Stocks rose broadly on Monday as investors monitored President Trump's health status and looked for updates on a potential stimulus deal in Washington. McDonald's, Crowdstrike and Regeneron were among the stocks that received upgrades from Wall Street analysts.
Monday's market in review:
- S&P 500 gained 1.8% for its best day since Sept. 9
- The Dow Jones Industrial Average rose 1.68% for its best day since July 14
- The Nasdaq Composite gained 2.32% for its best day since Sept. 9
- All 11 sectors finished higher, led by energy which gained 2.9%
- West Texas Intermediate crude, the U.S. oil benchmark, gained 5.86% for its best day since May 18. - Gina Francolla
Stocks close around session highs
Stocks closed around their highs of the day after President Donald Trump said he will be discharged from the hospital on Monday evening. The Dow Jones Industrial Average rose 465 points for a gain of 1.68%, while the S&P advanced 1.8%. The Nasdaq Composite closed 2.3% higher. Hopes for further fiscal stimulus also fueled Monday's gains. - Pippa Stevens
Wall Street's wallets endorse Biden
The following post is from CNBC contributor Michael Farr, the CEO of Farr, Miller and Washington.
On Friday, the markets pulled back as the President was diagnosed with COVID-19. Over the weekend, the President was hospitalized; the messaging on the status of his health was inconsistent at best; and an NBC/WSJ poll was released showing Biden with a stunning 14% national lead.
So today the markets — shrugged, and moved upwards. The Dow Jones Industrial Average recovered above the 28,000 and the more volatile, tech-heavy NASDAQ was up an even greater percentage than the Dow.
The markets are not making a political statement, nor am I, and certainly among traders and investors you will find a wide range of political sentiment. Yet it is clear that Wall Street is comfortable with the prospect of a Biden presidency, and even a "blue wave." If they were not, the Dow would be down 1,000 or more points today. The markets are forward looking, and while the future is uncertain, this weekend a Biden presidency became a very possible case, and a Democratic majority in the Senate moved from plausible to probable.
And stocks rose.
Wall Street doesn't ignore clear signals, whether they like them or not. Wall Street votes with its wallet. This Monday, the vote was clear: Wall Street is comfortable if next month's vote produces a Biden victory. — Michael Farr
Stocks at session highs
The market extended its gains as the final hour of trading kicked off, with the Dow now up 400 points for the session. The S&P 500 has risen 1.6%, while the Nasdaq Composite is the relative leader, advancing 2%. — Jesse Pound
Trump to be released from hospital at 6:30 p.m. ET
President Donald Trump said he will be released from the hospital where he has been recovering from Covid-19 on Monday evening.
"I will be leaving the great Walter Reed Medical Center today at 6:30 P.M.," the president said on Twitter. "Feeling really good! Don't be afraid of Covid. Don't let it dominate your life. We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!" — Maggie Fitzgerald
More than 430 stocks in S&P 500 positive
Monday's rally has been broad based so far, with advancing stocks in the S&P 500 outnumbering declining stocks by a ratio of roughly 6-to-1. According to FactSet, there were 433 stocks in the index trading in the green while just 69 had lost ground. — Jesse Pound
Dan Loeb's Third Point reveals stake in Snowflake
Hedge fund manager Dan Loeb has a new stake in Snowflake, according to the monthly portfolio update of the Third Point Offshore Fund. The newly public stock was listed as one of the fund's month-to-date winners for September. Shares of the cloud storage company have gained more than 5% on Monday. — Jesse Pound
Markets at midday
U.S. stocks were strong across the board near noon on Monday. The Dow was up 365 points, or 1.3%, while the S&P 500 and Nasdaq Composite posted gains of 1.4% and 1.8%, respectively. Small caps also performed well, with the Russell 2000 rising 2%. — Jesse Pound
McDonald's a 'very high quality company,' says Cramer
CNBC's Jim Cramer called McDonald's a "very high quality company" on Monday after the stock got a price target raise from Bank of America. The firm said McDonald's has benefited from consumers turning to drive-thru dining options amid the pandemic.
Shares of McDonald's were about 1% higher on Monday.
Cramer says stimulus hope driving rally
CNBC's Jim Cramer believes Monday's strong rally is driven by rising hopes for a further coronavirus stimulus deal. "I think this is more stimulus. I really do," Cramer said on CNBC's "Squawk on the Street" on Monday. "This is hope on talks between Secretary Mnuchin and Speaker Pelosi that may be going on now."
Optimism for reaching a compromise rose over the weekend after House Speaker Nancy Pelosi signaled progress on Friday, saying "we continue to work on the text to move quickly to facilitate an agreement." — Yun Li
Stocks open in the green
Stocks opened in positive territory as investors grew confidence about Trump's improving condition as well as further fiscal stimulus. The Dow Jones Industrial Average rose more than 200 points. The S&P 500 and Nasdaq Composite rose 0.7% and 0.8%, respectively. — Maggie Fitzgerald
Here are Monday’s biggest analyst calls of the day: Starbucks, Shopify, AT&T, Dunkin’ Brands & more
- Cantor Fitzgerald upgraded Regeneron to overweight from neutral.
- KeyBanc downgraded AT&T to underweight from sector weight.
- Morgan Stanley initiated Shopify as equal weight.
- Goldman Sachs upgraded CrowdStrike to buy from neutral.
- Bernstein upgraded Altice USA to outperform from market perform.
- Evercore ISI added Stryker to the tactical outperform list.
- Oppenheimer named Starbucks as an actional buy idea.
- BTIG downgraded Dunkin' Brands to neutral from buy.
- Bank of America raised its price target on McDonald's to $250 from $225.
Pro Subscribers can read more here. - Michael Bloom
Trump, Pelosi renew calls for fiscal stimulus despite weekslong deadlock
Top Democrats and Republicans alike renewed calls over the weekend for additional fiscal stimulus in another Covid-19 bill. President Donald Trump on Saturday took to Twitter from his hospitalization at Walter Reed hospital to call on Congress to strike a deal.
"OUR GREAT USA WANTS & NEEDS STIMULUS. WORK TOGETHER AND GET IT DONE. Thank you!" he wrote. The Washington Post reported that White House officials are confident they can solidify the outlines of a deal by the middle of the week.
House Speaker Nancy Pelosi, D-Calif., told CBS on Sunday that lawmakers are "making progress" on a deal, but did not comment on the status of negotiations on the myriad issues that have become sticking points between the two sides for the past several weeks.
Top Democrats have been deadlocked with the White House since late summer over key aspects, and the size, of a new stimulus package. — Thomas Franck
Trump active on Twitter Monday morning
President Donald Trump fired off 19 tweets on Monday morning, which could be a sign he is feeling better after his Covid-19 diagnosis. The president was encouraging Americans to vote as well as touting the strength of the stock market.
"Pro Life! Vote!," Trump wrote. "Massive regulation cuts. Vote!," Trump said in another tweet. "Law & order. Vote!," the tweet said. — Maggie Fitzgerald
Coronavirus cases top 35,000 but were below the 7-day average
New coronavirus cases totaled 35,504 Sunday, below the 7-day average. Deaths totaled 337, which also is less than the past week, though case counts tend to fall over the weekend. The daily case increase has averaged 43,088 over the past week, according to Johns Hopkins University. Deaths have averaged 709 during the period and have been trending downward since the most recent peak in mid-September. Hospitalizations totaled 29,942, up 1.7% from a week ago, according to the Covid Tracking Project. The U.S. death count is at 209,734, about one-fifth of the global total. — Jeff Cox
Trump could be out of hospital on Monday
After being given antiviral drug remdesivir and a steroid to fight off the coronavirus, President Donald Trump's condition is improving. Trump's physician, Dr. Sean Conley, said Sunday that his condition has improved and the president may be discharged from the Walter Reed National Military Medical Center as soon as Monday. However, doctors are still monitoring Trump's oxygen levels.
Trump said in a minute-long video posted on Twitter late Sunday that "we are getting great reports from the doctors." The president also took a short, last-minute motorcade ride to wave to his supporters standing outside the hospital. — Maggie Fitzgerald
Regeneron shares rise
Shares of Regeneron rose 5% in light premarket trading after President Donald Trump received an experimental antibody cocktail from the company and Cantor Fitzgerald upgraded the stock. The investment firm changed its rating to overweight from neutral, saying in a note to clients that it was bullish on the biotech company's antibody treatment and a new dermatitis drug. — Jesse Pound
Equity futures rise as investors cheer Trump's health, deal talks
U.S. equity futures rose before the week's first regular session as investors applauded possible signs of President Donald Trump's improving condition and diminished political uncertainty as he is appearing to regain his health.
Dow and S&P 500 futures both rose about 0.7% around 7:30 a.m. ET while Nasdaq-100 contracts added 0.9%. The premarket moves implied that the Dow Jones Industrial Average would climb more than 200 points at the opening bell on Wall Street.
Last week the Dow added 1.87% and broke a four-week losing streak. The S&P 500 and Nasdaq Composite added 1.52% and 1.48%, respectively.
Uncertainty about the president's health rattled markets Friday after Trump tested positive for Covid-19, sparking doubts about his continued ability to carry out the work of the executive office, the 2020 elections and the Supreme Court nomination process. — Thomas Franck