Stock market live Monday: Amazon leads market higher, Nasdaq up 20% for year, Nikola shares tank

The Dow erased a 167-point drop on Monday to join the S&P 500 and Nasdaq Composite in positive territory. Tech's outperformance comes after a rare losing week. Traders also cheered positive coronavirus vaccine news and kept an eye on Washington as lawmakers start negotiations on further economic stimulus.

Monday's rally by the numbers

  • S&P 500 up 0.84% for its fourth positive day in five
  • S&P 500 is up 0.65% year to date
  • S&P 500 is 4.18% below its intraday all-time high of 3,393.52 from Feb 19
  • Nasdaq closed up 2.51% for its fourth positive day in five
  • Nasdaq is up 20% year to date
  • Nasdaq-100 closed up 2.88% at a new record driven by Amazon, Microsoft, Tesla, Apple and Alphabet with the most positive point impact
  • Dow closed up 0.03% for its first positive day in three
  • Dow is down 6.5% year to date
  • Russell 2000 small caps closed down 0.36%
  • Declining stocks outpaced advancing stocks 1,692 to 1,276 on the NYSE. — Gina Francolla

Tech powers big day for Nasdaq

All three indexes moved higher on Monday, with the Nasdaq leading the way at 2.5%. The S&P 500 posted a more modest gain of 0.8%, while the Dow gained just 9 points. The S&P 500 closed in positive territory for the year. — Jesse Pound

Tech moves 'truly insane,' Cramer says

Jim Cramer said in a tweet that the moves of Microsoft, Tesla and Amazon on Monday were "truly insane." Amazon effectively erased all of its losses from last week with the move. — Jesse Pound

Bank of America expects more gains for the S&P 500 this summer

Bank of America's Stephen Suttmeier expects the S&P 500 to have a "summer rally" as a slew of technical indicators signal further gains are on the horizon. The S&P 500 has rallied more than 47% since hitting an intraday low on March 23.

CNBC Pro subscribers can read more here. —Fred Imbert

Tesla rallies 7% as Wall Street awaits carmaker's June earnings, S&P 500 inclusion

Shares of Tesla popped more than 7% in afternoon trading as investors prepared for the electric car maker's June earnings later this week. Tesla, led by CEO Elon Musk, is expected to post yet another quarter of profitability when it discloses its second-quarter performance on Wednesday after the closing bell. 

The stock is up 114% over the last three months, 282% year to date and 520% over the last 12 months. The stock is up almost 50% in July alone after the company said on July 2 that it blew past Wall Street's second-quarter delivery and production numbers. Unusual options activity on Monday also revealed that some investors were snapping up calls with a strike price of $3,500 set to expire after Tesla reports earnings.

Traders are eager to see if Tesla is added to the S&P 500 if it indeed posts another (and requisite) profitable quarter. Any stock's addition to the S&P 500 can mean a flood of new demand for the equity since so many exchange-traded funds (at least $4.4 trillion in investment dollars) seek to mimic the performance of the index. — Thomas Franck

Amazon extends gains, on pace for best day since March

Amazon shares were up more than 6%, building on their earlier gains, as investors nabbed the e-commerce giant after a big price-target increase from Goldman Sachs. That surge put Amazon on pace for its biggest one-day gain since March 17, when it popped 7%. —Fred Imbert

Here are some of the biggest movers midday Monday

Moderna — Moderna was under pressure after a JPMorgan analyst downgraded the stock, citing a sky high valuation.

Amazon — Goldman Sachs hiked its 12-month price target on Amazon to a Wall Street-high $3,800 per share, putting the stock on pace to snap a five-day losing streak.

Nikola — The electric truck maker  filed for a new stock offering related to warrants, sending the stock tumbling.

Peloton — Peloton jumped after Goldman Sachs raised its price target on the stock to $84 per share, noting the company is growing its "addressable market, amplifying network effects, and increasing the consumer value proposition." —Fred Imbert

Click here to read more.

More than 16,000 Southwest employees reportedly volunteer for early retirement or long-term separation

A report from Reuters said more than 16,000 Southwest employees have agreed to early retirement or long-term separation deals as the travel industry faces tough times amid the pandemic. Shares of Southwest dropped more than 3% Monday. —Fred Imbert

Markets at midday: Nasdaq rallies as Amazon leads tech higher

Around midday, the Nasdaq Composite was the best-performing index on Wall Street as Amazon shares led broad gains among major tech names. The Nasdaq traded more than 1% higher as Amazon jumped 5.4%. Facebook, Apple, Microsoft, Netflix and Alphabet all rose as well. The S&P 500 gained 0.4% and traded higher for 2020. The Dow lagged, falling 47 points, or 0.2%. —Fred Imbert

Nikola shares tank, and Deutsche Bank sees more selling ahead

Shares of electric vehicle maker Nikola fell more than 18% on Monday after the company filed for a new stock offering of up to 53.4 million shares related to warrants. With early investors now able to trade their shares, Deutsche Bank said there could be "large technical selling pressure on NKLA stock" ahead. The firm has a hold rating and $54 target on the stock.

CNBC PRO subscribers can read more here. - Pippa Stevens

Goldman raises price target on Peloton to a Street high, shares jump 10%

Goldman Sachs raised its price target on fitness equipment media company Peloton on Monday morning and said the company is continuing to grow its "addressable market, amplifying network effects, and increasing the consumer value proposition," analyst Heath Terry said.  "With indications of sustained demand and above-average delivery wait times continuing into July despite company efforts to expand bike capacity and resume Tread deliveries on a limited basis, we expect connected fitness subscribers will exceed our prior above consensus/guidance estimates," he said. The firm also reiterated its buy rating. Shares of the company are up almost 10% in early trading. – Michael Bloom

'FANMAG' looking increasingly like a bubble, Ned Davis says

"FANMAG" — an acronym referring to Facebook, Amazon, Netflix, Microsoft, Apple and Google-parent Alphabet — looks like a bubble after the massive run-up it's had this year, said Ned Davis, founder of Ned Davis Research. "These key stocks are selling at 36 times earnings and a record six times sales. The law of diminishing returns suggests that the larger a company is, the harder it is to keep compounding high growth rates to justify these valuations," Davis said in a note, adding the broader S&P 500 has yet to confirm the surge in Big Tech. "Prior peaks in the FANMAG stocks were accompanied by peaks in the S&P 500 and S&P 494 as well. Currently, they have not confirmed." These stocks are all up more than 18% year to date while the S&P 500 remained flat in that time period. —Fred Imbert

Nasdaq climbs 1% as big tech rallies, Amazon gains 4%

The Nasdaq Composite's 1% gain outperformed both the S&P 500 and Dow Jones Industrial Average one hour into Monday's regular session. Some of the index's most-recognizable stocks led the way: Apple added 0.6%, Microsoft gained 1.7%, Alphabet advanced 2% and Nvidia popped 1.5%. E-commerce giant Amazon surged 4% and was set for its first positive day in six sessions.

The Dow and S&P 500 shed 0.1% and gained 0.4%, respectively. — Thomas Franck

Stephens raises price target on Zoom to $220 from $180

Stephens raised its price target to $220 from $180 on Zoom on Monday morning and said the online business teleconferencing company is  "experiencing strong performance across almost all segments while driving towards its goal of becoming the standard within the relatively under-penetrated enterprise cloud video/voice market," analyst Ryan MacWilliams wrote. "The myriad of unexpected use cases on Zoom since COVID has led to elevated applications growth on Zoom's App Marketplace," he said. The firm also reiterated its equal weight rating.  Shares of the company are up 5% in early trading.  —Michael Bloom

Mark Cuban warns investors riding the market comeback: 'Don't get greedy'

Billionaire businessman Mark Cuban on CNBC on Monday compared the market's big run-up from its late March coronavirus low to the 1990s tech stock frenzy. Cuban, who made billions of dollars during the dot-com boom before the bust, reminded young investors that the only way to realize stock gains is by "cashing out." "Everybody is a genius in a bull market," the "Shark Tank" investor warned in a "Squawk Box" interview. "Don't get greedy." — Kevin Stankiewicz

Amazon up more than 2%, first positive day in six

Shares of the e-commerce giant Amazon rose more than 2% on Monday, the stock's first positive day in six. The move higher is leading the Nasdaq Composite, the only of the three major averages in positive territory. Amazon's stock is getting a boost from Goldman Sachs, which hiked its 12-month price target to $3,800 per share from $3,000 per share. Goldman's new target is tied for the highest on Wall Street, equal to Brent Thill at Jefferies, according to FactSet. "We update our estimates primarily to reflect accelerating e-commerce growth in [North America]," Goldman Sachs analyst Heath Terry told clients. —Maggie Fitzgerald 

Oxford-AztraZeneca vaccine candidate successful in phase one trial, study says

A vaccine candidate developed by Oxford University and AzraZeneca produced a strong immune response in an early stage trial featuring more than 1,000 participants, according to data published Monday in The Lancet. An Oxford researcher told CNBC on Monday that the researchers hoped to begin more trials in the U.S. in the coming weeks. Shares of AztraZenecea were down slightly in early trading following the news. — Jesse Pound, Berkeley Lovelace 

Cruise line stocks up on vaccine hope

Shares of cruise line operations rose in unison on Monday after positive news on the coronavirus vaccine front boosted hope for a faster economic reopening. Carnival and Royal Caribbean gained more than 1% each in morning trading, while Norwegian Cruise jumped 3%. The cruise industry took a big hit this year as the pandemic devastated travel demand. These stocks are still all down at least 60% year to date. — Yun Li

Here are Monday's biggest analyst calls of the day: Starbucks, Amazon, Roku, Moderna & more

  • Jefferies raised its price target on Amazon to a Street high of $3,800.
  • JPMorgan downgraded Moderna to neutral from overweight.
  • Credit Suisse raised its price target on Facebook to $305 from $258.
  • Goldman Sachs raised its price target on Amazon to $3,800 from $3,000.
  • Credit Suisse upgraded Gilead to neutral from underperform.
  • Wells Fargo initiated Starbucks as overweight.
  • Credit Suisse raised its price target on Alphabet to $1,850 from $1,600.
  • Loop Capital downgraded Urban Outfitters to sell from hold.

Pro Subscribers read more here. - Michael Bloom

Stocks open flat, Dow down 30 points

U.S. equities opened around the flatline on Monday as investors digested potential vaccine developments from Pfizer and BioNTech as well as a possible second stimulus bill. The Dow Jones Industrial fell 30 points at the opening bell. The S&P 500 advanced 0.07% and the Nasdaq Composite rose 0.3%. — Maggie Fitzgerald 

Moderna drops 8% after JPMorgan downgrade

Share of Moderna slid more than 8% in premarket trading on Monday after JPMorgan downgraded the biotech firm on valuation concerns. The Wall Street firm slashed its rating on Moderna to neutral from overweight, saying it sees less upside for the stock after its massive rally this year. "We are moving to the sidelines after an impressive YTD run," JPMorgan analyst Cory Kasimov, said in a note on Monday. "At these levels we are having difficulty justifying more upside given the uncertainty of the duration / characteristics of the COVID-19 pandemic." Shares of Moderna have skyrocketed a whopping 384% this year as investors bet that it will become one of the first drugmakers to develop a viable coronavirus vaccine.— Yun Li

Pfizer, BioNTech post early positive data on coronavirus vaccine

U.S. pharmaceutical giant Pfizer and German biotech firm BioNTech said Monday the potential coronavirus vaccine they are developing jointly has shown positive results in an early trial. "BNT162b1 induced antibodies had broadly neutralizing activity in pseudovirus neutralization assays across a panel of sixteen SARS-CoV-2 RBD variants," the companies said in a release." Robust specific antibody and T cell responses, elicited by the BNT162b1 mRNA vaccine against RBD suggest a potential for multiple beneficial protective mechanisms against COVID-19." Last week, the FDA granted the companies "fast track" designation for their vaccine candidates BNT162b1 and BNT162b2. Shares of Pfizer popped 3.5% in premarket trading on Monday following the news, while BioNTech soared more than 12% — Yun Li

Dow futures turn positive after Pfizer-BioNTech vaccine news

Dow and S&P 500 futures clawed back earlier losses to trade marginally above the flatline after news from Pfizer and German company BioNTech raised hope for a potential coronavirus vaccine. Dow futures were up just 2 points, or 0.01%. S&P 500 futures were also up 0.01%. —Fred Imbert

Positive treatment news continues with Synairgen announcement

A small British pharmaceutical company said a clinical trial showed its new respiratory treatment lowered the number of patients hospitalized with Covid-19 that needed intensive care. The study has not yet been peer reviewed. Synairgen's stock, which trades in London, jumped more than 500% on Monday. — Jesse Pound, Elliot Smith

Florida reports more than 10,000 new Covid-19 cases for fifth day

Florida reported 12,523 new cases of the coronavirus on Saturday, the fifth straight day the hot-spot state reported more than 10,000 new infeections, according to the state's health department. The state has reported more than 11,865 new cases of the Covid on average over the past seven days, up 28.85% compared with a week ago, according to a CNBC analysis of data compiled by Johns Hopkins University. In the U.S., new cases were lower Saturday and Sunday, totaling nearly 64,000 and almost 62,000 respectively after exceeding 70,000 two days in a row Thursday and Friday. — Yun Li

Walt Disney slashes Facebook ad spending, report says

Walt Disney has made significant cuts to its advertising spending on Facebook, the latest setback for social media company as it faces boycotts from companies upset with how it handles hate speech on its platforms, according to The Wall Street Journal. Disney was reportedly Facebook's top U.S. advertiser for the first six months of 2020 with an estimated $210 million spent. Disney, which also halted spending on subsidiary Instagram, was Facebook's No. 2 advertiser in 2019, the Journal reported. — Thomas Franck

Dow futures slip as traders struggle to build on last week's gains

U.S. stock futures indicated a flat-to-lower open on Monday as Wall Street struggled to extend last week's solid performance. Dow Jones Industrial Average futures were down 7 points, indicating a loss of 47 points at the open. S&P 500 futures dipped 0.1% and Nasdaq 100 futures indicated a flat open. The muted market action comes after the S&P 500 and Dow posted their third straight weekly advances last week. It also follows another surge in U.S. coronavirus cases over the weekend. —Fred Imbert