Stock market live Tuesday: Stocks rebound on stimulus hopes, Dow up 1,000, oil drops 6%

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Dow closed up 5.19% for its 2^nd positive day in three after hitting a low of 19,882.26, its lowest level since Feb 2, 2017

• This month: Dow is down -16.42% on pace for its worst month since Oct 1987 when the Dow lost -23.22%
• This year: Dow is down -25.58% YTD on pace for its worst year since 2008 when the Dow lost -33.84%
• From Record: Dow is 28.18% below its intraday all-time high of 29,568.57 from Feb 12^th

S&P closed up 6% for its 2^nd positive day in three

• This month: S&P is down -14.39% on pace for its worst month since Oct 2008 when the S&P lost -16.94%
• This year: S&P is down -21.72% YTD on pace for its worst year since 2008 when the S&P lost -38.49
• From Record: S&P is 25.47% below its intraday all-time high of 3,393.52 from Feb 19^th

Nasdaq closed up 6.23% for its 2^nd positive day in three

• This month: Nasdaq is down -14.39% for its worst month since Oct 2008 when the NAS lost -17.73%
• This year: Nasdaq is down -18.25% YTD on pace for its worst year since 2008 when the NASDAQ lost -40.54%
• From Record: NASDAQ is 25.45% from its intraday all-time high of 9,838.37 from Feb 19^th

Russell 2,000 small caps closed up 6.67% for their 2^nd positive day in 3

• This month: Small caps are down -25.04%, on pace for its worst month since Oct 1987 when small caps lost -30.77%
• This year: Small caps are down -34.8%, on pace for their worst year since 2008 when small caps lost -34.8%
• From Record: Small caps are 35.47% below their 52-wk high of 1,715.08

Sectors: 11 out of 11 sectors were positive Tuesday led by Utilities up 13.11% for their best day since Oct 13, 2008 when the sector gained 13.53% — Francolla, Fitzgerald

Only three stocks in the Dow Jones Industrial Average closed the day in the red. Boeing, which lost more than 4%, Disney, which fell 1.5% about McDonald’s, which fell nearly 1%, all missed out on the 1,000 points rally. —Fitzgerald

Tuesday’s rally pushed many battered down stocks up from their lows. The biggest winners in the Dow Jones Industrial Average were Dow Inc, which gained more than 20%, Travelers, which rose more than 13%, and chipmaker Intel, with jumped more than 12%. Walmart surged 11.7% and Walgreens Boots Alliance rallied more than 10%. — Fitzgerald

International shipping company FedEx announced Tuesday in its third-quarter profit report that it’s suspending its 2020 guidance thanks to the uncertainty the novel coronavirus has generated for its business. It also reported third-quarter profits of $1.41, in line with analyst estimates. FedEx Chief Financial Officer Alan Graf said in a statement that the company is “attacking costs throughout the company by managing capacity, retiring our oldest and least-efficient aircraft, integrating TNT Express, and lowering our residential delivery costs.” — Franck

The Dow Jones Industrial Average has only finished in positive territory five times in March, Tuesday being one of those trading days. All of the five sessions resulted in the 30-stock average gaining more than 1,000 points. — Francolla, Fitzgerald

Stocks solidified their rebound from Monday’s dismal rout, climbing Tuesday on hopes of $1 trillion government stimulus to combat the economic downfall of the coronavirus. The Dow Jones Industrial Average closed the day up more than 1,000 points, or 5.2%. The S&P 500 rose nearly 6% and the Nasdaq Composite jumped about 6.2%. — Fitzgerald

Truist CEO Kelly King said on “Closing Bell” that his bank has not tapped the Federal Reserve’s discount window like some of its peers, but he said he did not see it as a sign of weakness that other banks did so. “I think this was simply a measure on the part of the Fed to make sure the system was working in case it were to become necessary. I’m fairly positive in saying that none of those other institutions had any need for that. But it was reasonable probably to ask them, the very largest institutions, to access the system just to make sure all the mechanics were working all right,” King said. — Pound

The benchmark 10-year Treasury yield popped above 1% after CNBC reported the White House is weighing a fiscal stimulus package of more than $1 trillion to offset the negative economic impact from the coronavirus outbreak. The yield on the benchmark 10-year Treasury note jumped nearly 30 basis points to 1.038%, its highest level since March 5. The yield on the 30-year Treasury bond also climbed a similar amount to 1.62%. Bond yields move inversely with prices. —Li

Deutsche Bank Americas CEO Christiana Riley said on “Closing Bell” that the newly announced restrictions on travel within the EU means that it will be tougher for the European economy to recover after the coronavirus crisis. “It’s a deeply symbolic step … what we’re seeing here now is quite literally the pulling up of the draw bridges across the continents and now even within the continent of Europe,” Riley said. “That’s no doubt going to have some severe macroeconomic consequences for us. If perhaps last week we were talking about a V-shaped recovery, we are no doubt talking about a U-shaped recovery now.” — Pound

Oil’s steep decline continued on Tuesday when prices dropped further. U.S. West Texas Intermediate crude shed 6.1% to settle at $26.95, its lowest level since Feb. 2016. International benchmark Brent crude dropped more than 4% to settle at $28.73 per barrel. Recession fears are weighing on prices, as traders worry that the coronavirus outbreak and subsequent slowdown in business will continue to hit crude demand. – Stevens

With roughly one hour left in the trading session, the major averages were headed for sharp gains amid rising expectations of a fiscal stimulus package. The Dow was up more than 3% while the S&P 500 and Nasdaq both traded 4% higher. Tuesday’s gains are helping Wall Street recover some of the steep losses suffered in the previous session, which was the market’s worst in more than 30 years. —Imbert

Billionaire Mark Cuban said in a tweet on Tuesday that public companies that need assistance from the federal government due to the coronavirus should be banned from buying back their own stock in the future. This follows Cuban’s call earlier in the day to limit incentive payments to executives of those companies. — Pound

The Dow Jones Industrial Average rose 1,000 points on Tuesday in afternoon trading, following a Dow Jones report that the Trump administration’s coronavirus stimulus package could be $1 trillion. Earlier, Treasury Secretary Steven Mnuchin told reporters the government is considering directly sending checks to Americans in the next two weeks. — Fitzgerald

The S&P 500 Utilites sector is up more than 10% on Tuesday, on pace for their best day since Oct. 2008. The sector is led higher by Edison International, Xcel Energy and ConED, which are all up about 14%. —Francolla, Fitzgerald

Treasury Secretary Steven Mnuchin said financial markets will stay open but it’s possible to cut trading hours. “We may get to a point where we shorten the hours if that’s something we need to do,” Mnuchin said during a press conference Tuesday. Stocks have been in a turmoil where trading was halted briefly multiple times to prevent the market from falling through the floor. Market volatility, measured by the VIX, also surged to the highest level ever amid weeks of wild trading. – Li

Stocks jumped in midday trading as President Trump and Treasury Secretary Steven Mnuchin announced additional measures to fight the coronavirus. The Dow rose 1,125 points for a gain of 5.5%. The S&P 500 jumped 6.7%, while the Nasdaq Composite was up 6.9%. – Stevens

The dollar index strengthened 1.7% on Tuesday, on pace for its best day since June 2016, when the index gained 2.49%. The index hit a high so far today of 99.762, its highest level since Feb 21. Investors are rushing into the dollar seeking out the most liquid currency as concerns about economic shutdowns from the coronavirus continued to dent risk appetite. —Francolla, Fitzgerald

Treasury Secretary Steven Mnuchin said Tuesday that the Trump administration wants to get emergency funds in Americans’ pockets “immediately” amid the coronavirus crisis. “Americans need cash now,” Mnuchin said during a White House press briefing on the administration’s latest efforts to combat the disease. “I mean now in the next two weeks.”-Breuninger

Goldman Sachs slashed its oil forecast on Tuesday as the COVID-19 outbreak continues to pressure demand. “Demand losses across the complex are now unprecedented,” Goldman’s global head of commodities research Jeffrey Currie wrote in a note to clients Tuesday. The firm said that oil use has fallen by eight million barrels per day as the coronavirus has led to a near standstill in travel, among other things. Goldman now sees U.S. West Texas Intermediate crude averaging $22 per barrel in the second quarter with international benchmark Brent crude at $20 per barrel. This is Goldman’s second cut to price forecasts in less than two weeks. WIT crude trade below $30 a barrel on Tuesday. – Stevens

Around midday, the major averages traded at their session highs following actions announced by the Federal Reserve to help businesses struggling with short-term funding amid the coronavirus outbreak. The Dow was up more than 650 points, or 3.3%. The S&P 500 and Nasdaq both traded higher by at least 5%. —Imbert

Goldman Sachs chief economist Jan Hatzius has lowered his 2020 forecast for global GDP to 1.25% based in large part on a clearer picture of the economic damage to China cause by the coronavirus pandemic. “This is going to mean the global GDP numbers clearly in recession territory. A lot of people use something like 2.5% (growth) for global GDP as a recession criterion, and we’re going to be well below that,” Hatzius said on “Squawk on the Street.” Hatzius has U.S. growth projected at 0% for the first quarter and -5% for the second quarter, but he said those numbers may be worse. “I think even in the last few days we’ve seen quite a bit more aggressive moves towards lockdowns in the U.S.in many states and cities, so I think the risk to these numbers is still on the downside,” Hatzius said. — Pound

Following the Federal Reserve’s announcement that it will move to help small businesses get short-term funding, stocks got a brief boost. The Dow rose more than 150 points in volatile trading. The Nasdaq and S&P 500 are both up about 2%. – Fitzgerald

The Federal Reserve said Tuesday it is providing help to companies that are having a hard time getting the short-term funding they need to operate. The bank announced a special credit facility to purchase corporate paper from issuers that have been having a difficult time finding buyers on the open market. Corporate paper involves unsecured short-term lending. The one-day facility will involve three-month paper for eligible companies. The cost will be the three-month overnight index swap rate plus 200 points. – Cox

While the broader market struggled to rebound from Monday’s deep losses, a handful of biotech companies were posting double-digit returns. Germany-based BioNTech surged almost 61% Tuesday after it said it’s teaming up with Pfizer to develop a coronavirus vaccine. Moderna jumped over 12%, while Regeneron climbed more than 10% after the company said it aims to start human clinical trials of a coronavirus drug by early summer. – Li, Francolla

• Oppenheimer upgraded Walmart to outperform from perform
• Deutsche Bank upgraded Procter & Gamble to buy from hold.
• Needham initiated Zoom as buy.
• Evercore ISI upgraded Pepsi to outperform from in line.
• Bernstein upgraded JD.com to outperform from market perform.
• MKM upgraded Boston Beer to buy from neutral.
• MKM upgraded Electronic Arts to buy from neutral.
• Cowen upgraded Square to outperform from market perform.
• Bank of America downgraded Royal Caribbean to underperform from neutral.
• Wedbush added Facebook, Amazon and Peloton to the best ideas list.

Read the full analyst calls of the day here. –Bloom

American industrials crown jewel Boeing fell another 20% on Tuesday, adding to an eye-popping slide for the aircraft manufacturer over the last several months. The sell-off comes a day after Boeing said it is in talks with the Trump administration about potential aid and others in its supply chain as the novel coronavirus whacks the travel industry. The company was already dealing with the consequences of two fatal crashes of its 737 Max aircraft, which has been grounded around the world since 2019. The price of Boeing equity is down 72% over the last six months. — Franck

The Federal Reserve is continuing to provide support for short-term bank funding, as it will institute another $500 billion repo operation Tuesday afternoon. In the latest operation, the Fed will conduct another operation that comes on top of a similar offering Monday. The central bank’s New York trading desk has been aiming to quell disruptions in the overnight funding markets where banks to go get operating capital. —Cox

Shares of Amazon rose 3.8% in morning trading on Tuesday. The e-commerce giant said it plans to hire an additional 100,000 warehouse and delivery workers amid a surge in online orders due to the coronavirus outbreak. The company is also raising pay for warehouse and delivery workers by $2 per hour in the U.S through the end of April. On Saturday, Amazon said some brands in the “household staples” category were out of stock and warned that some of its “delivery promises are longer than usual.” – Palmer, Li

A monthly measure of homebuilder sentiment only partially reflected the escalating economic effects of the coronavirus. Sentiment fell 2 points to 72 in March, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Sentiment levels have stayed in a tight range in the low- to mid-70s for the past six months. Anything above 50 is considered positive. —Olick

Tesla shares dropped below the infamous $420 level in early trading Tuesday, just three months after surging past that mark for the first time. The price has become infamous for Tesla’s stock, as CEO Elon Musk tweeted in August 2018 that he had “funding secured” to take the company private at that level. Musk later agreed to a settlement with the SEC over the statement after the regulator sought to bank Musk from holding leadership positions at any publicly traded company. – Sheetz

Treasury Secretary Steven Mnuchin heads to the Capitol today to discuss a third coronavirus response package with Senate Republicans as policymakers try to stave off economic calamity. The Trump administration wants an $850 billion economic stimulus plan, Politico and The Washington Post reported. The White House’s proposal would include about $50 billion in aid to an airline industry battered by the global pandemic, according to the Post. Congress already passed $8.3 billion in emergency funding to help stop the coronavirus disease’s spread. A separate plan to expand paid leave benefits, boost unemployment insurance and make testing more affordable is working its way through the Capitol this week. —Pramuk

Stocks gave up all their gains within 30 minutes of the opening bell. The Dow Jones Industrial Average fell below 20,000 for the first time since Feb 2017. The 30-stock average is down about 200 points. The S&P 500 and Nasdaq also turned negative. – Fitzgerald

Wall Street’s fear gauge the Cboe Volatility Index, known as the VIX, hit another all-time high of 83.94 Tuesday morning amid wild trading. On Monday during the massive sell-off, the VIX popped nearly 25 points, or almost 43%, to close at a record high of 82.69, surpassing the peak level of 80.74 during the financial crisis. The VIX, which tracks the 30-day implied volatility of the S&P 500, more than doubled in March alone. The index looks at prices of options on the S&P 500 to track the level of fear on Wall Street. — Li

Shares of biotechnology company Regeneron hit a new 52-week high of $503.20 per share on Tuesday after the company said it aims to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. Shares of Regeneron last traded up about 9%. —Fitzgerald

McDonald’s is asking its U.S. franchisees to close their dining rooms as the company responds to the coronavirus outbreak. The fast-food giant also plans to close the dining rooms in its company-owned locations in the U.S. Customers will be able to order their food and drinks for takeout or delivery or via the drive-thru. McDonald’s owns about 5% of its roughly 14,000 U.S. restaurants. Shares of McDonald’s fell nearly 6% in morning trading. —Li

Stocks quickly lost their gains on Tuesday, with the Dow briefly dipping into negative territory. The average fell 100 points less than 15 minutes after the opening bell but last traded up more than 100 points. The S&P 500 and the Nasdaq stayed in the green but also pared gains. – Fitzgerald

Stocks attempted a rebound from the worst day since 1987, with all three major averages opening in positive territory on Tuesday. The Dow Jones Industrial Average rose 410 points, or 2%. The S&P 500 rose 2.2% and the Nasdaq jumped 2.2%. – Fitzgerald

U.S. retail sales fell 0.5% in February, missing analyst expectations of a 0.2% rise, according to estimates from Reuters. Data for January was, however, revised to the upside. For the month sales rose 0.6%. Prior reports had shown a 0.3% acceleration. – Stevens

Piper Sandler has identified a basket of “social distancing” stocks that it believes are set to outperform as people stay inside and work from home in a bid to halt the spread of COVID-19.”We are all in uncharted territory as this rolling global health crisis is uprooting how we all go about our days, our work flow & our social interactions,” the firm said in a recent note to clients.The firm said to favor companies that offer at-home dining, entertainment and work capabilities, as well as retailers with a strong e-commerce footprint. The list includes names like Kellogg and Zoom Video. CNBC Pro subscribers can read more here. – Stevens

The firm’s chief economist Chetan Ahya told investors that a “global recession in 2020 is now our base case.” Morgan Stanley said the coronavirus pandemic is fundamentally disrupting the world’s economy, forecasting the lowest global economic growth “since the global financial crisis.” – Sheetz

Treasury yields climbed a tad Tuesday morning as investors sought more details on fiscal stimulus from the Trump administration to battle the coronavirus fallout. The yield on the benchmark 10-year Treasury note rose just five basis points to 0.77% after slumping 23 basis points in the previous session. The yield on the 30-year Treasury bond was up slightly at 1.36%. Bond yields move inversely with prices. “There will come a stage in the process when the lows are ultimately established and efforts are made to return the market to some semblance of normality,” said Ian Lyngen, BMO’s head of U.S. rates. “It’s unclear if investors have entered this phase yet as the monetary policy reverberations continue to find their way through the system.” — Li

The so-called “MAGA” stocks — or Microsoft, Apple, Amazon and Google-parent Alphabet — have erased $1.3 trillion in value since their February all-time closing highs amid the broader market sell-off. Microsoft has been the hardest hit, losing roughly $405.2 billion. Apple has erased around $371.8 billion, while Alphabet has lost $311.1 billion. Amazon has shed $239.4 billion. With the recent losses, only Apple and Microsoft are now valued at more than $1 trillion. – Stevens

Nordstrom said it will close 364 of its stores in an effort to curb the spread of the coronavirus. Due to the ongoing uncertainty surrounding the long-term impact of the virus, the retailer also suspended its 2020 earnings outlook. Nordstrom said it has experienced “a broad-based deceleration in customer demand over the past couple of weeks, particularly in markets most affected by the virus.” The stock has lost more than half its value this year, after shedding 58%. Shares were flat during Tuesday’s premarket trading. – Stevens, Thomas

Stock futures have been on a wild ride heading into Tuesday’s open on Wall Street, casting doubt on the reliability of pre-market trading as an indicator of where things stand. Futures overnight were “limit up” at one point a situation where trading is halted because they have hit a 5% gain and can go no higher. However, shortly before 6:30 am markets turned around and were negative at one point. They then shot higher again shortly after and most recently pointed to a big gain. Observing the massive swings, CNBC’s Jim Cramer said futures were losing their reliability and are “a total joke.” “Don’t even look at them. You can’t have a bull market at 3:30 a.m. and have it end by 7 a.m.,” the “Mad Money” host said. —Cox

Pharmaceutical company Regeneron said on Tuesday it is speeding up its timeline for its coronavirus drug, with potential to run trials by the early summer. The antibody-based therapy has the potential to be preventative from the virus as well as treat active cases. Share of the biotechnology company rose more than 13% in premarket trading on Tuesday. — Fitzgerald

Stock futures pointed to a bounce on Tuesday following the Dow Jones Industrial average’s third-worst day in history. The Dow Jones Industrial Average futures indicated an implied open of more than 600 points. The S&P 500 and the Nasdaq were also slated to rise.

The rebound comes after the Dow and S&P 500 experienced their worst day since the “Black Monday” crash of 1987 despite the Federal Reserve’s rate cut and easing actions. The Dow lost nearly 13%, its third worst one-day percentage drop in history. The S&P 500 lost 12%. The Nasdaq Composite had its biggest one-day plunge ever, tumbling 12.3%. — Fitzgerald

— with reporting from CNBC’s Jeff Cox, Michael Sheetz, Thomas Franck and Jesse Pound.

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