Stock market live Monday: S&P 500 and Nasdaq hit records, Amazon all-time high, Casper sinks
This is a live blog. Check back for updates.
4:01 pm: S&P 500, Nasdaq close at records as Amazon jumps
The S&P 500 and Nasdaq rose to new closing highs on Monday, boosted by a 2.6% jump in Amazon shares, as investors looked past the potential economic impact from the deadly coronavirus. Monday's climb brought the S&P 500 and Nasdaq's year-to-date gains to 3.7% and 7.3%, respectively. The Dow advanced about 170 points Monday, lifted by big gains in Microsoft and Boeing. –Li
3:50 pm: Slack is halted for news pending
shares were halted for news pending. The shares were up 15% on Monday before they were halted. The work messaging company is reportedly signing its biggest deal ever with IBM, according to an earlier report by Business Insider. -Melloy
3:46 pm: Coronavirus is a "black swan" for oil and energy markets, says Ned Davis Research
Ned Davis Research's Warren Pies said Monday that the coronavirus is a "black swan" for the oil and energy markets. On Monday, U.S. West Texas Intermediate crude fell to a 13-month low as fears of a global economic slowdown and therefore reduced demand for oil continues to pressure prices. WTI and international benchmark Brent crude are coming off a fifth straight week of losses, and are both currently trading in bear market territory. "Maybe the storm passes quickly. Our best guess, however, is that crude oil and energy equities will see more weakness before this is over," Pies said. –Stevens
3:32 pm: Recent rebound is concentrated in big tech stocks
The S&P 500 has been mostly flat over the past three weeks as large tech stocks have offset weak performance elsewhere in the market, CNBC's senior markets commentator Michael Santoli said on "Closing Bell." That lack of breadth is probably not sustainable, Santoli said. "Clearly, the U.S. market is the haven in the world. Tech is the haven within the U.S. market, or is perceived such. And software and mega-cap tech, within tech, is what is working right now," Santoli said. "We'll see how narrow we can get before perhaps we have a little bit of pullback activity." — Pound
3:00 pm: Final hour of trading: Nasdaq heads for record close, led by Amazon
With roughly one hour left in the trading session, the major averages were set to recover some of Friday's losses. The Nasdaq Composite traded in record territory along with Amazon shares. The Dow was up about 90 points, or 0.3%. The S&P 500 gained 0.4%. Amazon's gains, along with those from Netflix and Alphabet, helped investors shrug off coronavirus-related concerns. However, the virus remains a problem for Wall Street as it could dent global growth. —Imbert
2:54 pm: Key part of the yield curve inverts again
The yield on the 10-year Treasury note, which moves inversely to price, dipped three basis points to around 1.543% Monday. The benchmark yield also fell below the 3-month Treasury rate of 1.558%, inverting the part of the yield curve that the Federal Reserve watches closely for signs of a recession. This phenomenon occurred briefly last month as investors feared the coronavirus would disrupt the global economy. The 10-year yield has plunged about 40 basis points in 2020 so far. — Li
2:48 pm: Casper sinks in third day of trading
Shares of mattress retailer Casper fell 9% on Monday and are now trading at roughly $10.05 per share. The company priced its IPO last week at $12 per share on Wednesday evening and then began trading at $14.50 per share the following day. Today's fall marks a decline of about 31% from where it opened in its market debut. — Pound
2:11 pm: Market trend is strong despite coronavirus fears
Investors may be grappling with concerns over the economic impact of the coronavirus, but J.C. O'Hara of MKM Partners points out the broad market trend remains strong on a technical basis. In a note to clients Sunday, he highlighted that the S&P 500 is trading above its 50-day, 100-day and 200-day moving averages. Those are short, intermediate and longer-term technical levels followed by traders and analysts. Given this "extremely strong trend," O'Hara said investors "must maintain a healthy degree of equity exposure." —Imbert
1:59 pm: February historically a perfectly flat month for stocks in an election year
Going back to 1950, the S&P 500 has yielded no gains or losses on average in the month of February during an election year, according to Ryan Detrick, senior market strategist at LPL Financial. As of Monday, the S&P 500 has risen 3.4% this month despite lingering fears about the coronavirus. If history is any guide, there could be losses ahead in the three remaining weeks this month. —Li
1:00 pm: Brace for profit warnings, BCA Research says
The coronavirus outbreak will cut global growth from 3.3% to 1.7% during the first quarter of the year and take a bite out of profits for companies with exposure to China, BCA Research said in a note to investors."Investors should brace for a slew of profit warnings over the coming weeks from companies with significant operations in China," the note said. "The near-term economic data is also likely to disappoint." If the outbreak is contained soon, global growth may only see a dent of 0.3 percentage points for the entire year, the note said. — Pound
12:19 pm: Stocks at midday: Amazon leads market-wide rebound
Around midday ET, the major averages were trading higher, recovering from losses earlier in the day as Amazon shares climbed to all-time highs. The Dow traded around 50 points higher, or 0.2%, while the Nasdaq hit a record. The S&P 500 was up 0.3%. If those gains hold, it would be the fifth positive day on Wall Street in six. —Imbert
12:09 pm: Stocks bottomed on the same day conoravirus Google searches peaked
The S&P 500's recent low of $3,225.52 on Jan. 31 coincides with the biggest number of global Google searches for "coronavirus," Bespoke Investment Group pointed out in a tweet on Monday. When stocks hit their lows, the deadly Chinese virus searches peaked. With a large amount of Chinese factories closed, investors are worried about the virus's impact on China's supply chain and a possible dent to global growth. The S&P 500 is currently trading up 0.34% at $3,338.91 per share. – Fitzgerald
11:52 am: Remember the maxim about bull market surprises
Strategist Jeffrey Saut put out a note Monday reminding investors of an old market saw: "In secular bull markets most of the surprises come on the upside." Nevertheless, he concedes he was surprised by last week's market performance amid the coronavirus scare. "We were surprised by last week's upside action since we turned cautious on stocks around mid-January," he wrote. A new all-time high came even as the coronavirus story worsened. "Then there is the mess surrounding the Iowa caucuses and Nancy Pelosi's shredding of the State of the Union speech," Saut added. — Lewis.
11:35 am: Stocks diverge from oil and copper in a big way
As stocks recover to trade near record highs, oil and copper prices continue to dip to multi-month lows. The divergence between the different assets caught the attention of some on Wall Street, calling for the gaps to shrink. "If the stock market is right, copper and oil are buys here," Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in an email. "If stocks are not, then something should give and this gap should narrow." The S&P 500 had its best weekly performance since June last week, while oil has fallen for five straight weeks. "This said, I'm not always a fan of this kind of analysis as stocks are a long duration asset but the visual and action is worth paying attention to," Boockvar added.— Li
11:10 am: ETFs hitting all-time highs
A handful of exchange-traded funds hit record high intraday levels on Monday. The Aerospace & Defense ETF (ITA) touched an all-time high, led by gains in Boeing and Axon. Likewise, two growth ETFs – for the Russell 100 (IWF) and S&P 500 Growth ETF (IVW) – rose to record levels, with the former being led higher by gains in Roku and Lyft. – Sheetz
10:50 am: Nasdaq hits record high, Dow up more than 100 points
The Nasdaq rallied 0.5% to a new intraday high, led by a 1.7% jump in Amazon shares, which also scored a record. The Dow is now up about 110 points to its session high. The declines in Exxon Mobil and Goldman Sachs capped the gains in the 30-stock benchmark. —Li
10:37 am: Bill Ackman trims stake in Chipotle, still owns 1.5 million shares
Longtime activist investor Bill Ackman trimmed by 1% his stake in Chipotle Mexican Grill, one of Pershing Square's best investments in recent years. Filings at the Securities and Exchange Commission show Ackman's Pershing Square sold about 215,000 shares on Feb. 6 and Feb. 7 for about $860 per share. Pershing Square Holdings, which first invested in Chipotle at around $405 per share, soared 58% in 2019, making it one of the globe's best-performing hedge funds last year. The fund has touted Chipotle both as a smart investment as well as a return juggernaut since its initial investment in 2016. Chipotle, which returned 93% last year, accounted for 14.7% of Pershing Square Holdings gross returns in 2019. —Franck
10:23 am: Big moves are the norm for Tesla shares
Tesla's reputation as a volatile stock has been well deserved thus far in 2020. The electric car maker's stock has posted a move of less than 1% in just five of the 26 trading days this year through Friday's close. By comparison, the S&P 500 has had just five moves of at least 1% all year. Tesla was headed for another major move on Monday, trading more than 5% higher. —Imbert
9:46 am: Stocks erase losses at the open with major averages turning positive
The Dow was quick to bounce back from a 106.85-point loss, trading back around the flatline after its initial decent at the open. The S&P 500 and Nasdaq Composite also rebounded from their slight losses at the open. Shares of Amazon and Microsoft are leading the comeback—Imbert
9:45 am: Apple's manufacturing in China is still in limbo amid coronavirus
Apple's iPhone production in China remains uncertain amid the coronavirus outbreak. Apple supplier Foxconn was approved to resume production in Zhengzhou, a key manufacturing plant in the region, Reuters reported Sunday, but so far only 10% of the workforce has returned. The tech giant has shut down all stores and offices in the country. Shares of Apple are down 0.4% in morning trading. —Li
9:31 am: Dow slips 100 points at the open
The Dow Jones Industrial Average fell about 100 points, on track for its second straight day of losses, as fears around the deadly coronavirus linger. Apple is the biggest loser in the 30-stock index, down more than 1%. The S&P 500 dipped about 0.3% at the open, following a 3% rise last week, which is the benchmark's best weekly performance since June. —Li
9:05 am: Liquidity-driven bull market still in control, Morgan Stanley says
The rebound in stocks despite the lingering coronavirus fears showed that the bull market is still strong, Morgan Stanley's Michael Wilson said in a note to clients, and supports his first-half bull case of 3500 for the S&P 500. If economic growth snaps back after the virus is contained, the market may finally see a sustained rotation into smaller cap and value stocks, Wilson said, after several smaller rotations in recent years. "Bottom line, the liquidity-driven bull market is intact but it's too early to bet big on new trends in cyclical value or small-caps," Wilson wrote. — Pound
9 am: Tesla jumps in premarket
Tesla's stock rose as much as 9% in premarket trading on Monday as shares were poised to begin another week of speculative trading. Part of the reason appears to be positive news from China on Friday, as the Shanghai municipal government said it would help companies like Tesla "resume production as soon as possible." The stock is set to open near the $800 level. —Sheetz
8:57 am: Yum China under pressure after employee confirmed to have coronavirus
Shares of Yum China slid 1.3% after Chinese state-run media Global Times reported a KFC worker was confirmed to have the deadly coronavirus. Yum China has temporarily closed about a third of its restaurants in China, and those still open have seen sales drop dramatically. The company warned last week that coronavirus could lead to operating losses in its first quarter. —Li
8:55 am: Here are Monday's biggest analyst calls of the day
- RBC raised its price target on Nvidia to $301 from $251
- UBS upgraded FedEx to buy from neutral
- Wells Fargo downgraded World Wrestling Entertainment to underweight from overweight
- Goldman Sachs downgraded Canada Goose to neutral from buy
- Northcoast upgraded Lyft to buy from neutral
CNBC Pro subscribers can read more here. —Bloom
8:53 am: Taubman Centers' stock surges 53%
Shares of mall operator Taubman Centers jumped 53% during Monday's premarket trading after the company said it would be acquired by competitor Simon Property Group for $52.50 per share, valuing the company at about $3.6 billion. Taubman owns, manages or leases 26 super-regional shopping centers in the U.S. and Asia, a press release said. — Stevens
8:52 am: Loews up more than 3.5% ahead of open on profit surge
Loews, the conglomerate that owns businesses in insurance, hospitality, energy and packaging, on Monday reported a sharp rebound in fourth-quarter profit and better-than-expected revenues. Loews posted net income of $217 million, or 73 cents a share, compared to a loss of $165 million, or 53 cents a share in the year-ago period. The company mainly credited increased net investment income at its CNA Financial business for the better profit and revenue results for the three months ended Dec. 31. The stock rose more than 3.5% before the opening bell. —Franck
8:41 am: Sanders nomination would raise Trump reelection odds: Raymond James
Though conventional wisdom in the 2020 election cycle thus far has been that markets would sell off if Democrats nominate Sen. Bernie Sanders for president, that appears to be changing according to Raymond James. Analyst Ed Mills writes that conversations with investors have revealed that many believe the nomination of the self-described democratic socialist would not only make President Donald Trump's reelection more likely, but perhaps increase the odds of an all-Republican government.That's why stocks haven't swooned in reaction to the Vermont senator's recent success in Iowa or expected victory in the New Hampshire primary, Mills wrote, as Wall Street views a second Trump term as a positive for the market. —Franck
8:32 am: Canaccord Genuity hikes S&P 500 target for 2020
Canaccord Genuity on Monday announced it upgraded its 2020 outlook for U.S. equities, telling clients it sees the S&P 500 at 3,440 by December. Strategist Tony Dwyer cautioned, however, that he's neutral on the stock market until S&P 500 earnings show more robust signs of growth and the threat of the coronavirus has passed despite positive fiscal and monetary policy backdrops. His new target implies just 3.4% upside between Friday's close and the end of 2020. —Franck
8:24 am: FedEx shares pop on UBS upgrade
Shares of shipping company FedEx rose nearly 2% in premarket trading on Monday following an upgrade to buy from neutral from UBS. The firm said the risk/reward for the company appears "skewed to the upside." With shares down 12% in the past 12 months, now is a good time to buy, according to UBS. The analyst also hiked his price target to $187 per share from $161 per share. —Fitzgerald
8:22 am: Stock futures head for flat open after Friday's big drop
U.S. stock futures are pointing to a relatively flat open as investors continue to assess how the coronavirus outbreak will impact China's economy, which is the second-largest in the world. Dow Jones Industrial Average futures indicated a loss of just 22 points. S&P 500 and Nasdaq 100 futures hovered along the flatline. The death toll from the coronavirus has broken above 900, surpassing that of the SARS outbreak in the early 2000s. The major averages are coming off steep losses from Friday's session, with the Dow dropping more than 200 points. —Imbert
With reporting from Pippa Stevens, Yun Li, Jesse Pound, Maggie Fitzgerald, Al Lewis, Michael Bloom and John Melloy.