Dow closes higher Monday to notch four-day win streak: Live updates

Pro Picks: Watch all of Monday's big stock calls on CNBC
Pro Picks: Watch all of Monday's big stock calls on CNBC

The Dow rose slightly Monday, as Wall Street fought to hold onto last week's gains and investors braced for a busy week of economic news.

The Dow Jones Industrial Average gained 40.47 points, or 0.12%, to settle at 33,431.44. The S&P 500 added 0.07% to end at 4,048.42, while the Nasdaq Composite dipped 0.11% to close at 11,675.74.

At session highs, the Dow jumped 181 points, while the Nasdaq jumped nearly 1.2%.


Bond yields rose slightly, with the yield on the 10-year Treasury note last trading up more than a basis point after surging above the psychological 4% level at various points last week. An upward move raises borrowing costs for consumers and could signal a drop in investor confidence.

Despite these moves, some tech stocks pushed higher, with Apple jumping nearly 2% after Goldman Sachs initiated coverage with a buy rating. The iPhone maker accounts for about 7% of the S&P. Alphabet and Microsoft also gained.

Investors are awaiting Federal Reserve Chair Jerome Powell congressional testimony slated for Tuesday and Wednesday. The remarks will guide investors and lawmakers on how the central bank is thinking about inflation and its rate-hiking campaign, and they could determine where the market goes from here.

"It's prudent for the market not to get ahead of itself given that it's an important week that that can change the direction," said LPL Financial's Quincy Krosby, attributing Monday's moves to uncertainty heading into the busy week.

The packed economic data week caps off Friday with February's jobs data after January's blockbuster report showed the economy added 517,000 payrolls. Economists polled by Dow Jones expect 225,000 jobs added last month.

Dow closes higher

The Dow Jones Industrial Average finished slightly higher Monday, gaining 40.47 points, or 0.12%, to settle at 33,431.44.

The S&P 500 added 0.07% to end at 4,048.42, while the Nasdaq Composite dipped 0.11% to close at 11,675.74.

— Samantha Subin

Evercore ISI says these cloud stocks best positioned to benefit from AI demand

The need for better efficiency and faster networking as demand for large language models ramps up should bode well for shares of Cisco and Arista Networks, according to Evercore ISI.

"Hyperscalers will continue to be the major growth drivers in the market over the next five year, which should result in continued share gains for Arista, but we also think Cisco will continue to improve its positioning with cloud customers," wrote analyst Amit Daryanani in a Sunday note to clients.

A focus on AI could create a more than $5 billion total addressable market opportunity for networking companies and encourage companies to move away from "White box vendors," according to the firm.

Both of these companies supply switches for Microsoft, necessary as it pushes into AI and requires higher speeds.

— Samantha Subin

'I have the most confidence' in Merck, Joe Terranova says

Merck & Co. advanced 3.7% following the approval of a new way to administer some of its vaccines.

The Food and Drug Administration approved a new intra-muscular way to administer Merck's family of vaccines for measles, mumps, rubella and varicella, the health-care company said Monday. These vaccines, which include M-M-R II, Varivax and ProQuad, had previously only been administered through the skin.

Merck also announced results from multiple studies Monday.

The news was cheered by Joe Terranova, senior managing director at Virtus Investment Partners, on CNBC's "Halftime Report."

"This has been the stock that I've talked about for the better part of the last 15 months," he said. "It's the stock that I have the most confidence in. And now you're getting a little bit of fundamental news to contribute to strong technicals."

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— Alex Harring

Stock pare gains as final trading hour begins

All the major averages were higher but pared their earlier gains as the final trading hour kicked off.

The S&P 500 index added 0.16%, while the Dow Jones Industrial Average rose just 19 points, or 0.05%. The Nasdaq Composite traded flat.

— Samantha Subin

S&P 500 holds key technical level, adds to positive tone

The S&P 500 has held above its 200-day moving average after testing the level last week.

The 200-day, at roughly 3,940, is the average of the last 200 closing prices and is viewed as a momentum indicator. Holding above it is viewed as a positive test of the index which has been above the 200-day for more than a month.

Technical strategists said the index is trading predominantly on the direction of interest rates. Stocks were pressured last week as rates rose. But the 10-year Treasury yield has fallen below the psychological 4% level, viewed as a positive for stocks. It rose above 4% last week, for the first time since November.

— Patti Domm

Apple is 'trying to restore its positive momentum,' Halftime Report trader says

Apple shares gained more than 2.5% in Monday's session following a bullish call from Goldman Sachs.

The Wall Street firm initiated coverage of the big technology stock as a buy. The bank's price target implies the stock could rally more than 30%, which it tied in part to growing strength in its services and subscription offerings.

"You got a fresh voice now looking at the stock reversing either the neutral-sell signals that Goldman Sachs had the last five years," said Joe Terranova, senior managing director for Virtus Investment Partners, on CNBC's "Halftime Report."

"I think what's going on currently with Apple is that it's trying to restore its positive momentum," he added. "The fundamentals were never in question for this company. It was all about the momentum."

The stock is up 19.4% so far this year, regaining lost ground after sliding 26.8% in 2022.

While investors can be safer in Apple, the stock won't able to avoid the broader market trend, said Sarat Sethi, managing partner at Douglas C. Lane & Associates.

"I do think once we get through this, we're gonna focus back on earnings and we're gonna focus on what macro is going to do to the overall market," he said.

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— Alex Harring

The explosion of zero-day options could worsen market shocks, JPMorgan says

JPMorgan is warning about a "Volmageddon 2.0" with the explosion in the use of zero-days-to-expiration options, estimating that these risky contracts could exaggerate declines to as much as 20% during market turmoil.

0DTE options are contracts with a fleeting shelf life, expiring the same day that they're traded. Daily notional volumes in these 0DTE options that track the S&P 500 recently reached a record above $1 trillion, according to JPMorgan data. 

— Yun Li

Altria to buy e-cigarette startup NJOY

Altria said Monday it's buying e-cigarette startup NJOY for $2.75 billion as the maker of Marlboro attempts to expand its smoke-free product portfolio.

As part of the deal, Altria will own NJOY ACE, the only pod-based e-vapor product with market authorizations from the FDA.

The announcement comes shortly after the tobacco products maker ditched its stake in e-cigarette maker Juul.

Altria shares were last up 1%.

— Samantha Subin

Apple extends 3-day rally to as much as $11 or 7.6%

Apple is having an outsized influence on the S&P 500 Monday because, well, — Apple is outsized (with a $2.47 trillion market value, Apple is the single largest stock and accounts for 6.82% of the entire index.)

In late morning trading Monday, Apple alone added about a point to the S&P 500's advance. Together with Microsoft and Amazon and Alphabet, the four combined to add almost two points.

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Apple year to date 2023

Apple extended its latest advance to three days, during which it's climbed about $11 per share or 7.6%, just since the market close on Wednesday March 1.

A new analyst at Goldman Sachs on Monday began research coverage of Apple with a buy rating and a $199 price target, saying Apple could get a big boost from its services business.

According to FactSet data, Apple is 13% below its 52-week high reached last March 30, 2022, but 26% above the 52-week low that it touched last January 3, 2023.

Month-to-date, Apple is about 5.8% higher, bringing the year-to-date gain to a shade above 20%. The iPhone maker is trading about 10% above its 50-day moving average, and sports a consensus price target among analysts of $169 -- representing potential upside of almost 9%.

— Scott Schnipper

Norfolk Southern shares fall after weekend derailment

Shares of Norfolk Southern fell about 2% Monday after another one of the freight railroad company's trains derailed over the weekend in Ohio.

An internal email obtained by CNBC also indicated that the company is planning broad safety adjustments, which includes reducing its train lengths.

The derailment marks the third incident for the freight railroad in a little over a month. That included the toxic disaster in East Palestine, Ohio.

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Shares fall after train derailment

— Samantha Subin, Lori Ann LaRocco

JetBlue climbs following report of possible DOJ suit over Spirit deal

The proposed JetBlue-Spirit deal could face an antitrust suit from the Department of Justice as soon as tomorrow, according to a report from Bloomberg.

Spirit agreed to a $3.8 billion offer from JetBlue last July after a bidding war with Frontier Airlines. The Justice Department could still try to block the deal entirely or call for some divestitures from the proposed merged company.

Shares of JetBlue rose following the report and are up about 4% for the day. Shares of Spirit are now down about 5.7%.

— Jesse Pound

Jefferies sees tougher times ahead for luxury furnishings retailer RH

With luxury home prices continuing to weaken from Marin County to Telluride to Boston, Jefferies analyst Jonathan Matuszewski slashed his rating on RH to hold from buy. He said investors aren't fully appreciating the trouble ahead for the luxury furnishings retailer as its core customers get hit with lower bonuses, falling compensation and layoffs.

"March '23 data shows [investment banking] bonuses fell 30-50%. Mid-level [private equity] professionals down ~33%. Median pay of $220-290K for Feb. '23 tech layoffs vs. $120-170K for Dec. '22 riffs. Luxury furnishings category has not yet felt the ripple effect," he wrote.

RH were recently trading down more than 4% on the downgrade. The stock has been an outperformer so far this year. Through Friday's close it was up 11% year to date vs. the S&P 500's 5% gain.

—Christina Cheddar Berk

More than 40% of new S&P 500 52-week highs Monday are all-time records

Eight of the 19 stocks in the S&P 500 making new 52-week highs on Monday also touched all-time highs: 

  • MGM Resorts (MGM), highest since Feb. 2022
  • Arch Capital Group (ACGL), all-time high back to start of Nasdaq trading in 2000
  • Progressive (PGR), all-time high back to 1971 IPO
  • Carrier Global (CARR), highest since Jan. 2022
  • Eaton Corp (ETN), all-time high back to 1923 IPO
  • General Electric (GE), highest since Nov. 2021
  • WW Grainger (GWW), all-time high back to start of trading in 1967
  • Ingersoll-Rand (IR), highest since Jan. 2022
  • Otis Worldwide (OTIS), highest since Jan. 2022
  • PACCAR (PCAR), all-time high back to 1971 IPO
  • Parker Hannifin (PH), all-time high back to 1964 IPO
  • Rockwell Automation (ROK), highest since Jan. 2022
  • TransDigm Group (TDG), all-time high back to 2006 IPO
  • Trane Technologies (TT), highest since Jan. 2022
  • Westinghouse Air Brake Tech (WAB), highest since 2018
  • Fiserv (FISV), highest since August 2021
  • First Solar (FSLR), highest since 2008
  • Steel Dynamics (STLD), all-time high back to 1996 IPO
  • PG&E (PCG), highest since Feb. 2020

 Outside the S&P 500, these stocks also touched 52-week highs early Monday:

  • Liberty Media Corp Formula One (FWONA), all-time high
  • Liberty Media Corp Formula One (FWONK), all-time high
  • Hyatt Hotels (H), all-time high back to 2009 IPO
  • Interactive Brokers Group (IBKR), all-time high back to 2007 IPO
  • Builders FirstSource (BLDR), all-time high back to 2005 IPO
  • Kirby (KEX), highest since Jan. 2020
  • Allegro MicroSystems (ALGM), all-time high back to Oct. 2020 IPO
  • Axalta Coating Systems (AXTA), highest since Jan. 2022
  • Gaming and Leisure Properties (GLPI), all-time high back to 2013 IPO
  • BWX Technologies (BWXT), highest since June 2021
  • Shift4 Payments (FOUR), highest since Nov. 2021
  • US Foods (USFD), highest since May 2021
  • Vitesse Energy (VTS), all-time high since spin-off from Jefferies in Jan. 2023

— Scott Schnipper, Christopher Hayes

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

Snap — The tech company's shares gained almost 13%, having their strongest day since November. Shares gained as U.S. lawmakers prepare legislation that would give President Joe Biden the authority to ban TikTok, one of Snapchat's primary competitors.

Apple — Shares advanced more than 3% after Goldman Sachs initiated coverage of the big technology stock as a buy. The firm said Apple could get boosted by its services business.

Credit Suisse — Shares were down about 1% after former top shareholder Harris Associates sold its entire stake in Credit Suisse, according to a Financial Times report. Harris Associates CIO David Herro said there are questions about the future of the franchise and large outflows from its wealth management division.

Check out the rest of the list here.

— Hakyung Kim

Drug trials could help Vir Biotechnology, JPMorgan says

The strength of Vir Biotechnology's drug pipelines — and in particular one aimed at preventing the flu among older adults — are underappreciated, according to JPMorgan. That could be good for the stock.

Analyst Eric Joseph upgraded the stock to overweight from neutral. He shaved $1 off his price target to $34, which still implies an upside of 48.9% from Friday's close.

"Vir Biotechnology holds long-term pipeline opportunities across multiple infectious disease indications including hepatitis B, and Influenza A," he said in a note to clients Monday.

The newest data on the flu study could send the stock up 50% or down 10%, Joseph estimated.

The stock leapt more than 1% following the upgrade. But it's down nearly more than 8% so far in 2023, adding to a loss of nearly 40% seen in 2022.

CNBC Pro subscribers can click here to read more.

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— Alex Harring

Information technology, communication services lift S&P 500

Nine of the eleven major S&P 500 sector rose Monday, led to the upside by information technology and communication services.

Both sectors rose more than 1.4% each as of 11:43 a.m. EST, boosted by fintech, cloud and big tech stocks. Shares of Micron Technology and Arista Networks added about 2% each, while Apple gained 3%. Alphabet, Meta Platforms and Netflix and Microsoft also rose about 2%.

Materials was the worst-performing sector, falling more than 1%. Declines in shares of International Paper, Dow and Mosaic contributed to those losses.

The energy sector dipped about 0.5% as oil prices declined.

— Samantha Subin

Defense stock ETF hits 3-year high, led by Northrop and Lockheed

iShares US Aerospace & Defense ETF (ITA) rose about a third of a percent intraday Monday, touching its highest since February 2020 and rallying for a fourth consecutive day.

Virgin Galactic (SPCE), Northrop Grumman, Lockheed Martin helped lead the rally, while both TransDigm (TDG) and BWX Tech (BWXT) hit new multiyear highs.

Virgin Galactic has rebounded about 63% year-to-date, TransDigm is up 22% YTD and BWX by about 9%. Northrop is down 13% so far in 2023, while Lockheed is off about 1%.

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Virgin Galactic year-to-date

— Gina Francolla, Scott Schnipper

Morgan Stanley names Ferrari its top pick, replacing Tesla

Morgan Stanley replaced Tesla as its firm-wide top pick with Ferrari.

Analyst Adam Jonas increased Ferrari's price target by $30 to $310, implying the stock could rally 14.2% over the next year. He said the carmaker's defensiveness and hard-to-replicate luxury brand would be assets in amid a changing economic backdrop.

"We believe RACE is the best positioned company in our coverage in a highly uncertain macroeconomic and geopolitical tape," he said in a note to clients Monday. "In addition to its strong fundamentals, we believe RACE has levers to pull for both growth or downside protection, within a wide dispersion of macro outcomes."

He also said the stock "avoids much of the EV hype and EV risk." Still, he said the company had an underappreciated opportunity in the space as it could move away from internal combustion engines without losing the core of the brand.

Ferrari shares gained about 1%, while Tesla dipped about 1%.

— Alex Harring

Tesla shares fall following vehicle price cuts

Tesla's stock slipped 1% after the electric vehicle maker implemented price cuts on its two most expensive models in the U.S. to improve demand.

Following the price cuts, the Tesla Model S now starts at $89,990, according to Tesla's website. That's about 5% below its previous price. The Model X, meanwhile, begins at $99,990, representing a 9% reduction in cost.

— Ryan Browne, Samantha Subin

Factory orders slide less than economists expected in January

Factory orders slipped less than expected in January, according to data released Monday morning.

Net orders fell 1.6% from December, a small drop than the 1.8% slide expected by economists polled by Dow Jones.

The data is part of the the Manufacturers' Shipments, Inventories and Orders survey, which evaluates economic conditions within domestic manufacturing.

— Alex Harring

KB Home dips 1% after JPMorgan double-downgrade

JPMorgan double-downgraded KB Home and said its valuation was too high. The stock was last down about 1%.

Analyst Michael Rehaut moved the homebuilder to underweight from overweight. Rehaut cut his price target by $3.50 to $32.50, which implies the stock will fall 9.1% from Friday's close.

"We view its valuation ... as expensive relative to our outlook for below average gross margins, operating margins and ROE," he said in a Monday note to clients.

CNBC Pro subscribers can read the full story here.

— Alex Harring

Stocks open slightly higher

The major averages opened slightly higher to start a big week for economic data.

The S&P 500 added 0.25%, while the Nasdaq Composite jumped 0.4%. The Dow Jones Industrial Average rose just 46 points, or 0.14%.

— Samantha Subin

Natural gas tumbles

Natural gas plunged on Monday after posting its best weekly performance since August 2020.

Natural gas was last down nearly 13% and on pace for the worst day since late January.

The move in natural gas follows a nearly 23% jump last week. On Friday, it gained 8.82%.

For the year, natural gas sits about 41% lower.

— Samantha Subin

Companies making the biggest premarket moves

Here are some names making the biggest moves in the premarket:

  • Ferrari — The luxury automaker gained less than 1% after Morgan Stanley analyst Adam Jonas named it a top pick, replacing Tesla. Jonas cited Ferrari's backlog and pricing power as reasons to raise his price target on the stock by more than 10%.
  • KB Home — The homebuilder shed 1.85% after being double downgraded to underweight from overweight by JPMorgan. The firm cited the stock's expensive valuation.
  • Vir Biotechnology — The biotech rose 4.2% following an upgrade to overweight from neutral from JPMorgan. The firm said Vir has long-term pipeline opportunities across numerous disease indications.

To see more premarket movers, read our full story here.

— Michelle Fox

Earnings fell 3% this cycle, Oppenheimer says

According to Oppenheimer, 496 of the firms in the S&P 500 have now reported earnings for this cycle.

Revenue grew 5.6% year over year, but earnings fell by 3%, Oppenheimer chief investment strategist John Stoltzfus said in a note to clients on Monday.

"Results have been mixed with three sectors showing double-digit earnings growth from a year earlier, one showing single digit growth and seven showing declines," Stoltzfus said.

The three best sectors have been energy, consumer discretionary and real estate, while communications services performing the worst with an earnings decline of 25.6%, according to the note.

— Jesse Pound, Michael Bloom

Wells Fargo's Harvey says recent stock bounce has room to run, equities no longer in a bear market

The recent bounce in equities may have further room to run, according to Wells Fargo equity analyst Chris Harvey.

"Do not trade as if we're in a bear market, because we are not," he said in a note to clients Monday. "The recent reset of Fed Funds expectations helped create the set-up for the bounce from Thursday's intraday SPX low of 3928."

Harvey also called signs that the market's made higher lows and higher highs since September, a "small positive" for equities.

— Samantha Subin

Goldman Sachs sees more than 30% upside for Apple

Goldman analyst Michael Ng initiated Apple with a buy rating and a price target of $199, implying upside of nearly 32%.

"The majority of gross profit growth over the next 5-years should be driven by Services, which should mark an inflection point in the Services investment narrative and support AAPL's premium multiple," he said in a note to clients Sunday. "The durability of Apple's installed base and the resulting revenue growth visibility from attaching more Services and Products is what underpins the recurring revenue - or Apple-as-a-Service - opportunity."

— Alex Harring

European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 14 points higher at 7,626, Germany's DAX 13 points higher at 15,837, France's CAC up 4 points at 7,253 and Italy's FTSE MIB 17 points higher at 26,579, according to data from IG.

Earnings come from Tate & Lyle, Manchester Utd, Johnson Matthey, United Utilities and Pets at Home. Data releases include a detailed breakdown of Germany's first-quarter gross domestic product.

— Holly Ellyatt

CNBC Pro: Goldman Sachs has added 3 stocks to its conviction buy list, giving one 100% upside

Goldman Sachs has this year added a number of stocks to its conviction list. These are buy-rated stocks it expects to outperform, and it gave them further share price upside.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Wall Street pros name the biggest risk to stock markets — and reveal how to trade it

Stock markets are broadly in the green this year, but there is an uneasiness about the rally, with several risk factors still afflicting the market.

How should investors trade the market? Wall Street pros weigh in with their top ideas.

Pro subscribers can read more here.

— Zavier Ong

CNBC Pro: These 3 stocks have gained every year for a decade — and are expected to keep rising

Only three stocks have had positive returns this year and every year for the past decade, data shows.

To find them, CNBC Pro screened more than 1,500 stocks across 23 countries to find those with positive returns every year for the past 10 years.

One of the stocks is also the largest holding in the only ETF that's posted gains yearly for the past decade.

CNBC Pro subscribers can read more about 3 stocks here.

— Ganesh Rao

CNBC Pro: Daily trading in zero-day options hits a record $1 trillion, fueling concern of ‘Volmageddon 2.0’

Zero-day-to-expiration options are not for the faint of heart, but they still exploded in popularity as of late, spurring concerns of exaggerated volatility in the market.

Daily notional volumes in these 0DTE options that track the S&P 500 index exploded to reach a record $1 trillion, according to JPMorgan data. Marko Kolanovic, the top strategist at JPMorgan, warns of the risk of "Volmageddon 2.0" if the activity continues to accelerate. Meanwhile, Goldman Sachs' trading desk called the record volume in these fleeting contracts "staggering."

CNBC Pro subscribers can read the full story here.

— Yun Li

January factory orders data set to release Monday

Investors expect the latest factory orders data that's set to release 10 a.m. ET on Monday could give insight into conditions in the manufacturing sector.

Economists polled by the Dow Jones are anticipating a fall of 1.8% in January, a decline from the 1.8% gain in the prior reading.

— Sarah Min

Stock futures open little changed

U.S. stock futures were little changed on Sunday night as Wall Street looked ahead to a week filled with economic data and the latest commentary from the Federal Reserve.

Dow Jones Industrial Average futures fell by 44 points, or 0.13%. S&P 500 and Nasdaq 100 futures dipped 0.1% and 0.12%, respectively.

— Sarah Min