Stock market live Monday: Dow sheds 400 points, stimulus concerns, Covid-19 cases hit 40 million

This is CNBC's markets live blog that will be updated throughout the day. 

Stocks reversed early gains on Monday to close in the red as doubts over an additional stimulus package dampened sentiment. Global Covid-19 cases also hit 40 million on Monday, also stoking fear in the market.

Monday's market

  • The Dow Jones Industrial Average shed 1.44% for its worst day since Sept. 23
  • The Dow posted its fourth negative day in five
  • The Dow is 4.64% below its intraday all-time high from Feb. 12
  • The S&P 500 lost 1.63% in its worst daily performance since Sept. 23
  • The S&P saw its fourth negative day in five
  • The S&P is 4.49% below its intraday all-time high from Sept. 2
  • The Nasdaq Composite shed 1.65%
  • The Russell 2,000 declined 1.24%
  • All 11 S&P sectors were negative, led by energy, which fell 2.1%. — Gina Francolla, Pippa Stevens

Major averages shed more than 1%

The major averages closed in the red on Monday as doubts over additional stimulus sent stocks tumbling. The Dow declined 408 points for a loss of 1.4%. Earlier in the session the benchmark had been up 105 points. The S&P 500 slid 1.6%, while the tech-heavy Nasdaq Composite closed 1.65% lower. — Pippa Stevens

Atlanta Fed President says central bank has 'important role' in addressing racial economic issues

Atlanta Fed President Raphael Bostic said the central bank has a significant role to play in helping minorities and other lower-income workers, who have been hit hardest by the pandemic.

"The Fed has an important role to play. We must be central to this conversation. And increasingly, I think we are," Bostic said in a speech to the Securities Industry and Financial Markets Association.

He outlined several initiatives the Fed has taken and also said the new approach allowing inflation to run hot for a period of time before raising interest rates also will help. —Jeff Cox

Final hour of trading: Stocks fall sharply amid concern over new stimulus

Stocks fell to their lows of the day amid concerns about a stimulus deal being reached. The Washington Post reported, citing sources, that a deal between Pelosi and the administration was not "sounding imminent." The Dow was last down 440 points, or 1.5%. The S&P slid 1.7%, while the Nasdaq Composite shed 1.6%. — Pippa Stevens, Fred Imbert

Intel reportedly nearing deal to offload NAND unit

Intel is reportedly nearing a deal to sell its NAND unit to SK Hynix, according to The Wall Street Journal. According to people familiar with the matter, the deal for the memory-chip unit could be valued around $10 billion. Intel declined to comment.

Intel last traded up 2.75%. — Pippa Stevens

Airline stocks rise as TSA screenings pass 1 million

Shares of airlines bucked the broader market weakness and moved higher after the Transportation Security Administration reported that it screened 1 million people on Sunday. That marks the first time the measure has been above 1 million since March, when travel demand slowed to a trickle due because the pandemic. Shares of United Airlines gained 4.7%, while Southwest and American both rose more than 1%. Screenings month to date for October are still down about 65% compared with 2019. — Leslie Josephs, Jesse Pound

Here are some of the biggest movers midday

AMC — Shares of the movie-theater chain rallied after New York Gov. Andrew Cuomo announced that theaters in most of New York could reopen on Oct. 23.

RH — RH shares were under pressure after a Jefferies analyst initiated the home-furnishings company with an underperform rating, citing "inherent execution risk" in management's strategy going forward.

Halliburton — Halliburton rose on the back of better-than-expected earnings for the previous quarter. Halliburton reported a profit of 11 cents per share, topping a Refinitiv estimate of 8 cents per share.

Click here to read more. —Fred Imbert

Markets at midday: Stocks wobble as traders hope for U.S. stimulus deal

The major averages alternated between gains and losses for most of the session as traders hoped lawmakers can reach a deal on new coronavirus stimulus before House Speaker Nancy Pelosi's deadline. Around midday, the Dow was down 86 points, or 0.3%. The S&P 500 traded 0.3% lower and the Nasdaq Composite pulled back 0.2%. —Fred Imbert

Odds of Democratic sweep rising, according to Raymond James

Raymond James said that the chances of a Joe Biden win paired with Democrats taking the Senate are rising and now greater than 50%. That scenario could lead to a bigger fiscal stimulus package from Washington once the new administration takes over.

CNBC Pro subscribers can read more about the analysis and how to invest around this scenario here. — Jesse Pound

Morgan Stanley sees correction ahead before bull market can rage on

Last week, the S&P 500 failed its second breakout attempt through the long-term resistance level of 3,550. After breaking through this level in early September, the index quickly retreated for its first 10% correction in this new bull market. Morgan Stanley told clients the S&P 500's failure to break out last week is a sign that September's pullback could continue at least through the election next month.

"With so many uncertainties over the next month, we think another 10% correction from Monday's highs is the most likely outcome in the near term before this bull market can resume," Morgan Stanley chief U.S. equity strategist Mike Wilson told clients.

The S&P 500 is down 1.86% from Monday's high of 3,549.85, which means stocks could fall more than 8% before the correction is over.

Pro subscribers can read more about the call here. — Maggie Fitzgerald

Stocks turn negative

The major averages gave up their gains less than an hour into trading on Monday. The Dow last traded 0.1% lower, while the S&P was down 0.18%. The Nasdaq Composite was flat.— Pippa Stevens

Treasury yields jump on stimulus hopes, solid China data

Treasury yields climbed on Monday amid renewed hopes for a coronavirus aid deal as well as strong economic data out of China. The yield on the benchmark 10-year Treasury note, which moves inversely to prices, rose 4 basis points to 0.781%, the highest level since Oct. 9. The yield on the 30-year Treasury bond jumped 4 basis points to 1.574%, also the highest level in more than a week. The 10-year rate has risen about 10 basis point this month. On March 8, the 10-year yield hit an all-time low of 0.318% amid a historic flight to bonds during the pandemic. — Yun Li

Fed is studying digital currency but is focused on doing it properly, Powell says

The Federal Reserve continues to study the merits of having its own digital currency but is more concerned with getting it right than being first, Chairman Jerome Powell said Monday. As part of its look into digital payments systems, the Fed has examined instituting its own currency but is taking its time. "In addition to addressing the benefits, and there may well be benefits, there are also some quite difficult policy and operational questions that need to be evaluated thoroughly," Powell told an International Monetary Fund panel on the issue. Powell added that the Fed is working "with a wide variety of stakeholders" to examine issues associated with digital currency development and risks. The Fed has continued to proceed with its FedNow payments service, which is expected to come online over the next several years. — Jeff Cox

Stocks rise at the open

Stocks opened higher on Monday as the major averages looked to build on last week's gains. The Dow Jones Industrial Average advanced 85 points, for a gain of 0.3%. The S&P 500 rose 0.4%, while the Nasdaq Composite traded 0.6% higher. — Pippa Stevens

Here are Monday’s biggest analyst calls of the day: Tesla, Hershey, RH & more

  • Guggenheim upgraded Bristol Myers to buy from neutral.
  • Jefferies initiated RH as underperform.
  • Bank of America downgraded VF Corp to underperform from neutral.
  • Citi initiated Hershey as buy.
  • Wedbush raised its price target on Tesla to $500 from $475.
  • Argus downgraded UnitedHealth to hold from buy.

Pro subscribers can read more here. - Michael Bloom

ConocoPhillips to acquire Concho Resources

ConocoPhillips is acquiring Concho Resources in an all-stock deal valued at $9.7 billion, the two companies said Monday.

"Today's transaction is an affirmation of our commitment to lead a structural change for our vital industry ... Together, ConocoPhillips and Concho will have unmatched scale and quality across the important value drivers in our business," Ryan Lance, ConocoPhillips chairman and CEO, said in a statement.

Under the terms of the deal, each Concho share will convert to 1.46 shares of ConocoPhillips. The newly combined company will have an enterprise value of roughly $60 billion.

Shares of ConocoPhillips gained roughly 1% during premarket trading on Monday, while Concho Resources advanced 2%. — Pippa Stevens

Pelosi slaps 48-hour deadline on stimulus talks

House Speaker Nancy Pelosi on Sunday called on the Trump administration to reconcile remaining disputes on a coronavirus stimulus deal within 48 hours as lawmakers attempt to pass a bill before the 2020 election.

"The 48 only relates to if we want to get it done before the election, which we do," Pelosi said in an interview on ABC News on Sunday. The comments came after she spoke with Treasury Secretary Steven Mnuchin on Saturday night for more than an hour. They agreed to speak again on Monday. — Emma Newburger, Yun Li

China GDP grew 4.9% in the third quarter

The Chinese economy continued to bounce back from the coronavirus lows, according to data released Monday by the National Bureau of Statistics. The world's second-largest economy reported third-quarter GDP rose 4.9% year over year, bringing growth for the first three quarters of 2020 to 0.7% from a year ago. Chinese economists expected GDP growth of 5.2% in the third quarter, according to an average of estimates compiled by Wind Information, a financial information database.— Evelyn Cheng, Yun Li

AMC climbs after New York announcement

Shares of AMC Entertainment rose 3.3% after New York Gov. Andrew Cuomo announced that movie theaters can open in most of the state on Oct. 23. The new regulation does not apply to New York City, however. — Jesse Pound

CVS to hire 15,000 workers in preparation for Covid-19 case jump

CVS is planning to hire 15,000 employees to prepare for an expected rise in Covid-19 and flu cases throughout the fall and winter, the company said Monday. More than 10,000 of the new workers will be full-time and part-time licensed pharmacy technicians who will be able to administer Covid-19 tests. The larger workforce could also help the company administer a Covid-19 vaccine once it's available.

Shares of CVS gained 0.7% during premarket trading on Monday. — Pippa Stevens, Melissa Repko

Global coronavirus cases top 40 million

The number of reported Covid-19 cases around the world topped 40 million on Monday, according to data from Johns Hopkins University. The milestone of 40,050,902 confirmed cases comes amid a resurgence of infections in the U.S. and Europe. Populations have feared a "second wave" as lockdown restrictions eased and fall temperatures fell. In the U.S., daily new cases continue to rise in more than half of states as debate rages over the effectiveness of public safety measures touted by the country's top health experts. — Maggie Fitzgerald

U.S. stock futures rise

Futures contracts tied to the major U.S. averages rose on Monday as investors continue to hope for a stimulus deal. Dow futures gained nearly 200 points, indicating a 100-point rally at the opening bell. S&P 500 futures were up 0.8%, while Nasdaq 100 futures gained 1%.

But a rising number of Covid-19 cases did hurt sentiment. On Monday the number of coronavirus cases around the world hit 40 million, according to Johns Hopkins University.

The Dow and S&P 500 are coming off their third straight week of gains, while the Nasdaq Composite is coming off its fourth consecutive positive week.— Pippa Stevens