11 S&P Sectors were positive in Monday's session, led by consumer discretionary, up 3.21%. Utilities was the laggard, up down 1.28%.
- The Nasdaq Composite gained 2.21%, its fifth positive session in a row
- The NASDAQ-100 gained 2.53%, its best daily performance since April 29
- The Russell 2000 gained 0.77%, its fourth positive session in five. —Hayes
Younger investors are more likely to buy reopening stocks like cruise lines and sell stocks like Netflix, TD Ameritrade's JJ Kinahan said on "Closing Bell." "They seem to be more optimistic about the economy overall," said Kinahan, the firm's chief market strategist. He also said that less-experienced investors may be more likely to take profits in winners earlier than they should. —Pound
The market rallied into the close with the Dow climbing about 450 points and the S&P 500 gaining 1.5%. The tech-heavy Nasdaq Composite jumped 2.2% to an all-time high, lifted by a 5.7% pop in Amazon shares, which closed above $3,000 apiece for the first time ever. Netflix also gained more than 3% to a record high. — Li
- Gold (AUG) gained 0.20% to settle at $1,793.5, its fifth positive session in six.
- WTI (AUG) fell 0.05% to settle at $40.63, breaking a two-day win streak. WTI is currently in bear market territory, 38.11% off its 52-week high of $65.65 hit on Jan. 8.
- Brent (SEP) gained 0.70% to settle at $43.10, its third positive session in four. --Hayes
With one hour left in the trading session, the Nasdaq Composite was on pace for a record close as shares of Amazon and Netflix led Big Tech higher. The Nasdaq traded about 2% higher while the Dow and S&P 500 gained more than 1% each. —Imbert
China's state media urged investors to go back into an already exuberant Chinese stock market, saying fostering a "healthy bull market" is important. Many strategists attributed a strong rally in Chinese markets to a front page editorial in state-owned China Securities Journal, which said investors should look forward to the "wealth effect of the capital markets." Shanghai stocks jumped 5.7% following the publication, which partly boosted sentiment in global equity markets. The iShares China Large-Cap ETF surged nearly 9% on Monday. —Domm, Li
Texas reported a record of more than 8,000 hospitalized Covid-19 patients on Sunday, according to a CNBC analysis of data compiled by the Covid Tracking Project. Meanwhile, the number of people hospitalized with Covid-19 grew by 5% or more Sunday in 23 states, based on a seven-day moving average, according to data compiled by the Covid Tracking Project. California, Arizona, Nevada and Georgia have also seen growing coronavirus hospitalizations. -- Noah Higgins-Dunn
The number of New York Stock Exchange-listed names was double that of declining issues as Wall Street builds on last week's sharp gains. Overall, 1,877 NYSE stocks traded higher and 992 fell, according to FactSet data. —Imbert
The Nasdaq Composite traded at an all-time high on Monday as major tech stocks — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — all climbed. The index was up more than 2% around midday. The Dow and S&P 500 also got a lift, gaining 364 points and 1.6%, respectively. —Imbert
Shares of the major technology stocks led the market higher on Monday. Amazon, which is trading above $3,000 per share for the first time, and Netflix rose 4.7% and 4.6%, respectively. Both stocks hit all-time highs on Monday. Microsoft jumped 2.2% and Apple rose more than 3%. Facebook reversed earlier losses and traded 2.5% higher. Adding to the euphoria, shares of Tesla jumped more than 10%, after JMP Securities projected Tesla will generate $100 billion in annual revenue by 2025. — Fitzgerald
Companies have returned or canceled more than $30 billion in loans approved through the government's emergency Paycheck Protection Program, a senior administration official said Monday. The multibillion-dollar sum shows that the vast majority of the returned funds came from private companies; public companies have only returned $430 million, according to data analytics firm FactSquared. The Small Business Administration also reported a partial list of the companies that received the PPP relief loans through June 30. President Trump on Saturday extended the deadline to apply to the PPP through Aug. 8. — Franck
JPMorgan reiterated its overweight rating ahead of Levi's earnings results on Tuesday and said the company should benefit from "increased casualization" as the coronavirus continues. "Investors will be focused on product category trends and how denim has performed through COVID-19 and how mgmt. sees consumers preference for denim changing post-pandemic w/ bottoms >70% of Levi's sales w/ mgmt noting no 'zoom effect' or changing mix in business in China or US as of early April," analyst Matt Boss said. The firm also said e-commerce was a relatively "small" part the company's sales but that the company had recently accelerated investments in its digital operations. Shares of the company are up over 3% in midday trading. — Bloom
Shares of e-commerce giant Amazon traded above the $3,000 level for the first time on Monday. The stock rose more than 3%, alongside the broader market. The Jeff Bezos-led juggernaut has rallied more than 60% this year as millions of Americans stocked up on food and household items during the quarantine, while avoiding physical stores. — Fitzgerald
Canaccord said on Monday that Netflix's leadership content position is "poised to persist," analyst Maria Ripps wrote. "Additionally, we see the potential for upside to estimates as consumers shift discretionary spend away from out-of-home activities such as movie theaters, concerts, and sporting events, and more towards in-home entertainment like subscription video on deman" she said. "Longer term, we expect a continued shift from linear TV consumption to digital over-the-top platforms, and we see Netflix's extensive library of content creating a strong competitive moat amidst a favorable industry backdrop." Shares of the streaming giant are up 3.6% in early trading. —Bloom
The Institute for Supply Management's nonmanufacturing index rose more than expected in June and signaled the first expansion within the sector in three months. The index jumped to 57.1 last month, topping a Dow Jones estimate of 50.1. It was also the biggest month-over-month increase for the index on record. —Imbert
- Goldman Sachs downgraded Intel to sell from neutral.
- Imperial downgraded Netflix to in line from outperform.
- Bernstein downgraded Spotify to underperform from market perform.
- JMP raised its price target on Tesla to $1,500 from $1,050.
- Citi initiated Harley-Davidson as buy.
- Baird raised its price target on Zoom to $300 from $230.
Pro Subscribers read more here. — Bloom
The Nasdaq Composite hit a fresh all-time intraday high on Monday at the open, its 26th all-time high of 2020. The technology-heavy index is now on pace for its fifth positive session in a row for the first time since its eight-day streak ending June 18. The Nasdaq-100 also hit a new all-time intra-day high at the open. — Fitzgerald, Hayes
To start off the first full week of the third quarter, stocks opened with sharp gains. On Monday, the Dow Jones Industrial Average jumped 360 points, or 1.4%. The S&P 500 and Nasdaq Composite rose 1.4% and 1.5%, respectively. — Fitzgerald
President Donald Trump warned Monday morning that Joe Biden's election could cause American 401(k)s and stocks to "disintegrate and disappear" thanks to the Democrat's proposed policies. Trump, who lags Biden in national polls by 8.7 percentage points, took to Twitter to berate what he categorized as his opponent's plan for "massive tax hikes." To be sure, stocks have continued to march higher even as Biden's lead increases in the polls. And JPMorgan noted to clients Monday that a Democratic win in November would be neutral to slightly positive for markets. — Franck
Shares of companies that would benefit most under a U.S. reopening outpaced the broader market before the opening bell Monday morning. Mall operator Simon Property Group jumped 3% while Kohl's and Gap rallied 2.5% and 3.5%, respectively. Airlines Delta, Southwest and United all gained about 2.5%. Expedia and TripAdvisor both added 2.5%. — Franck
JMP Securities raised its price target on Tesla, saying in a note to clients that the company's better-than-expected second quarter deliveries showed that it was on track to continue its growth. The firm projected Tesla will generate $100 billion in annual revenue by 2025. The automaker's stock jumped 6% in premarket trading.
Pro subscribers can read more about the note here. —Pound
Shares of Intel fell 0.4% in premarket trading after Goldman Sachs downgraded the stock to sell from neutral. The bank said in a note to clients that its channel checks have showed the personal computer market slowing and Intel losing market share in other business lines. —Pound
Asia stock indexes roared higher Monday morning after the China Securities Journal touted stocks and said investors will feel "the wealth effect of the capital markets." The state media publication also emphasized the importance of a "healthy" bull market. The China Shanghai indexes were up around 6% and the Nikkei 225 in Japan rose 1.8%. "When looking at markets in the coming 5-10 years, I'm bullish on emerging Asia and believe stocks in that region of the world will outperform everywhere else during that time frame after 10 years of underperformance," said Peter Boockvar, chief investment officer at the Bleakley Advisory Group. – Cox
Bullish sentiment on Wall Street is against a backdrop of rising coronavirus cases at home and abroad. The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed over a 24-hour span, a record. The largest spike was seen in the Americas, where nearly 130,000 new cases were confirmed. Florida and Texas reported daily record spikes of 11,445 and 8,258, respectively, on Saturday. – Fitzgerald
Berkshire Hathaway is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy, marking the conglomerate's first deal since the coronavirus crisis and its biggest purchase in years. Including the assumption of debt, the deal totals almost $10 billion. With the deal, Dominion is transitioning to a pure-play regulated utility company that focuses on clean energy production from wind, solar and natural gas. Prior to the announcement, Warren Buffett revealed that Berkshire had built up a record $137 billion cash hoard and he was looking to make an "elephant-sized acquisition." —Li
Uber agreed to purchase food-delivery service Postmates, the two companies said Monday. Postmates is the fourth-largest U.S. food delivery service by market share. The company has had success in specific urban areas such as Los Angeles and Miami. — Fitzgerald
Shares of ride hailing giant Uber rose 6.5% in premarket trading on Monday following multiple reports that Uber has agreed on a deal to buy food delivery service Postmates in a $2.65 billion stock deal. Earlier this year, Uber was in talks to buy Grubhub; however, the deal never materialized and Grubhub was purchased by Europe's Just Eat Takeaway.com. —Fitzgerald
U.S. equity futures traded sharply higher on Monday, extending last week's strong performance to start to second half of the year. Dow futures rose about 345 points, or 1.3% The move implied a higher open by about 400 points. The S&P 500 and Nasdaq-100 futures were 1.1% higher. Stocks whose performance hinges on the reopening of the economy rose in premarket trading.
Stocks are coming off a strong start to the third quarter and second half of 2020. The Dow Jones Industrial Average and S&P 500 rose 3.3% and 4%, respectively, last week. The Nasdaq advanced 4.6% in the holiday-shortened week. — Fitzgerald
— with reporting from CNBC's Jeff Cox, Tom Franck, Patti Domm, Christopher Hayes, Michael Bloom and Fred Imbert.
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