Stock market live Tuesday: Dow gains 200 points, big rotation continues, tech falls

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

Tuesday's session by the numbers

  • Dow closed up 262.95 points, or 0.9% for its sixth positive day in seven
  • Dow is up 3.09% year to date
  • Russell 2000 small caps closed up 1.88% for their sixth positive day in seven
  • Small caps are up 4.11% year to date
  • Eight out of 11 sectors were positive Tuesday led by energy up 2.52% and closely followed by consumer staples up 1.98% for its best day since May 8
  • The S&P 500 fell 0.14% for its second negative day in three
  • The S&P 500 is up 9.74% year to date
  • The Nasdaq Composite fell 1.37% for its second-straight negative day
  • The Nasdaq Composite is up 28.77% year to date.

— Gina Francolla, Jesse Pound

Dow, small caps outperform in market rotation

The Dow rose about 262 points, or 0.9%, on Tuesday as investors rotated away from tech stocks. The small cap Russell 2000 also outperformed, gaining 1.9%.

The S&P 500 and Nasdaq Composite fell 0.1% and 1.4%, respectively.

— Jesse Pound

Final hour of trading: Dow up by 200 points as S&P 500 and Nasdaq struggle

The Dow traded more than 200 points higher heading into the close as the S&P 500 and Nasdaq struggled amid a rotation out of tech names and into underperforming cyclicals. The S&P 500 dipped 0.1% and the Nasdaq was down by 1.3%.

Fred Imbert

Apple event to start soon

Apple will start an event at 1 p.m. ET where it is expected to debut new Mac computers powered by its own processors. This would be the first time the tech giant has not used Intel chips in its Mac computers since 2005.

Apple's stock was up by 0.6% for the session shortly before 1 p.m. Follow along with CNBC's tech reporters at the Apple event live blog.

— Jesse Pound

Markets at midday: Dow surges while S&P 500 and Nasdaq struggle

The Dow was pulling away from the S&P 500 and Nasdaq Composite as traders continued to trim positions in high-flying technology names and adding exposure to beaten-down cyclical stocks.

The Dow traded more than 200 points higher around midday, or 0.8% higher. The S&P 500 hovered around the flatline and the Nasdaq dipped 0.7%.

Fred Imbert

Stocks making the biggest moves midday

  • D.R. Horton — The homebuilder stock jumped 5% after D.R. Horton beat Wall Street estimates on the top and bottom line for its fiscal fourth quarter and raised its dividend. 
  • Zoom Video — Popular stay-at-home plays sunk for a second day following positive news on treatments and vaccines for the coronavirus. Shares of Zoom Video lost more than 7%. Teladoc Health ticked 2.6% lower and Peloton fell 1.5%.
  • RealReal — Shares of the luxury consignment company tanked more than 6% after reporting disappointing earnings. 

Read more about midday movers here.

— Maggie Fitzgerald

Robinhood app experiencing technical issues

Millennial favored stock trading app Robinhood said Tuesday it is experiencing glitches. "We are experiencing issues with equities, options, and crypto trading. We are working to resolve this as soon as possible," the company said on its status webpage.

Many of the e-brokers experienced technical issues on Monday during the huge rally in stocks.

— Maggie Fitzgerald

Stocks slip into the red

Around 10:30 a.m. ET the major averages were all trading in the red. The Dow Jones Industrial Average ticked 10 points lower. The S&P 500 fell nearly 1% and the Nasdaq Composite lost 2.3%.

— Maggie Fitzgerald

Boeing jumps another 6%

Shares of Boeing gained more than 6% in early Tuesday trading after Reuters reported the U.S. Federal Aviation Administration is in the final stages of reviewing proposed changes to Boeing's 737 Max. The agency could approve the plane's ungrounding as early as Nov. 18, Reuters reported. The stock surged 13.7% in the previous session on hopes that an effective vaccine would help revive the travel industry.

Yun Li

Layoffs fall to lowest level in nearly 20 years, JOLTS report shows

Layoffs hit a nearly 20-year low as the labor market continued to recover from the coronavirus pandemic, the Labor Department reported Tuesday. In its latest Job Openings and Labor Turnover Survey, the department said layoffs and discharges totaled 1.33 million in September, the lowest level ever in records dating back to December 2000. The layoff and discharges rate fell to 1.1% from 1.3% in August. The report also showed that job openings increased slightly over the month to 6.44 million, still leaving nearly two available workers for every opening as 12.6 million remain unemployed for the month. Hires edged lower to 5.9 million while total separations were little changed at 4.7 million. – Jeff Cox

NYSE advancers lead decliners 2-1

The S&P 500 struggled in early Tuesday trading but the number of advancing stocks at the New York Stock Exchange outpaced decliners. At around 10:20 a.m. ET, about two stocks traded higher for every declining name, according to FactSet. Overall, about 1,800 NYSE-listed names were higher and just over 900 traded lower.

Fred Imbert

Value rotation will stay with more capital spending, investor says

The current rotation into value stocks and out of growth could turn into a long-term trend if there's an increase in capital expenditure, according to Peter Kraus, chairman and CEO of Aperture Investors.

"Technology companies are going to continue to grow ... but the valuation differences are going to be adjusted," Kraus said on Tuesday. "The rotation you are seeing right not might not last that long ... but If we see a follow-through in Capex and in fiscal spending, some inflation and interest rate rises, you are going to see a long-term Capex cycle that will drive value type stocks."

Yun Li

Buy value stocks, says Aperture's Peter Kraus
Buy value stocks, says Aperture's Peter Kraus

Vaccine rally continues Tuesday

Stocks opened in the green on Tuesday, continuing the rally spurred by optimism around an effective Covid-19 vaccine. The Dow Jones Industrial Average jumped 123 points at the open. The S&P 500 fell 0.2%. The Nasdaq Composite fell 0.75% as investors rotated out of technology names.

— Maggie Fitzgerald

Here are Tuesday’s biggest analyst calls of the day: Peloton, Beyond Meat, Morgan Stanley & more

  • Bernstein initiated Merck as outperform.
  • Bank of America upgraded Levi to buy from neutral.
  • Bank of America downgraded Ralph Lauren to neutral from buy.
  • BTIG upgraded Square to buy from neutral.
  • Piper Sandler upgraded Beyond Meat to overweight from neutral.
  • JPMorgan upgraded Raytheon to overweight from neutral.
  • Citi downgraded Morgan Stanley to neutral from buy.
  • DA Davidson upgraded Wayfair to buy from hold.
  • Baird named Peloton a positive fresh pick.
  • Deutsche Bank upgraded Papa John's to buy from hold.
  • Citi resumed Teladoc as buy.

Pro subscribers can read more here.

-Michael Bloom

Expect a 'multiday sell-off' in stay-at-home stocks, Cramer says

CNBC's Jim Cramer warned on Monday night that stay-at-home stocks — which have far outpaced the broader market during the coronavirus pandemic — could be under pressure for a few days given the optimism around the vaccine news from Pfizer and BioNTech.

"I think you have to be prepared for a multiday sell-off in the Covid names," the "Mad Money" host said. "These stocks have had huge gains. They're ripe for profit-taking."

Fred Imbert, Tyler Clifford

Stay-at-home stocks struggling

Some of the popular stay-at-home plays were poised to fall for the second-straight day following positive news on treatments and vaccines for the coronavirus. Shares of Netflix and Zoom Video were in negative territory during premarket trading. E-commerce giant Amazon was down 2% ahead of the opening bell.

— Jesse Pound

Ulta's stock jumps on Target partnership

Shares of Ulta popped more than 7% in premarket trading on Tuesday on news the beauty company has struck a deal to open skincare shops inside of hundreds of Target stores across the country.

Starting in the second half of next year, shoppers will find a smaller version of an Ulta store in more than 100 of Target's stores and on its website.

Shares of Ulta are down 40% this year as the pandemic caused a hit to consumer beauty spend.

—Maggie Fitzgerald

Eli Lilly's coronavirus drug cleared for emergency use

Eli Lilly's monoclonal antibody drug bamlanivimab was cleared by the Food and Drug Administration for emergency use late Monday, lifting the pharmaceutical's stock by 3.5% in the premarket.

The agency said the drug could be used to treat mild-to-moderate cases of Covid-19 in patients who are older than 12 years old.

Fred Imbert, Chris Eudaily

Travel stocks rise for the second day

Airlines and cruise lines rose again on Tuesday as promising vaccine news from Pfizer and BioNTech raised hope for a recovery in the travel industry.

Shares of Delta Air Lines rose 1.4% in premarket trading on Tuesday. Southwest Airlines and United Airlines gained 2.4% and 0.9%, respectively.

Carnival Corp. rose more than 4% before the bell and Norwegian Cruise Line and Royal Caribbean gained 2.8% and 1.95%, respectively.

—Maggie Fitzgerald

Dow set to jump as market rotation out of tech stocks continues

The Dow Jones Industrial Average was set to open higher on Tuesday as investors continued to rotate out of high-flying tech names and into beaten-down cyclical stocks.

Futures for the 30-stock average were up 245 points, implying an opening gain of 229 points. That pop would build on the Dow's 834-point surge on Monday. Boeing and Chevron rose 3.8% and 2.6%, respectively, in the premarket, and were among the biggest gainers in the Dow.

However, S&P 500 futures were flat and Nasdaq 100 futures dropped 1.5%, pressured by declines in tech shares. Amazon, Zoom Video and Netflix were all down more than 1% before the bell.

Both the Dow and S&P 500 were coming off a a record-setting session, hitting all-time highs on Monday after Pfizer and German biotech firm BioNTech announced their coronavirus vaccine was more than 90% effective in preventing Covid-19.

Fred Imbert