Stocks rose across the board on Monday, clawing back from the S&P 500's worst week since June and the Nasdaq Composite's worst week since March. Technology stocks rose, helped by gains in Oracle, which has been chosen to be TikTok parent ByteDance's U.S. partner. M&A activity from Nvidia and Verizon also boosted sentiment.
Monday's rally by the numbers
- The Dow gained 327 points, 1.18%, its third positive session in four.
- Dow Impact: UnitedHealth had the most positive impact on the Dow, adding 47 points to the index.
- The S&P 500 gained 42 points, 1.27%, its third positive session in four.
- SPY Impact: Apple had the most positive impact on the SPY, adding 0.68 points to the ETF.
- The Nasdaq Composite gained 203 points, 1.87%, breaking a two-day losing streak.
- NDX Impact: Tesla has the most positive impact on the NDX, adding 48 points to the index.
- All 11 S&P Sectors are positive in Monday's session, led by real estate, up 2.16%. Communication Services is the laggard, up 0.13%. — Christopher Hayes
Stocks rise to start the week, Dow up more than 300 points
The major averages started the week with sharp gains, clawing back some of the recent losses in equities. The Dow Jones Industrial Average closed up 327 points. The S&P 500 rose 1.27%, after its worst week since June and the Nasdaq Composite rose 1.87%, after its worst week since March. A flurry of M&A and optimism about a Covid-19 vaccine fueled the broad based rally. —Maggie Fitzgerald
Banking regulators were about to penalize Citigroup, hastening CEO departure, WSJ reports
U.S. banking regulators were preparing to penalize Citigroup over its risk control infrastructure, leading to the accelerated departure of CEO Michael Corbat, the WSJ reported.
The Office of the Comptroller of the Currency and the Federal Reserve are both expected to issue a consent order to the New York-based bank to improve its systems, the newspaper said. That was a factor in CEO Mike Corbat announcing last week that he intended to step down in February, the newspaper reported.
Last week, CNBC reported first that Corbat had accelerated his plans to step down amid pressure from regulators over a $900 million blunder and the firm's lagging stock price. For years, regulators have told Citigroup that its systems were subpar, CNBC reported. The bank would push back, but after accidentally sending $900 million to hedge fund lenders to Revlon, they couldn't make that argument anymore. Shares of Citigroup fell 5% following the WSJ report. —Hugh Son
AstraZeneca Covid-19 vaccine trial remains on hold in U.S., Reuters says
Shares of AstraZeneca turned negative on Monday after Reuters reported that the drugmaker's coronavirus vaccine trials will remain on hold in the U.S. The trial was resumed in the U.K. after being halted for safety concerns. The report said the U.S. trial could remain on hold through mid-week or longer. —Reuters, Fitzgerald
DraftKings surging after announcing deal with ESPN
Shares of DraftKings rose 12% after announcing a deal with ESPN. The stock was trading slightly negative for the session prior to the announcement.
As part of the agreement, DraftKings content will be integrated into ESPN's digital offerings and studio shows, the company said in a release. DraftKings will be the exclusive provider of daily fantasy sports and a co-exclusive partner for gambling link-outs from ESPN, the company said. — Jesse Pound
Tesla shares jump 9%
Tesla shares jumped 9% on Monday as the stock started the week on a high note. The rally came on the heels of broad-based strength in the technology sector, as well as Goldman Sachs issuing optimistic comments surrounding demand from China. Shares of Tesla are still down more than 17% this month. - Pippa Stevens
Here are some of the biggest movers midday
- Immunomedics — Shares of the cancer drugmaker more than doubled on news it will be acquired by Gilead Sciences.
- Oracle — The software giant popped on news it was picked by TikTok-parent ByteDance to be its U.S. partner for the popular social video app.
- Overstock.com — The online retailer surged after an analyst at Needham initiated the stock with a buy rating, noting Overstock is "benefiting from external and internal factors that are driving an acceleration in revenue growth and market share gains."
Click here to read more. —Fred Imbert
Markets at midday: Stocks surge amid dealmaking flurry
The major averages were up sharply around midday trading, with the Dow trading 363 points higher, or 1.3%. The S&P 500 jumped 1.7% and the Nasdaq Composite surged 2.3%. Those gains came after a slew of corporate deals were announced, lifting market sentiment. —Fred Imbert
Cramer says Nvidia-Arm deal could be 'game-set-match' for competitors
CNBC's Jim Cramer said on "Squawk on the Street" that Nvidia's move to buy Arm Holdings puts it in a dominant position in the semiconductor industry.
"This is really an extraordinary deal. I think it's game, set, match in the semiconductor industry. They touch everything," he said.
Shares of Nvidia gained more than 6% on Monday morning. CNBC Pro subscribers can watch the full segment here. — Jesse Pound
Oppenheimer ups price target on Apple to $125 from $105
Oppenheimer raised its price target on Apple on Monday morning to $125 from $105 and said it believed the work and school from home dynamic would lead to "stronger than expected demand for all things Apple." The firm kept it's outperform rating on the stock as it expects Apple to continue to climb higher. "While we do not expect a 'super cycle' by any means, share gains are possible being early in the cycle with 5G, Huawei leaving the market, and previous dampened Wall St estimates due to COVID-19," analyst Andrew Uerkwitz said. Apple shares were up almost 2% in early trading.- Michael Bloom
Biotech ETF on track for best day since April
The S&P Biotech ETF (XBI) jumped 5.12% on Monday, on pace for its best day since April 17. The gains were led by Immunomedics, which surged up more than 106% on Gilead acquisition, headed for its best day ever. Mersana Therapeutics is also up almost 20% Monday. The XBI is equal-weighted and therefore more influenced by some of the smaller biotechs. Meanwhile, the Nasdaq Biotech ETF (IBB) is cap-weighted and gained 4.3% Wednesday. — Gina Francolla, Yun Li
Oracle resumes trading after confirming ByteDance deal
Shares of Oracle climbed 6.1% after the computer software giant confirmed it has struck a deal with TikTok-owner ByteDance. "Oracle confirms Secretary Mnuchin's statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider," Oracle said on Monday. Mnuchin told CNBC on Monday morning that the U.S. government plans to review the deal this week. — Yun Li, Jordan Novet
New 52-week highs on Monday
Monday's rally pushed several stocks to new 52-week highs:
- McDonald's, trading at levels not seen since Aug, 2019
- Nike, trading at all-time high levels back to its IPO in 1980
- Archer-Daniels-Midland, trading at levels not seen since Nov, 2018
- Expeditors International, trading at all-time high back to their IPO in 1984
- FedEx, trading at levels not seen since Oct, 2018
- Norfolk Southern, trading at all-time high levels back to its IPO in 1982
- Freeport-McMoRan, trading at levels not seen since July, 2018
- Sherwin Williams, trading at all-time highs back to when it began trading in 1920. — Christopher Hayes
Fifth Third jumps 5% after issuing positive outlook
Shares of Fifth Third jumped more than 5% on Monday after the regional bank struck an optimism tone about its outlook at the Barclays Global Financial Services Conference. Fifth Third said it's "well-positioned to navigate the uncertain economic environment and generate top-quartile returns in the near term and long term," adding it has "reduced credit-risk exposures and built strong reserves," according to an 8-K regulatory filing. The bank also said it has built "long-term protection to mitigate the impact of the low rate environment." The stock is still down about 28% this year. — Yun Li
Market correction goes 'according to plan,' Canaccord says
Canaccord's Tony Dwyer said the recent market correction was consistent with the trading action seen after the 2009 bottom was reached.
"The 7% correction in the S&P 500 (SPX) over the past six trading sessions is likely the first of a few 3-7% drawdowns followed by new highs as the market stairsteps higher like the fall of 2009," said Dwyer, the firm's chief market strategist, in a note.
The major averages were under pressure last week amid a sharp drop in tech stocks, the best-performing group on Wall Street.
"Our view has been that any pullbacks would be driven by the extended nature of the mega-cap 'stay at home' theme, in favor of the 'economic recovery' sectors," Dwyer said.
Dwyer added he expects more volatility moving forward, but this correction has gone "according to plan." —Fred Imbert, Michael Bloom
Broad based rally in stocks on Monday
Stocks rose across the board on Monday, creating a broad based rally among market constituents. Technology stocks got a boost from M&A activity with Oracle partnering with China-based TikTok parent ByteDance. Nvidia is set to buy fellow chipmaker Arm Holdings from Softbank and Verizon is set to buy wireless service provider Tracfone. Outside of tech, Gilead Sciences said it is buying Immunomedics for $21 billion. Plus, AstraZeneca resumed its phase three trials for its Covid-19 vaccine in the U.K. after halting for safety concerns, which lifted the rest of the market.
The Dow Jones Industrial Average jumped 275 points in early trading on Monday. The S&P 500 rose 1.36% and the Nasdaq Composite popped 2%, after its worst week since March. — Maggie Fitzgerald
Oracle shares halted
Shares of Oracle were halted shortly after the opening bell due to news pending. A person familiar with the discussions told CNBC that TikTok parent ByteDance picked Oracle to be the U.S. partner of the popular social video app. Prior to being halted, shares were up more than 4%. - Pippa Stevens
Here are Monday's biggest analyst calls of the day: Micron, Kroger, Nvidia, Gamestop & more
- Goldman Sachs downgraded MGM to sell from neutral.
- Needham initiated Overstock.com as buy.
- Jefferies upgraded GameStop to buy from hold.
- Morgan Stanley initiated Thermo Fisher as overweight.
- Goldman Sachs upgraded Micron to buy from neutral.
- Bank of America downgraded Kroger to neutral from buy.
- Jefferies raised its price target on Nvidia to $680 from $570.
Pro Subscribers can read more here. - Michael Bloom
Stocks open higher as market tries to rebound
Stocks opened in the green on Monday as markets tried to rebound from last week's heavy losses. The Dow rose 208 points for a gain of 0.75%, while the S&P 500 advanced 1.06%. The Nasdaq Composite, which is coming off its worst week since March, traded 1.54% higher. - Pippa Stevens
Immunomedics doubles on Gilead acquisition
Shares of Immunomedics more than doubled in the premarket after the cancer drugmaker announced it was being bought out by Gilead Sciences for $21 billion, or $88 per share. The deal is expected to close in the fourth quarter. Gilead will pay $15 billion in cash and finance the rest through newly issued debt.
"This acquisition represents significant progress in Gilead's work to build a strong and diverse oncology portfolio," Gilead Chief Executive Daniel O'Day said in a statement. —Fred Imbert, Berkeley Lovelace Jr.
Nasdaq's worst week since March
The market is looking to rebound from last week's sharp losses led by high-flying technology shares. The Nasdaq Composite dropped 4% last week to suffer its worst week since March 20, and the tech-heavy benchmark is still in correction territory, or more than 10% below its all-time high of 12,074.07 from Sept. 2. Meanwhile, the S&P 500 is coming off its first two-week losing streak since May and its worst week since June 26. The S&P 500 also fell below its 50-day moving average level of 3,321.71 for the first time since April 24. The moving average is a widely watched momentum indicator. — Yun Li, Gina Francolla
OPEC slashes 2020 oil demand outlook
OPEC has reduced its 2020 and 2021 oil demand outlook on weaker-than-expected recovery in India and other Asian countries. In a closely-watched monthly report published Monday, OPEC and its allies said they expect oil demand to average 90.2 million barrels per day in 2020, which is 400,000 bpd lower than prior estimates. The group expects weakness to persist into the first six months of 2021.
"Risks remain elevated and skewed to the downside, particularly in relation to the development of Covid-19 infection cases and potential vaccines," the report said.
Oracle chosen to become TikTok's U.S. partner, shares pop
Shares of Oracle soared more than 7% in premarket trading on Monday after a person familiar with the discussions told CNBC that TikTok parent ByteDance picked Oracle to be the U.S. partner of the popular social video app. Oracle will take a significant stake in the business, according to a person familiar with the discussions. Oracle, which specializes in cloud infrastructure, beat out technology giant Microsoft for the TikTok deal. The White House had imposed a Sept. 20 deadline for ByteDance to announce a plan for a sale of TikTok in the U.S. or be banned by Sept. 29, and a deal would have to be done by Nov. 12. — Maggie Fitzgerald, Julia Boorstin, Jordan Novet
Covid cases rising in 11 states
The number of Covid cases was growing by a weekly average of at least 5% in 11 U.S. states as of Sunday, according to a CNBC analysis of data compiled by Johns Hopkins University. Those states span several geographic regions of the country and include New Jersey, Connecticut, Wisconsin, Arkansas and Alaska.
Despite the increases in these states, the overall number of cases in the country is declining. The U.S. averaged more than 34,000 cases per day last week, about half of what it was several weeks ago. — Jesse Pound, Berkeley Lovelace Jr.
Nvidia jumps 6% after announcing Arm deal
Shares of Nvidia popped more than 6% in premarket trading on Monday after the chipmaker said it has agreed to buy Arm Holdings, a designer of chips for mobile phones, from SoftBank in a deal worth $40 billion. The deal will include $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing. Nvidia has been one of the hottest stocks this year, surging more than 100%, thanks in part to a boom in video games amid the pandemic. — Yun Li
Stock futures jump
Stock futures tied to the major averages jumped on Monday as markets looked to claw back some of last week's steep declines. Dow Jones Industrial Average futures added 251 points, or 0.9%. The move implied a gain of more than 200 points at the open. S&P 500 futures were up 1.2%, while Nasdaq 100 futures were up more than 1.3% as tech shares rebounded. Tech was the worst-performing S&P 500 sector last week as investors rotated out of some of the high-flying names. The Nasdaq Composite fell 4.06% last week, for its worst week since March. - Pippa Stevens