Stock market live Monday: Stocks rise to start June, just like 1968?, Zoom tops $200

After falling at the open, stocks reversed course and moved higher on Monday as states reopening their economies outweighed growing U.S.-China tensions. Stocks most sensitive to the re-opening trade, including retailers, airlines and cruise line operators, led the major averages higher. Here’s what happened:

• The Dow gained 92 points, or 0.36%, breaking a two-day losing streak.
• Boeing (BA) had the most positive impact on the Dow, adding 40 points to the index.
• The S&P 500 gained 11 points, or 0.38%, its fifth positive session in six.
• Apple (AAPL) had the most positive impact on the SPY, adding 0.22 points to the ETF.
• The Nasdaq Composite gained 62 points, or 0.66%, its fifth positive session in six.
• Apple (AAPL) had the most positive impact on the Nasdaq 100, adding 14.9 points to the index.
• The Russell 2000 gained 0.81%, breaking a two-day losing streak.
• DJ Transports fell 0.04%, its third negative session in a row
• 10 of 11 S&P 500 sectors were positive in Monday’s session, led by real estate, which was up 2.10%. Health care was the lone negative sector, down 1.01%. — Hayes

Investors continued to focus on the progress of economic reopenings following back-to-back monthly gains for the market. The Dow climbed about 90 points on the first day of June, while the S&P 500 rose 0.3%. The Nasdaq gained 0.6%. Pfizer finished the session down 7.1% after reporting disappointing trial results for a breast cancer drug. — Li

The coronavirus will likely cost the economy about $7.9 trillion through fiscal 2030 even with all of the relief funding being poured in to offset the pandemic’s impact, according to an estimate from the Congressional Budget Office on Monday. “Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce U.S. investment in the energy sector,” CBO Director Phillip L. Swagel said in a written response to an inquiry from Sen. Chuck Schumer (D-New York). –Cox, Li

The major averages were headed for solid gains on Monday, the first day of June, as Wall Street tries to build on its back-to-back monthly advances. The Dow traded about 100 points higher, or 0.4%. The S&P 500 advanced 0.5% while the Nasdaq rose 0.7%. Those gains come even amid rising U.S.-China tensions and widespread protests across the U.S. —Imbert

A number of stocks rose to new all-time highs as the broader market advanced on Monday, including:

• Charter Communications (CHTR) trading at all-time highs back to its relisting on the NASDAQ in 2010
• Domino’s Pizza (DPZ) trading at all-time highs back to its IPO in July, 2004
• Tractor Supply (TSCO) trading at all-time highs back to its IPO in 1994 after being taken private by an LBO in 1982
• Monster Beverage (MNST) trading at all-time highs back to its listing on the NASDAQ in 1992
• Paypal (PYPL) trading at all-time highs after its spin-off from EBAY in July 2015
• American Tower (AMT) trading at all-time highs back to its IPO in 1998
• Crown Castle International (CCI) trading at all-time highs back to its IPO in Aug., 1998. – Hayes, Stevens

The stock market’s rise amid social chaos and the global pandemic is not unlike what happened in 1968, another year of great unrest and appreciable stock market gains. In 1968, the nation was in the throes of the Hong Kong Flu, the Rev. Martin Luther King Jr. and Robert F. Kennedy were assassinated and the Vietnam War had intensified. Yet the S&P 500 rose 7.6%. “History shows markets look through many sorts of tumultuous events and have done so for decades,” said Nicholas Colas, co-founder of DataTrek Research. The S&P 500 was up about 0.5% around 1 p.m. ET Monday and has surged 36% since the March lows, despite the coronavirus pandemic, an unprecedented economic slump and, most recently, protests and riots around the nation. –Cox

• Airlines and cruises — Delta, United, American and Southwest all rose as traders mounted bets on the economy reopening. Cruise line operators Carnival, Norwegian Cruise Line and Royal Caribbean also got a boost.
• Pfizer — The pharmaceutical giant dropped on the back of disappointing breast-cancer drug trial results.
• Coty — Coty shares rallied after the company announced it will sell a majority stake in its hair product lines to private equity firm KKR.

Click here to read more. —Imbert

Shares of Zoom Video rallied more than 13% to break above $200 per share for the first time. Those gains put the video-conferencing company up about 200% year to date as consumers turn to the platform amid the coronavirus pandemic. Zoom’s surge to record highs comes a day ahead of the company’s first-quarter earnings results. —Imbert

Wall Street kicked off the new month with slight gains, as the Dow and S&P 500 both traded 0.2% higher. The Nasdaq Composite advanced 0.4%. The major averages were led higher by stocks benefiting from the reopening of the economy. However, sentiment was kept in check by lingering U.S.-China trade tensions as well as protests across the U.S. — Imbert

Shares of the largest U.S. banks jumped on Monday as investors hoped the economy reopening would recover consumer spending habits and lessen the possibility of loan defaults. The SPDR S&P Bank ETF (KBE) was up nearly 2.3%, and on pace for its first positive day in three. Shares of Wells Fargo and US Bancorp both rose about 3.5%. Bank of America and Citigroup each jumped more than 2%, while JPMorgan rose 1.9%. – Francolla, Fitzgerald

The S&P 500 rallied more than 17% from March 31 to May 31, marking only the fifth two-month rally of at least 15% since 1938 for the index, Instinet’s Frank Cappelleri highlighted in a note Monday. If history is any indication, that move could signal late March was the bottom of the coronavirus bear market, “with 3/4 prior instances happening after severe bear markets,” Cappelleri said. “More studies are popping up that favorably compare the recent price action to other major market bottoms.” – Imbert

About three stocks traded higher for every decliner at the New York Stock Exchange as Wall Street tried to build on its back-to-back monthly gains. Overall, 2,037 NYSE-listed stocks traded higher while 735 names declined, according to FactSet. — Imbert

Stock could be impacted by the protests in dozens of American cities if they help start a new wave of the virus or negatively impact economic reopenings, according to RBC’s chief U.S. equity strategist. RBC’s Lori Calvasina said there are several ways the protests could be negatives for stocks. One is if confidence were to take a hit, since it is closely tied to stock market performance. She said consumer confidence had started to stabilize in the Northeast and West, the regions hit hardest by the virus.

The protests could also impact corporate sentiment, and small business confidence, which is a driver of small cap performance. If mass gatherings result in a new wave of the virus, that could hurt reopenings or keep people acting more cautiously, she noted. Calvasina said the market rallied in late March and April on optimism for the reopenings and stimulus. It then paused in early May, when there was concern about reopenings coming too soon. The market then got a lift from good news on vaccines. She said the market is focused on China and the trade war. “As June gets underway, the news flow appears to be deteriorating on two fronts,” she wrote. – Domm

Jim Cramer said on “Squawk on the Street” that this week’s market moves would be determined primarily by how the reopening of non-essential businesses is going. But the protests against police violence could slow that process, Cramer said. “I think it’s about the reopening and to see how that goes,” Cramer said. “Whether the protests make the reopening delayed would be terrible, but I understand the protesters and I’m sympathetic with anyone who’s a peaceful, safe protester.” — Pound

Citi Chief U.S. Equity Strategist Tobias Levkovich warned that the U.S. stock market looks a bit too rosy given a host of lingering risks and the rally off the March lows. “We worry that equity markets are discounting lots of good news at this juncture, and sentiment gets more upbeat by the day when risks are lurking and valuations are becoming tenuous,” Levkovich wrote in a note published Friday.

“The upside opportunity in the S&P 500 was evident at 2,200, when fear was detectable almost everywhere. Now, not only has the economy reopened, but so have investment community animal spirits, which we think need to be tamed,” he added. — Franck

Shares of retailers, airlines and hotels jumped again on Monday amid optimism about a successful economic reopening, providing the broader market with some support. American Airlines and United Airlines jumped nearly 6% each, while Delta rose more than 4%. Apparel retailer Gap soared 12% in morning trading, and Marriott International climbed more than 5%. Cruise line operators were also among the biggest gainers, with Norwegian Cruise and Carnival rallying 7% and 5%, respectively. These companies, which took a huge beating from the pandemic-induced shutdowns, will benefit directly from the reopening of the economy. -Li

Morgan Stanley lifted its price target on Amazon to $2,800 from $2,600, and said that 2020 will be an “inflection” point for the company as consumers continue to favor online shopping. “While the world is now re-opening, we expect these buckets of available dollars to remain e-commerce tailwinds…we expect adjusted retail and travel spend to decline an aggregate of 18% in 2H:20…and for 3,000+ retail stores to close this year,” the firm said. Shares of Amazon rose about 1% in early trading. – Bloom

Stocks opened lower on the first trading day of June, as growing U.S.-China tensions weighed on the market. The Dow shed 94 points for a loss of 0.4%, while the S&P 500 and Nasdaq Composite slid 0.36% and 0.25%, respectively. Still, the modest move lower does little to dent a period of strength for stocks, which has seen the S&P 500 rally 39% from its March 23 low. – Stevens

• Morgan Stanley raised its price target on Amazon to $2,800 from $2,600.
• Piper Sandler upgraded Ulta to overweight from neutral.
• Goldman Sachs downgraded Abbott Labs to sell from neutral.
• Evercore ISI upgraded Keurig Dr Pepper to outperform from in line.
• SunTrust upgraded Teva to buy from hold.
• SunTrust upgraded Hostess Brands to buy from hold.
• JPMorgan upgraded Gap to neutral from underweight.
• Deutsche Bank downgraded Vail Resorts to hold from buy.
• Bank of America reinstated MetLife and Travelers as buy.
• Wedbush raised its price target on Chipotle to $1,200 from $870.

CNBC PRO subscribers can read more here. – Bloom

Credit Suisse Chief U.S. Equity Strategist Jonathan Golub wrote Monday that the market’s path forward depends on the spread of Covid-19 and the success of efforts to reopen the American economy. “COVID-19 deaths continue to increase by 1300+ daily; however, this number has been steadily declining. Market upside ultimately depends on the path of the virus and the success of reopening,” he wrote. Golub noted that retail gasoline demand is an “excellent” gauge of the reopening process and that appetite for fuel has steadily increased for six weeks. — Franck

Americans took to the streets over the weekend in widespread protests following the killing of George Floyd, an unarmed black man, at the hands of Minneapolis police. Art Hogan of National Securities said nothing over the weekend was “market positive.” “At the levels we’re at, I wouldn’t be surprised to see the market take a pause and pull back,” Hogan noted. “We can say we’re slowly reopening and there’s going to be economic activity but it’s hard to defend valuations with so much unrest that we’re seeing going on in this country this weekend.”

Others, however, including Bleakly Advisory’s Peter Bookvar and Bannockburn’s Marc Chandler, believe the protests won’t materially impact markets. Chandler said that the market will only respond to the civil unrest if the protests slow economic re-opennings or trigger a bigger virus outbreak. All three strategists said U.S.-China tensions are a bigger threat to the market. – Domm, Fitzgerald

Shares of Axon Enterprises, formerly known as Taser International, jumped more than 9% in premarket trading after protests against police violence spread across the country. The company sells electrical weapons and cameras for law enforcement officers. Oppenheimer analysts said in a note that Axon CEO Rick Smith “has a company vision and personal passion to arm police agencies with technology and disarm them of lethal weapons.” — Pound

Yum China said Monday that beginning June 3 it will offer Beyond Meat’s plant-based burgers for a limited time at some of its KFC, Pizza Hut and Taco Bell restaurants across mainland China, in a first for the company. “We see great potential for the plant-based meat market in China,” said Joey Wat, CEO of Yum China in a press release. “This latest introduction across KFC, Pizza Hut and Taco Bell brands is expected to capture valuable consumer feedback across different regions in China.” Shares of Beyond Meat rose more than 2% during premarket trading following the announcement. For the year, shares are up nearly 70%. – Stevens

Shares of Gap jumped more than 3% in premarket trading after JPMorgan upgraded the stock to a neutral rating. The firm said that amid weakness at the flagship stores as well as at Banana Republic, Old Navy should benefit from the “disproportionate growth of ‘value retail.'” JPMorgan also said that there’s market share up for grabs following JCPenney’s bankruptcy filing. Growing interest in the athletic apparel sector should also boost sales at the retailer’s Athleta brand, according to JPMorgan. The firm’s $11 target represents a 23% upside to where the stock currently trades. Shares have slid nearly 50% this year as the pandemic caused widespread store closures. – Stevens

The stock market enters June on the heels of a stunning trend higher even as it faces multiple challenges ahead. Despite a global pandemic, steep economic and earnings downturn and political and civil unrest, the S&P 500 has rallied 36.1% off its March 23 low to trade at a gaudy 27.7 times expectations for 2020 earnings, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Silverblatt figures the market is pricing in an aggressive economic recovery following a nearly three-month period where much of the U.S. remained in lockdown mode to battle the coronavirus. Should that scenario not materialize, there could be a price to pay. “If we see the upward turn in the second half, then the current levels may be justified, but if not, the Street will need to reprice, and for those of you who quickly forget, the last repricing was from the Feb. 19, 2020, high to the March 23, 2020, low, a 33.9% fall,” Silverblatt noted. Year to date, the large-cap index is down just 5.8% despite the steep fall in the early days of the coronavirus crisis. The damage was mitigated by a 12.7% surge in April that gave the market its best month since January 1987. – Cox

The manufacturing purchasing manager’s index for China from Caixin and IHS Markit came in at 50.7 for May, beating economists’ expectations and showing expansion in the sector. The index is calculated such that readings above 50 represent expansion, and readings below 50 represent contraction. Economists polled by Reuters predicted the reading for May to be 49.6.The reading was an increase from 49.4 in April. The number fell as low as 40.3 in February, when China was still using widespread economic restrictions to slow the spread of the coronavirus. — Pound

Stocks sensitive to economies reopening, such as cruise line operators, hotels, and airlines, moved higher during Monday’s premarket trading as business begins to get back to normal around the globe. Delta, United, Hilton, Norwegian Cruise and Royal Caribbean Cruises were among the names on the move after posting gains last week. Royal Caribbean was the relative outperformer after jumping 20% last week, although shares are still down more than 60% for the year. – Stevens

The Chinese government has told state-run agricultural companies to pause purchases of some American farm commodities including soybeans, Bloomberg News reported Monday. State-owned traders Cofco and Sinograin were ordered to suspend purchases, one person told Bloomberg, while buyers have also canceled an unspecified quantity of U.S. pork orders. The directive comes as tensions between Washington and Beijing worsen, threatening the longevity of the phase-one deal the two nations inked in January. — Franck

Shares of Pfizer slipped more than 5% during premarket trading after the company reported disappointing results from its breast cancer drug trial. “The trial is unlikely to show a statistically significant improvement in the primary endpoint of invasive disease-free survival,” a release from the company said. “We are disappointed in this outcome,” said Chris Boshoff, Pfizer global product development’s chief development officer in the oncology division. Shares of the pharma giant are down roughly 2% this year. – Stevens

Stocks were set to kick off the month little changed, with futures pointing to modest gains at the open for the S&P 500 and Dow Jones Industrial Average, while the Nasdaq Composite was slated to open slightly lower. All major averages are coming off a positive week — it was the Dow’s best week since early April — as well as their second straight positive month. Stocks have moved higher as states around the country have begun to reopen their economies. But widespread protests over the weekend have sparked fears that there could be a second wave of coronavirus cases. – Stevens

– CNBC’s Jeff Cox, Patti Domm, Maggie Fitzgerald, Michael Bloom, Fred Imbert, Christopher Hayes, Gina Francolla and Yun Li contributed reporting.

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