Stock market live Tuesday: Stocks rise, Nasdaq new record, Navarro gives overnight scare

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Stock market live Tuesday: Stocks rise, Nasdaq new record, Navarro gives overnight scare

After a wild overnight session that saw stock futures whipsaw on contradicting comments on the China trade deal, the market is aiming for a second

Stocks making the biggest moves midday: Morgan Stanley, American Airlines, Twitter, Nikola & more
Southwest posts $915 million loss, warns travel demand will remain weak without coronavirus vaccine
Stocks making the biggest moves in the premarket: Starbucks, Salesforce.com, Intuit, Peloton & more

After a wild overnight session that saw stock futures whipsaw on contradicting comments on the China trade deal, the market is aiming for a second day of gains this week, boosted by strong momentum in shares of big tech companies. The Nasdaq Composite hit an all-time high as Apple reached a record amid bullish comments about its latest announcements. 

4:45 pm: Tuesday’s session by the numbers

  • Nasdaq closed up 0.74% for its 12th positive day in 13 at a new record close of 10,131.37
  • S&P 500 closed up 0.43% for its third positive day in four
  • S&P 500 is down 3.08% year to date
  • Russell 2000 small caps closed up 0.41% for their third positive day in four
  • Small caps are down 13.73% year to date
  • Dow closed up 0.5% for its second straight positive day
  • Dow is down 8.35% year to date
  • Seven out of 11 sectors were positive Tuesday, led by consumer discretionary up 1.04%
  • Eight out of 11 sectors are negative year to date led by Energy down 34.61% year to date
  • Gold (AUG) settled up 0.88% at 1,782, hitting a high of 1,786.1 — its highest level since April 14 when gold traded as high as 1,788.8 —Francolla

4:01 pm: Stocks higher across the board

The U.S. markets lost steam late in the session but still finished higher on Tuesday, led by the tech-heavy Nasdaq up 0.7%. The Dow gained 150 points, or 0.5%, while the S&P 500 rose 0.4%. —Pound

3:02 pm: Final hour of trading: Stocks rally again, Nasdaq heads for 8-day rally

The major averages were headed for another day of solid gains Tuesday, as shares of major tech companies outperformed. The Nasdaq Composite rose more than 1%, putting the index on pace for its eighth straight day of gains. The Dow traded more than 200 points higher while the S&P 500 advanced 0.8%. —Imbert

2:02 pm: Advancers lead decliners 2-1 at NYSE

The number of advancing stocks at the New York Stock Exchange was double that of declining issues as the market rallied on Tuesday. Overall, 1,866 NYSE-listed stocks were positive while 981 declined, according to FactSet. —Imbert

1:27 pm: A wave of big selling about to hit the stock market

Wall Street analysts said it’s likely some asset allocators, like pension funds, would take profits from the stock market and shift to bonds at their quarter-end rebalancing a week from now. The amount of pension fund rebalancing is estimated in a wide range, with projections from $35 billion to $76 billion. “The end of the quarter is going to be pretty interesting, given how much the market has moved during this quarter. There could be volatility here,” said Dan Deming, managing director at KKM Financial. — Domm, Li

12:05 pm: Markets at midday: Apple leads market higher, Nasdaq hits record

Around midday, the major averages were sharply higher as Apple led a cluster of major tech companies. The Dow advanced 240 points, or 0.9%, while the S&P 500 climbed 1%. The Nasdaq Composite gained 1.4% and hit an all-time high. —Imbert

12:00 pm: JPMorgan sees ‘upside’ to Netflix second-quarter guidance on strong international growth

The firm reiterated its overweight rating and $535 price target on Tuesday morning, saying recent data showed user growth has been “stable” which “we believe suggests continued strong engagement and healthy subscriber retention,” the analyst wrote. The analyst also said if there is additional “upside” it’s likely from the streaming giant seeing robust download growth internationally. The stock is up 4% this week. — Bloom

11:56 am: Mexican stocks ETF off highs amid earthquakes reports

11:10 am: Stocks usually go down when they are this overvalued

Data compiled by RBC’s Lori Calvasina showed stocks could be in some trouble over the next year given how overvalued the market is. Calvasina said S&P 500 valuations were tracking at 1.64 standard deviations above their long-term average. On average, according to the data, the S&P 500 posts low single-digit losses one year out when valuations are this far above their long-term average. “Valuations are a clear negative for the US equity market,” said Calvasina. —Imbert

10:50 am: New home sales jump 16.6% in May

Sales of new U.S. single-family homes jumped 16.6% to a seasonally adjusted annual rate of 676,000 units in May, the Commerce Department said on Tuesday. April’s sales were revised down to 580,000 units from the previously reported 623,000 units. The latest data suggested the housing market is in the midst of recovery after being hammered by the coronavirus pandemic. —Li

10:45 am: Merck coronavirus treatment candidate is “underappreciated” Morgan Stanley says

The firm said investor’s have “not paid much attention to EIDD-2801, an oral antiviral for the treatment of patients with COVID-19,” analyst David Risinger said of overweight rated Merck. Coronavirus patients can “could take this oral after initial diagnosis to reduce disease severity and risk,” he said. “We think that investors under-appreciate Merck/Ridgeback’s oral antiviral candidate  for COVID-19, which has blockbuster potential if successful.” Shares are up 2% in early trading. —Bloom

10:20 am: Technology all-time highs 

  • Nasdaq Composite and Nasdaq-100 both hit new intraday all-time highs on Tuesday for the first time since June 10 after closing at new records Monday
  • Tech SPDR (XLK) hit a new intraday all-time high for the first time since June 10
  • DJ Internet ETF (FDN) hits a new intraday all-time high back to inception in 2006, on pace for its 8th straight day of gains
  • Tech-Software ETF (IGV) hit a new intraday all-time high back to its inception in 2001 — Francolla 

10:12 am: Penn National Gaming jumps on casino openings, future of sports betting

Shares of the Pennsylvania-based casino operator jumped more than 10% on Tuesday after CEO Jay Snowden said it has resumed operations in 30 of Penn National’s 41 properties and has plans to open the rest in the “coming weeks.” Snowden was joined by Barstool Sports founder Dave Portnoy on CNBC’s “Mad Money” on Monday. Portnoy made a long-term play when he sold a 36% stake in Barstool to Penn in January in a deal worth $450 million. Barstool will launch a sportsbook as part of the deal, and he expects it will be a “dominant player in the game” and an additive to the casino operator. “I can’t be more confident in what we’re building. Obviously, I’m biased, but I put my money where my mouth is,” Portnoy said. — Fitzgerald 

10:05 am: Manufacturing and services activity rebounds from May

The U.S. manufacturing PMI (purchasing managers’ index) jumped to 49.6 in June, a four-month high and a sharp rebound from 39.8 in May, according to IHS Markit. Any reading below 50 signals a contraction. On the services side, the IHS PMI rose to a reading of 46.7 in June, versus 37.5 in May. The improvement signaled an easing in the economic downturn as the lockdown started to lift. “The second quarter started with an alarming rate of collapse but output and jobs are now falling at far more modest rates in both the manufacturing and service sectors,” Chris Williamson, chief business economist at IHS Markit, said in a statement. “The improvement will fuel hopes that the economy can return to growth in the third quarter.” —Li

9:40 am: Here are Tuesday’s biggest analyst calls of the day: Apple, Micron, Peloton & more

  • UBS raised its price target on Apple to $400 from $325.
  • Cowen raised its price target on Peloton to $70 from $54.
  • BMO downgraded Micron to market perform from outperform.
  • Oppenheimer downgraded Mastercard to perform from outperform.
  • KeyBanc upgraded J.B. Hunt to overweight from sector weight.
  • Atlantic Equities upgraded AbbVie to outperform from equal weight.
  • Berenberg initiated Aaron’s as buy.

CNBC PRO subscribers can read more here. – Bloom

9:30 am: Stocks rise, Dow up more than 200 points

Stocks rose out of the gate on Tuesday, following assurances from the White House that the U.S.-China trade deal is still on. The Dow rose 227 points for a gain of 0.88%. The S&P 500 and Nasdaq Composite advanced 0.83% and 0.73%, respectively. Retailers and Big Tech were among the sectors fueling the market’s jump. – Stevens

8:32 am: Trump supports more stimulus payments, report says

President Donald Trump favors sending a second round of stimulus to Americans as the country fights through the recession, according to a Washington Post report. Congressional Republicans, though, may not be as willing to go along this time around, the report said, citing three sources familiar with the thinking inside the White House. As the national economy shut down to battle the coronavirus spread, Congress quickly pushed through $1,200 checks to individuals as part of a more than $2 trillion rescue package. Lawmakers have been negotiating since then over what a second round would look like, but another measure is unlikely to pass until sometime in July. – Cox

8:27 am: American Airlines drops another 5% in premarket

Shares of American Airlines fell 5.4% in premarket trading on Tuesday, after losing 6.7% in the previous session. The sharp declines came as the airline company moved to raise about $2 billion through convertible and secondary stock offerings to improve its liquidity as the company grapples with the coronavirus disruptions. The company on Tuesday priced an offering of 74.1 million shares at $13.50 a share and an offering of $1 billion of convertible bonds that mature in 2025 at 6.50%. Shares of American Airlines are down nearly 48% this year. –Li 

8:25 am: Tesla set up for a fall, Morgan Stanley says

Shares of Tesla are trading at more than $1,000 per share before the bell. Morgan Stanley’s Adam Jonas said in a new note that investors may be forgetting the difficulties and risks of the electric car company’s business that differentiates it from tech giants, which could lead to a big pullback.

CNBC PRO subscribers can read more here. —Pound

8:24 am: Oil rises following assurance that trade deal is on

Following a volatile overnight session, oil prices moved higher during morning trading after reassurance from the White House that the U.S.-China trade deal remains intact. West Texas Intermediate, the U.S. oil benchmark, rose 79 cents, or 1.9%, to trade at $41.52 per barrel. Earlier in the session WTI touched a low of $39.90. International benchmark Brent crude gained 83 cents to trade at $43.91 per barrel, after hitting a session low of $42.21. “Prices rose further on the relief that the US-China trade status remained intact and on indications that despite Covid-19 infections increasing, road fuel demand and global traffic are still standing strong,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets. On Monday, WTI settled above the key $40 mark for the first time since March. – Stevens

8:20 am: Retailers rise in premarket

Retail stocks moved higher on Tuesday morning as futures pointed to a strong open for the broader market. Kohl’s gained 2.3% in premarket trading, while discount retailer Five Below climbed 2.1%. Simon Property Group, the country’s largest mall owner, rose 2.7%, and apparel giant Nike moved 2.2% higher. —Pound

8:16 am: Bank stocks among best premarket performers

Shares of JPMorgan Chase, Citigroup, Wells Fargo and Bank of America all rose as the market was set to add to Monday’s solid gains. All four of those stocks gained more than 2% in premarket trading. Banks have caught a bid over the past month amid mounting bets on the global economy reopening, which would theoretically increase consumer spending and help these companies. —Imbert

8:03 am: Navarro sends the markets on a wild ride

White House trade advisor Peter Navarro spooked the markets last night by casting doubt on the China trade deal.

Navarro’s original comment came during a Fox News interview, when the trade advisor listed the complaints the White House has with Beijing over its handling of the Covid-19 outbreak. He was then asked about the trade deal: “Given everything that’s happened and all the things you just listed, is that over?” “It’s over,” Navarro replied.

U.S. futures sank after the comments. The trade advisor then walked back his comment, saying his words were taken “wildly out of context” and reassured that the deal is, in fact, not over. President Donald Trump also weighed in following Navarro’s Monday interview, writing on Twitter that “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!” Futures then recovered.

The about-face from the White House and whipsaw in equity futures highlight the fragility of the accord struck between the globe’s two largest economies earlier this year. Tensions have been rising between the U.S. and China in recent months over the origins of the coronavirus pandemic and Beijing’s influence over Hong Kong. — Franck

7:46 am: Cowen raises price target on Peloton to Street high

Shares of Peloton jumped more than 2% during Tuesday’s premarket trading after Cowen raised its target on the stock to a Street high of $70, which is roughly 32% above where shares closed on Monday. The firm, which has an outperform rating on the stock, previously had a $54 target.  “PTON remains uniquely well positioned via its vertically integrated model comprising … the pandemic has created a virtuous cycle driving both increased hardware demand as well as a surge in engagement and lower monthly churn levels (0.46% in F3Q),” analyst John Blackledge wrote in a note to clients. Shares of the exercise equipment maker have gained 86% this year. – Stevens

7:43 am: Apple set to hit fresh record high after WWDC

Apple shares rose more than 1% in the premarket following a slew of announcements from the tech giant at its annual WorldWide Developers Conference. The tech giant revealed iOS 14, a new operating system for its flagship iPhones and MacOS Big Sur, a new OS for its computers. Apple also said it will start using its own chips for its Mac computers, ditching Intel. Apple’s premarket gains put the stock on track to hit an all-time high at the open. — Imbert

7:20 am: Stocks set to jump, Dow to gain more than 200 points

U.S. stock index futures pointed to sharp gains at the open following comments from the White House that the U.S.-China trade deal remains in place. The Dow Jones Industrial Average was set to jump 268 points at the open for a gain of 1%. Futures on the S&P 500 were up 0.9%, while Nasdaq-100 futures gained 0.7%. 

Earlier Dow futures had plunged about 400 points after White House trade adviser Peter Navarro said that the deal was “over.” However, futures rebounded after he clarified his comments, saying that they were taken “wildly out of context.” President Donald Trump also weighed in on Twitter, saying the deal is “fully intact.”  

Stocks rose during Monday’s session as the market looked toward the economy’s reopening, although a rising number of Covid-19 cases in the U.S. and abroad capped the upside. The Nasdaq was the relative outperformer, and the tech-heavy index closed at a new record high. – Stevens 

– CNBC’s Jesse Pound, Yun Li, Patti Domm, Jeffrey Cox and Michael Bloom contributed reporting.

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