U.S. markets rose broadly on Monday, with travel stocks dependent on the reopening of the economy surging amid a steady decline in new coronavirus cases in the United States and rising hopes of pharmaceutical developments. Apple rose again to trade above $500 per share.
Monday's rally by the numbers
- S&P 500 closed up 1% for its fifth positive day in six at a new record close, its 16th year to date
- S&P 500 is 56.55% above its 52-week low of 2,191.86 from March 23
- Ten out of 11 sectors were positive Monday led by energy up 2.75%
- Nasdaq Composite closed up 0.6% for its fifth positive day in six, at a new record, its 37th year to date
- Nasdaq Composite is up 71.6% above its 52-week low of 6,631.42 from March 23
- Dow closed up 1.35% for its third straight positive day
- Dow is down 0.81% year to date
- Dow is 55.42% above its 52-week low of 18,213.65 from March 23. — Gina Francolla
Stocks rise into the close
The market stretched out its gains in the final hour of trading to finish Monday's session near session highs. The Dow led the way, rising 379 points or 1.4%. The S&P 500 and Nasdaq Composite rose 1% and 0.6%, respectively. — Jesse Pound
Baird strategist to investors: Be careful
Bruce Bittles of Baird warned that investors need to be careful as only a small portion of the overall market is participating in this move to all-time highs. "The S&P 500 and the NASDAQ hit new record highs last week but more stocks were down than up. Typically, the opposite should be true," Bittles, the firm's chief investment strategist, wrote in a note. "In a healthy rising market, the majority of stocks, groups and sectors should be rising along with the averages. On Friday, deteriorating market breadth was exhibited by roughly 200 stocks in the S&P 500 that were up and almost 300 were down." —Fred Imbert
Final hour of trading: S&P 500 headed for another record close
The S&P 500 was on pace to close above 3,400 for the first time. Apple also hit a record and shares of companies that would benefit from the economy reopening rose broadly. The broader market index traded 0.6% higher with roughly one hour left in the session. The Dow climbed 224 points, or 0.8%. The Nasdaq Composite advanced 0.1%. —Fred Imbert
Citi advises on trading the election, details risks under Biden and Trump outcomes
Citi Chief U.S. Equity Strategist Tobias Levkovich wrote that certain tax proposals of both President Donald Trump and former Vice President Joe Biden could have risks for the stock market. Though Biden has yet to release a formal tax plan, he's voiced support for rolling back the Tax Cuts and Jobs Act and taxing capital gains at the ordinary income tax rates. A Trump victory, on the other hand, could mean further headwinds for multinational companies, Citi wrote.
CNBC Pro subscribers can read more here. — Thomas Franck
Here are some of the biggest midday movers on Monday
- Tesla — The electric car company's stock traded lower, giving up an earlier gain of nearly 4% that pushed shares to a new all-time high.
- Best Buy — Shares of the electronics retailer rose after an analyst at Raymond James reiterated his "strong buy" rating on the stock.
- Pinterest — Pinterest shares fell more than 4% after Citi downgraded the image-sharing platform to neutral from buy.
Click here to read more. —Fred Imbert
Markets at midday: Dow up 260 points, S&P 500 and Nasdaq hit records
The major averages built on their record-setting week on Monday as shares of companies benefitting from the economy reopening led the way higher. The Dow rose about 260 points, or 0.9%. The S&P 500 climbed 0.7% and the Nasdaq was up 0.6%. Both the S&P 500 and Nasdaq hit all-time highs. —Fred Imbert
Airline stocks pop after EPA approves new surface coating
Shares of major airlines jumped in unison on Monday after the U.S. Environmental Protection Agency granted American Airlines the use of a new surface disinfectant coating in Texas. American Airlines surged 7.6%, while United and Delta also popped more than 7% each. The announcement comes as airlines are struggling to convince people that it is safe to resume flying amid the coronavirus pandemic. EPA officials said the spray could increase consumer confidence in resuming air travel. — Yun Li
Tesla retreats from record high, turns negative
Shares of Tesla jumped to a record high at the start of trading on Monday, but the stock couldn't hold onto those gains. Less than an hour after the opening bell, the stock was down more than 3%.
Famed value investor Joel Greenblatt said earlier on CNBC that he "really can't explain" the recent surge in shares of the electric vehicle company, noting that it's part of the "froth" in the market. - Pippa Stevens
S&P 500 breaks above 3,400 for the first time
The S&P 500 hit a fresh record high on Monday, trading above 3,400 for the first time. Monday's move higher was driven in part by gains in Apple, Facebook and Amazon. Airlines and cruise operator stocks also rose. The broader market index was coming off a banner week in which it broke above its previous record set in February. —Fred Imbert
Momentum ETF hits record high
The iShares MSCI USA Momentum Factor ETF (MTUM) climbed about 1% on Monday to hit a new intraday record high. Momentum strategies often buy stocks on winning streaks and sell losers, and this ETF tracks 125 large- and mid-cap stocks with relatively fast price changes. Monday's gains were led by Apple, Tesla, Amazon and Google-parent Alphabet, which all hit new all-time highs in morning trading. — Yun Li, Gina Francolla
Here are Monday’s biggest analyst calls of the day: Apple, Pinterest, Lululemon, Best Buy & more
- Needham initiated Sprout Social as buy.
- Susquehanna raised its price target on Lululemon to $426 from $360.
- Raymond James raised its price target on Best Buy to $135 from $100.
- Citi downgraded Pinterest to neutral from buy.
- Evercore ISI added Medtronic to its core ideas list.
- Bank of America upgraded Deere to buy from neutral.
- Morgan Stanley raised its price target on Apple to $520 from $431.
- Susquehanna downgraded Churchill Downs to neutral from positive.
Pro Subscribers can read more here.- Michael Bloom
Stocks rally at the open, Dow up 200 points
The major average spiked after the opening bell on Monday, with the Dow Jones Industrial Average jumping more than 200 points or 0.75%. The S&P 500 and Nasdaq Composite rose 0.8% and 1.2%, respectively. Development in coronavirus treatments and a decline in Covid-19 cases boosted sentiment on the first day of trading of the week. Shares of Apple rose more than 3.5% and shares of Tesla rose 3% at the open. — Maggie Fitzgerald
'Really can't explain it,' famed investor says of Tesla
Tesla's nearly 400% gain this year has puzzled Joel Greenblatt, co-CIO at Gotham Asset Management.
"I really can't explain Tesla," he said Monday on CNBC's "Squawk Box." "I think there's a lot of speculation in the market and I think some of it's there. I really can't explain it."
On the other hand, the famed value investor said he's "not too worried" about Apple due to its "great franchise" and "great growth prospects." The Cupertino-based company's valuation recently topped $2 trillion, making it the first publicly listed U.S. company to achieve that milestone. - Pippa Stevens
Oppenheimer says market is 'vulnerable' to a 4%-6% pullback
John Stoltzfus, chief investment officer at Oppenheimer, thinks a market drop is in the cards now that the S&P 500 has broken out to record levels. "We believe stocks at current levels remain vulnerable to catalysts that might surface near term which could enable short-term and nervous investors, as well as traders, to take some profits without FOMO," he said in a note. "We are reminded that stocks tend not to move in a straight line higher unchallenged for long. Such a pullback, however, (depending on the catalyst for profit taking) could likely present an opportunity to buy 'babies that get thrown out with the bathwater.'" —Fred Imbert
Economists see one-in-four chance of a double-dip recession, National Association for Business Economics survey says
Economists see a one-in-four chance the economy could fall into a double-dip recession, according to the National Association for Business Economics. Two-thirds of NABE members surveyed said the economy has not yet come out of the recession that started in February and about 80% see a one-in-four chance of the economy slipping again once it has recovered. The 235 NABE members in the semiannual survey gave good reviews of the Federal Reserve's stimulus efforts but they were split on whether Congress has done an adequate job responding to the recession. The survey was conducted between July 30 and Aug. 10. — Maggie Fitzgerald, Patti Domm
Tesla rising again
Shares of Tesla jumped more than 2% during premarket trading on Monday, and were set to open at a fresh all-time high.
The move comes on the heels of the electric vehicle's 24.19% jump last week as investors continue to pile into the stock.
On Sunday night, Wedbush analyst Dan Ives raised his bull case price target to $3,500 based on the growth potential in China as well as the company's upcoming battery day.
"We believe the production and demand trajectory in China for Tesla remains robust and stronger than expected for 3Q with clear momentum heading into year-end," he wrote in a note to clients. He has a neutral rating on the stock, and a 12-month base case target of $1,900.
Tesla topped $2,000 for the first time last week ahead of the company's upcoming stock split, which will go into effect after the market closes on Aug. 31. —Pippa Stevens
Trump administration considers fast tracking vaccine, report says
The Trump administration is considering giving the vaccine candidate from AstraZeneca and Oxford an emergency use authorization before the November election, the Financial Times reported, citing sources. The decision would be based on the results of a 10,000 person trial before the standard 30,000 person trial was complete, according to the report. Trump on Saturday accused "the deep state" at the Food and Drug Administration of wanting to delay the approval of the vaccine until after the election, raising concerns that the administration may try to pressure the agency to approve a vaccine before the normal process is complete. — Jesse Pound
Stock futures rise as Wall Street tries to build on record-setting rally
U.S. stock futures rose broadly on Monday as traders looked to start the new week on a positive note. Dow Jones Industrial Average futures were up by 286 points, or 1%. S&P 500 and Nasdaq 100 futures rose 0.9% each. Monday's gains come as the number of new daily coronavirus cases continues to ebb. Also lifting sentiment around the virus was the FDA announcing the approval of the use of convalescent plasma for hospitalized Covid-19 patients, a treatment that uses blood plasma donated by people who've recovered from the virus. The S&P 500 is coming off a banner week, reaching an all-time high last week. —Fred Imbert