Final hour of trading: Nasdaq loses steam as tech shares slip

The Nasdaq Composite traded slightly lower with roughly one hour left in the session as Amazon shares declined and Netflix pulled back from an all-time high. The S&P 500 and Dow were also under pressure, falling 0.6% and 0.96%, respectively. — Fred Imbert

Stocks back to their lows of the day

Stocks fell back to session lows in afternoon trading with the Dow dropping about 260 points and the S&P 500 dipping 0.6%. The Nasdaq Composite erased earlier gains and fell about 0.3% as Amazon, Netflix and Alphabet slid into negative territory. The sell-off in reopening trades also deepened as American Airlines and United plunging more than 6% each. A few technology names including Facebook and Apple, as well as Walmart, were the only pockets of strength. —Yun Li

Bank of America clients are net sellers of stocks in back-to-back weeks

Data compiled by Bank of America showed the firm’s clients were net sellers of stocks for a second consecutive week as the number of newly confirmed coronavirus cases continued to rise. “Selling was chiefly in single stocks, which saw outflows in seven out of the last ten weeks,” wrote a team of strategists led by Jill Carey Hall. Excluding ETFs, BofA clients sold just over $2 billion in U.S. stocks. —Fred Imbert

Soc Gen upgrades Bank of America and Citi to buy

Soc Gen upgraded Bank of America and Citi to buy from hold on Tuesday and said it saw a “path to respectability” for both stocks as “loan losses normalise and robust capital positions underpin the return of buybacks.” The firm said it had now become “bullish” calling Citi and Bank of America “cheap.” Shares of both companies were down almost 3% in midday trading. – Michael Bloom

Hirings surge and layoffs plunge at record levels in May

The U.S. jobs market saw its biggest monthly hiring gain and sharpest decrease in layoffs during May as the economy restarted following the coronavius freeze. The Labor Department’s closely watched Job Openings and Labor Turnover Survey also showed an 8% rise in openings and a sharp increase in quits, a gauge of worker confidence. Fed policymakers watch the JOLTS report closely for signs of labor slack. —Jeff Cox

Stocks making the biggest moves midday: Novavax, Shake Shack and more

Novavax — The biotech stock soared 29% after the company announced that it was awarded $1.6 billion in funding from the federal government to help develop its Covid-19 vaccine candidate.

Shake Shack — Shares of the restaurant chain fell more than 5% after the company announced its sales numbers for the second quarter, which showed a 49% decline in same-store sales compared with last year. In addition to Covid-19 shutdowns, Shake Shack also said that nationwide protests and the associated curfews took a bite out of second-quarter sales.

MGM ResortsLas Vegas SandsWynn Resorts — Casino stocks fell on Tuesday as an uptick in coronavirus cases dented sentiment.
Read more here. — Maggie Fitzgerald 

Walmart reportedly eyes Amazon Prime competitor launch this month

Walmart is close to launching its own membership program that will directly compete with Amazon Prime, Recode reported on Tuesday. The new subscription service, called “Walmart+,” will cost $98 a year and include same-day delivery of groceries and other perks, Recode said, citing multiple sources. Amazon Prime members pay $119 annually in the U.S. Walmart’s program will be unveiled later in July after its original launch date in March or April was derailed by the coronavirus pandemic, Recode reported. Shares of Walmart jumped 3.5% after the report, while Amazon dipped about 0.7%. — Yun Li

Markets at midday: Nasdaq heads for another record close as tech surge continues

Around midday, the Nasdaq Composite was on pace for another all-time closing high, led by major tech shares such as Apple and Microsoft. The tech-heavy index gained 0.6% while the S&P 500 hovered around the flatline. The Dow, meanwhile, traded 181 points lower, or 0.7%. — Fred Imbert

JPMorgan creates ‘Democrat Agenda’ stock basket to play a Biden victory

JPMorgan Chief U.S. Equity Strategist Dubravko Lakos-Bujas has created a basket of stocks investors can use to bet on Joe Biden’s potential victory over President Donald Trump. The bank’s “Democrat Agenda Outperformers” list includes shares of green energy companies, infrastructure plays and firms that could benefit most if U.S.-China relations relax. CNBC PRO subscribers can read the list of stocks JPMorgan recommends here. — Thomas Franck

Chipotle weathering the coronavirus storm, Bank of America says

Bank of America said on Tuesday that Chipotle is “managing through Covid better than expected.” The firm reiterated its neutral rating on the stock but raised its price target to $1,200 from $800. “The company seems to be operating well in a socially distanced model, which we had thought would be challenging for the brand’s in-store serving line model,” analyst Gregory Francfort said, praising Chipotle’s digital channel mix. Shares are up 1% in early trading. — Michael Bloom

Nasdaq extends lead over Dow one hour into session

Both the Dow and S&P 500 traded lower one hour into Tuesday’s trading session, but the Nasdaq Composite extended its gain to 0.4%. That widened the difference between the Nasdaq and the Dow, which dropped 175 points. Though off its session high, the Nasdaq has led the other two major indexes since the opening bell as big-tech stocks like Microsoft, Apple and Facebook all rose. Tesla, which hit an all-time high earlier in the session, last traded flattish at $1,370 per share. — Thomas Franck

Tesla shares hit new all-time high

Shares of Tesla rose 4% during early trading to hit a new all-time high of $1,429.50. Shares of the electric car maker have marched higher since the company’s second-quarter delivery numbers, which topped Street estimates. On Tuesday, Morgan Stanley’s widely-followed auto analyst, Adam Jonas, raised his target on the stock while re-iterating his underweight rating. Jonas said Tesla equity is poised for more gains in the near-term, but that longer-term headwinds remain. CNBC PRO subscribers can read more here. — Pippa Stevens

Nasdaq rises as Netflix, Microsoft skirt early selling

Of the three major U.S. stock indexes, the Nasdaq Composite was the only one to trade higher within the first 15 minutes of trading. Its rise was in large part thanks to gains in big-tech names like Microsoft, Apple and Netflix, which added 0.3%, 0.4% and 1%, respectively. Facebook gained 1.4% and Tesla added 2%. Tech had come under pressure in the premarket session but began to reverse course within 30 minutes of opening bell. — Thomas Franck

Reopening stocks falter in early trading

Shares of companies closely linked to the reopening of the economy were hit hard in early trading Tuesday. Airline stocks dropped sharply, with American Airlines losing 4.5% and United falling 6.3%. Retailers Gap and Kohl’s both slid more than 3%, while the three major cruise stocks — Norwegian, Carnival and Royal Caribbean — all fell at least 2.5%. — Jesse Pound

Dow drops 200 points at open as reopening names lag

The major U.S. stock indexes fell at the start of trading on Tuesday as fears of accelerating Covid-19 cases dampened Wall Street’s optimism from Monday. The Dow Jones Industrial Average dropped 200 points at the opening bell. The S&P 500 shed 0.5% and the Nasdaq Composite traded flat as so-called reopening trades like airlines and retailers weighed on the broader market. — Thomas Franck

Tech stocks move higher before the bell

Many major tech stocks reversed their premarket falls as the opening bell approached. Shares of Amazon and Apple are now up 0.4% and 0.3%, respectively. Microsoft has cut its losses by more than half and last traded 0.2% lower. Bullish calls on tech stocks were among the biggest calls of the day on Wall Street, including Raymond James raising its target price for Apple and Baird doing the same for Amazon. — Jesse Pound, Michael Bloom

Protests, curfew hurt restaurant sales, Shake Shack says

Shake Shack announced preliminary second-quarter results on Tuesday that showed same-store sales down 49% to $91.8 million compared with the same period last year due to store closures during the pandemic and nationwide protests. The company had previously pulled its full-year guidance due to the pandemic. “Shack sales were estimated to be negatively impacted by approximately $3.2 million in the fiscal period June due to nationwide protest activity and resulting curfews causing temporary Shack closures and reduced operating hours,” the company said in a statement.Shake Shack’s full earnings release is scheduled for July 30. Shake Shack shares traded more than 2% lower in the premarket. —Jesse Pound

Virus deaths not spiking despite outbreaks, Fundstrat’s Lee says

Tom Lee, the head of research at Fundstrat, said in a note to clients Tuesday that deaths from Covid-19 have not seen an increase despite recent outbreaks in places like Arizona, Florida and Texas that have led to more economic restrictions. Deaths can lag reported infections by many weeks, but the low death rates in recent outbreaks has led some to argue that the virus is not as deadly as originally feared.”And perhaps more importantly, daily deaths from COVID-19 remain in a downtrend.  Recall, US cases have been surging for several weeks now and yet, we have not seen a similar surge in hospitalizations (nationwide) nor in deaths,” Lee said.Lee also said that he believed the pandemic had peaked peaked in Houston, one of the major hot spots in the United States. — Jesse Pound

Citi hikes its year-end target to 2,900, citing ‘incessant Fed support’

Citigroup hiked its 2020 S&P 500 target to 2,900 from 2,700, thanks to the “incessant” support of the Federal Reserve that’s caused the market to blow past its previous forecast. Citi’s new forecast still calls for about a 10% decline from here. “While our fundamental assessment still implies downside from current levels, it is more probable that the trading range for the market should be 2,700-3,200 given powerful fiscal and monetary stimuli (with more likely from government next month),” Tobias Levkovich, Citi chief U.S. equity strategist, told clients in a note. In an effort to shore up the economy, the Federal Reserve has slashed interest rates to near zero and announced an unprecedented unlimited asset purchase program. — Maggie Fitzgerald

Fed’s Bostic says virus rise could slow U.S. recovery

The U.S. economic recovery is likely to be “bumpier” now that coronavirus cases are rising in parts of the country, according to Atlanta Fed President Raphael Bostic, whose district covers some of the hardest-hit areas. Speaking to the Financial Times, the central bank official said he is concerned amid spikes in Florida, Georgia and some Western states. “There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise,” Bostic told the paper. “And so we’re watching this very closely, trying to understand exactly what’s happening.” High-frequency data tracked by Jefferies shows a slight slowing from last week to 57% of the “normal” level as measured by 2019 activity. While flight activity is higher, consumer traffic and employment metrics edged lower. However, Jefferies noted that activity “has clearly flat-lined” after two months of improvement and has shown “particular weakness in virus-hit states.” —Jeff Cox

Large-cap managers have best first half since 2017, says Bank of America

Thanks to the swift rebound from the coronvirus market rout, 42% of large-cap mangers finished the second quarter ahead of their benchmarks, according to Bank of America. This marks the best first half of the year since 2017, when large-cap managers subsequently ended the year with a record hit rate of 48%. This suggests large-cap active managers fared well against the backdrop of unprecedented market volatility, the bank said. “Fund performance was likely helped by both sector positioning and stock selection — mutual funds have had a near-record underweight in both Energy and Financials, the worst-performing sectors YTD, while the stocks most crowded by longonlies have significantly outperformed neglected stocks (a reversal from recent years),” Bank of America equity and quant strategist Savita Subramanian told clients. — Maggie Fitzgerald

Reopening stocks falter as Covid-19 cases balloon

Stocks of companies that would benefit most under a reopening of the U.S. economy came under pressure before the bell Tuesday morning. Mall owner Simon Property Group dropped 1%, United Airlines lost 2.1% and cruise-line operator Carnival shed 2% as the number of new infections, hospitalizations and shutdown orders continued to rise in the U.S. Apparel retailers Gap and Kohl’s dropped 1.3% and 1.1%, respectively. U.S. coronavirus cases now exceed 2.93 million and U.S. deaths now exceed 130,000, according to Johns Hopkins University. — Thomas Franck

Novavax surges after receiving federal funding for vaccine

Biotech stock Novavax jumped 34% in premarket trading after the company announced that it had received $1.6 billion in funding from the federal government. The funding, from Operation Warp Speed, is to help Novavax develop and manufacture a Covid-19 vaccine. The company said its vaccine candidate could be developed “as early as late 2020.” —Jesse Pound

Palantir confidentially files to go public

Palantir, the data analytics software company co-founded by Peter Thiel in 2004, has filed confidentially for a public stock offering. The company has raised roughly $2.6 billion in venture capital, and the valuation has reached $20 billion. “The public listing is expected to take place after the SEC completes its review process, subject to market and other conditions,” the company said in a statement. The notice of a confidential filing does not mean that a public listing is necessarily imminent. – Pippa Stevens, Jordan Novet

Wall Street set to fall after Monday’s big rally

U.S. stock futures were under pressure on Tuesday as tech shares — which led a massive rally in the previous session — fell along with airline and cruise operator stocks. Dow Jones Industrial Average futures dropped 242 points, or 0.9%. S&P 500 and Nasdaq-100 futures slid 0.8% and 0.4%, respectively. On Monday, the Dow surged more than 400 points while the S&P 500 popped 1.6%. The Nasdaq closed at a record high a day earlier, surging 2.2%. – Fred Imbert


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