With Election Day looming, the market rebounded from last week's sharp losses as energy, materials and industrial stocks led the advance. However, the technology sector came under pressure, pushing the Nasdaq Composite into negative territory before a recovery late in the session. Investors also digested solid economic data as well as the latest coronavirus developments.
Monday's session by the numbers
- Dow closed up 1.6%
- Dow is down 5.65% year to date
- Dow is up 36.45% since President Donald Trump took office
- Russell 2000 small caps closed up 1.96%
- Small caps are down 5.99% year to date
- Small Caps are up 16.56% since Trump took office
- S&P 500 closed up 1.23%
- S&P 500 is up 2.46% year to date
- S&P 500 is up 46.23% since Trump took office
- Eleven out of 11 sectors were positive Monday led by energy up 3.67%
- The least positive sector Monday was communication services up 0.09%.
— Gina Francolla
Dow, S&P 500 post solid gains
The Dow and the S&P 500 finished the day near their opening levels, with the Dow rising 423 points and the S&P 500 gaining 1.2%. The Nasdaq Composite, however, rose just 0.4% as large tech stocks were underperformers on Monday.
— Jesse Pound
Currency market sending mixed signals, trader says
The recent moves in the foreign exchange market indicate traders in the space are having a tough time positioning heading into the U.S. presidential election on Tuesday, said Erik Bregar, head of FX strategy at the Exchange Bank of Canada.
"The euro is in rough shape right now going into tomorrow, which makes me think it could be vulnerable to a risk-off scenario," said Bregar, noting the currency pair has been falling over the past week. "But If you look at the [Canadian dollar] it is responding to that big reversal higher in crude prices today. That makes me think about some kind of risk-on scenario."
The euro has dropped more than 1% against the dollar over the past week. The Canadian dollar, meanwhile, popped more than 0.6% against the greenback on Monday.
"Right now, I think tomorrow is going to be a case of 'don't trade; just grab your popcorn and watch,'" Bregar said.
Final hour of trading: Dow jumps ahead of U.S. election
The Dow and S&P 500 traded higher on Monday, recovering some of their losses from the previous week, as investors braced for the 2020 U.S. presidential election Tuesday. The 30-stock average was up 409 points with less than an hour left in the session. The S&P 500 gained 0.97%. The Nasdaq Composite lagged, dropping 0.2%.
Don't change your portfolio because of election uncertainty, strategist says
Bill Stone, chief investment officer at Stone Investment Partners, advised investors against making any significant changes to their portfolios because of concerns over a delayed, or contested, election result.
"A contested election, a la Bush v. Gore, is probably the least-desirable scenario for everybody involved," said Stone. "But it probably shouldn't 'impact' what companies you own."
"At the end of the day, I truly believe this gets worked out," said Stone.
Nasdaq turns negative
The Nasdaq Composite gave up a near 1.5% gain and turned negative during early afternoon trading as technology stocks underperformed. Shares of Amazon fell 2%, while Microsoft, Apple and Facebook all traded lower on the day. The Dow is still up 350 points, but off its session high when it gained 541 points. — Yun Li
Apple announces Nov. 10 event
Apple announced that it would hold an event on Nov. 10, where the company is expected to unveil new Mac computers that feature processors Apple designed in house. Shares of Apple were little-changed following the news and have lost roughly 0.4% on Monday. — Jesse Pound
Here are some of the biggest market movers halfway through Monday's session
Clorox — Clorox shares popped on the back of better-than-expected quarterly results. The company posted a profit of $3.22 per share on revenue of $1.92 billion. Analysts polled by Refinitiv expected earnings per share of $2.32 per share on revenue of $1.76 billion.
Lemonade — An analyst at Piper Sandler initiated the insurance company's stock with an overweight rating, calling Lemonade "disruptive" in its space.
Dunkin' Brands — The company announced it will be taken private by Inspire Brands in a deal worth approximately $11.3 billion when accounting for Dunkin's debt.
Click here to read more. —Fred Imbert
Markets at midday: Stocks claw back some of their steep losses from last week
The major averages were sharply higher around midday on Monday, rebounding after last week's drop. The Dow rose 447 points, or 1.7%. The S&P 500 gained 1.4% and the Nasdaq Composite advanced 0.5%. —Fred Imbert
Stocks extend gains
The Dow's climb briefly reached 500 points for the day as the U.S. market continued to rise on the day before the Presidential election. The 30-stock average last traded up 465 points, or 1.8%. The S&P 500 and Nasdaq were also up by more than 1%. — Jesse Pound
Manufacturing activity his two-year high in October, ISM survey shows
Manufacturing activity in October jumped to its highest level in more than two years, according to the latest Institute for Supply Management reading released Monday. The ISM Manufacturing PMI rose to 59.3, a reading that indicates the percentage of companies reporting that activity expanded during the month. That was a 3.9 percentage point move higher from September and another indication of economic healing from the coronavirus-induced recession that began in February. New orders hit 67.9%, a 7.7 percentage point increase, while the employment index moved into growth territory with a reading of 53.2%, up 3.6 percentage points. Production saw an increase to 63% while the prices index hit 65.6%. "Committee members reported that their companies and suppliers continue to operate in reconfigured factories; with every month, they are becoming more proficient at expanding output," said Timothy Fiore chair of the ISM's Manufacturing Business Survey Committee. – Jeff Cox
Election could boost Bitcoin and muni bonds, Darda says
A "blue wave" election could boost Bitcoin and high-yield municipal bonds as a Democratic sweep would increase chances of a larger stimulus package and higher taxes, MKM Partners market strategist Michael Darda said in a note. CNBC Pro subscribers can read more about Darda's reasoning here. — Jesse Pound
Stocks are just doing the same thing they did before the 2016 election
If the stock market's behavior this year looks familiar, it should. In fact, stocks leading up to the 2020 presidential election are behaving in quite the same way they did the last time the vote was held in 2016, according to Bespoke Investment Management. While stocks suffered their worst week leading up to a presidential election in more than 50 years, the sharp upturn in Monday trading was identical to the day before the race four years ago. "Back then, the S&P 500 was down 2% in the last full week of trading heading into Election Day and rallied sharply in the two days heading into the election results on November 8th," Bespoke said in its morning market note. In fact, the full-year behavior of an early-year rally, spring dip, summer surge and fall retreat were common to both years. "In both years, once election season rolled around in September, the market pulled back right up through the Friday before Election Day," Bespoke noted. "As the saying goes, history does not repeat itself but it often rhymes." — Jeff Cox
Here are Monday’s biggest analyst calls of the day: Wynn, Under Armour, T-Mobile & more
- Morgan Stanley upgraded Wynn to overweight from equal weight.
- Stifel upgraded Under Armour to buy from hold.
- Atlantic Equities initiated D.R. Horton and Lennar as overweight.
- Barclays upgraded McKesson to overweight from equal weight.
- Piper Sandler initiated Lemonade as overweight.
- Credit Suisse initiated T-Mobile as outperform.
- UBS downgraded Harley-Davidson to neutral from buy.
Pro subscribers can read more here.— Michael Bloom
Stocks open sharply higher
The major indexes surged to start the week as Wall Street tries to shake off its worst stretch since March. The Dow Jones Industrial Average jumped 350 points, or 1.3%. The S&P 500 and the Nasdaq Composite gained 1.1% and 0.9%, respectively. — Jesse Pound
Pennsylvania is the 'keystone' to the election as 'Blue Wave' odds decrease, Wells Fargo says
Wells Fargo equity strategist Christopher Harvey advised investors to keep an eye on Pennsylvania during Tuesday's presidential election as it could swing the result in one candidate's favor, thus changing the broader market outlook.
"With its 20 electoral votes, Pennsylvania – aka the 'Keystone State' – indeed is shaping up to be the 'keystone' for Election Day," Harvey wrote in a note Monday. "Increasing the tension/drama is the fact that PA does not start processing its 2.4MM+ mailed-in ballots until Tuesday. Voting procedures and experts indicate Friday may be the earliest we know the results of a tight PA race – and even that may be an optimistic."
Both candidates are holding events in Pennsylvania ahead of Tuesday's vote.
Market participants have been pricing a "Blue Wave" scenario for this election, with Democrats expected to take the White House and Senate while retaining a House majority. This would be a "short-term positive" as it potentially facilitates the passing of new fiscal stimulus, according to Harvey. However, it could be a "longer-term negative" for stocks if corporate taxes are raised. —Fred Imbert, Michael Bloom
Under Armour rising after upgrade
Under Armour has climbed more than 2% in premarket trading after Stifel upgraded the stock to buy from hold and raised its price target to $17 per share from $11. The upgrade comes on the heels of the company reporting stronger-than-expected results for its third quarter on Friday. Stifel said in the note that the improved sales "quality" for Under Armour was "particularly encouraging." — Jesse Pound
Covid cases continue to rage in the U.S.
Coronavirus cases in the U.S. continued to rise over the weekend, with more than 81,400 new infections recorded on Sunday, according to Johns Hopkins data. That brings the seven-day average of new cases past 81,000 for the first time ever, according to a CNBC analysis of Johns Hopkins data. The U.S. reported 99,321 new Covid-19 cases on Friday.
Dr. Anthony Fauci, the nation's leading infectious disease expert, told the Washington Post in an interview Friday that the U.S. "could not possibly be positioned more poorly" heading into the winter. — Maggie Fitzgerald
Clorox jumps on earnings
Shares of Clorox gained more than 2% during premarket trading on Monday after the company reported better-than-expected first quarter earnings. The household products maker earned $3.22 per share on $1.92 billion in revenue. Analysts surveyed by FactSet expected $2.32 in earnings per share on $1.75 billion in revenue. The company also raised its full-year sales guidance. — Pippa Stevens
Biden holds 10-point lead over Trump heading into the election, NBC/WSJ poll finds
Former President Joe Biden leads President Donald Trump by 10 percentage points nationally in the days leading up to the election, according to an NBC/Wall Street Journal poll. The survey also found that six-in-10 voters thought the country was on the wrong track under Trump's leadership, with a majority disapproving his handling of the coronavirus pandemic. —Fred Imbert, Emma Newburger
U.K. prime minister imposes stay-at-home order
On Saturday, British Prime Minister Boris Johnson announced a second national lockdown in England amid a surge in Covid-19 cases.
The lockdown, which goes into effect on Thursday and will extend through Dec. 2, mandates that people stay at home unless it's for essential purposes. Pubs, bars and restaurants must close apart from takeout.
"Now is the time to take action because there is no alternative," Johnson said during a press conference in London.
The U.K. is reporting more than 22,600 Covid-19 cases based on a weekly average — far higher than its first peak in the spring when it reported an average of 4,800 new cases, according to a CNBC analysis of data compiled by Johns Hopkins University. — Noah Higgins-Dunn, Pippa Stevens
Here's how Wall Street views Biden's infrastructure plans
Democratic nominee Joe Biden's proposals include infrastructure spending to the tune of hundreds of billions of dollars, according to Wall Street analysis of his plans. Investment firm Jefferies said last month that the chances for increased Federal spending on infrastructure were "the brightest in recent memory."
The possibility of a Biden win is part of the reason for optimism around some sectors, such as highway construction stocks and stocks tied to an expansion of rural internet access. Biden's focus on green energy, however, could make investing trickier in some sectors.
CNBC Pro subscribers can read more about the impact of Biden's plans on the market, including stock ideas from analysts. — Jesse Pound
Nio jumps on delivery numbers
Shares of electric vehicle maker Nio jumped more than 8% during premarket trading on Monday after the China-based company reported record delivery numbers during October.
In a statement, Nio said that it delivered 5,055 vehicles in October, a 100% rise year over year. The automaker has delivered 31,430 vehicles thus far this year, up 111% on a year-over-year basis.
Shares are up 660% for 2020. — Pippa Stevens
Stock future surge to start the week
U.S. stock futures traded sharply higher on Monday morning as traders tried to recover some of the steep losses suffered in the previous week. Dow Jones Industrial Average futures were up by 417 points, or 1.6%. S&P 500 futures gained 1.3% and Nasdaq 100 futures advanced 1.1%. The market's comeback came even as England adopted a stay-at-home order to fight the coronavirus and as traders braced for Tuesday's U.S. presidential election. Wall Street was coming off its worst weekly performance since March as U.S. coronavirus cases rose and lawmakers failed to reach a deal on new coronavirus stimulus. —Fred Imbert