Stock market live Monday: Tech leads market higher, travel stocks falter, Walmart climbs

U.S. equities started the week with slight gains on Monday, lifted by advances in mega-cap technology darlings Apple and Microsoft.  However, worries about a resurgence in coronavirus cases kept the gains in check. 

• Nasdaq closed up 1.11% for its 11th positive day in 12 at a new record close of 10,056.47 and only its 2nd close above 10K and its 20th record close this year
• Nasdaq is up 12.08% year to date
• Nasdaq is up 51.65% from its 52-week low of 6,631.42 on March 23
• S&P 500 closed up 0.65% for its second positive day in three
• S&P 500 is down 3.5% year to date
• S&P 500 is 42.25% above its 52-week low of 2,191.86 on March 23
• Seven out of 11 sectors were positive today led by tech up 1.67%
• Dow closed up 0.59% for its first positive day in four
• Dow is down 8.81% year to date
• Dow is 42.89% above its 52-week low of 18,213.65 on March 23 —Francolla, Pound

All three major indexes finished in positive territory on Monday, led by the Nasdaq up 1.1%. The Dow gained 152 points, or 0.6%, while the S&P 500 rose 0.7%. —Pound

Texas Gov. Greg Abbott said at a news conference Monday that the coronavirus is spreading at an “unacceptable rate” in the state, according to NBC 5 in Dallas-Fort Worth. Abbott warned during the news conference that the virus is spreading among younger people in settings such as bars. —Pound

U.S. stocks may be on pace for a solid start to the week, but that’s coming under thin trading. The SPDR S&P 500 ETF Trust (SPY), which tracks the broader market index, had traded just over 56 million shares with less than one hour left in the trading session. That’s well below the ETF’s 30-day volume average of 105.01 million. Volume across exchanges was not much better. FactSet data shows U.S. composite volume sat around 7.3 billion shares traded, below a 50-day average of 10.2 billion. —Imbert

With roughly one hour left in the trading session, the major average were headed for solid gains to start the week. The Dow was up more than 100 points, or 0.7%, while the S&P 500 also traded 0.7% higher. The Nasdaq Composite advanced 1.1%. —Imbert

Apple said Monday it will stop using chips built by Intel on Mac computers. Instead, the company will use its own. This change, according to Apple, will let the company offer faster performance on its computers. Apple’s first computers without Intel chips will be released before the end of 2020. Apple shares remained higher while Intel’s stock traded near its session high. —Imbert, Leswing

New Jersey Gov. Phil Murphy tweeted on Monday that casinos in the state can reopen starting July 2 at an operating capacity of 25%. This could benefit Caesars Entertainment, owner of the Caesars Palace hotel and casino in Atlantic City. Caesars shares were down nearly 2% in afternoon trading. —Imbert

Oil prices moved higher on Monday, boosted by supply cuts as well as an uptick in demand as the economy begins to reopen. West Texas Intermediate, the U.S. oil benchmark, settled 71 cents, or 1.79%, higher at $40.46 per barrel. This is the first time the contract has settled above the key $40 mark since early March. However, WTI did close off its highest levels of the day as rising coronavirus numbers capped upside gains. Oil is coming off its seventh positive week in the last eight. –Stevens

Famed short-seller Jim Chanos said Monday he is still betting against electric-car maker Tesla, even as the company’s stock has more than doubled in 2020. “We are still short Tesla,” Chanos, founder of Kynikos Associates, told Bloomberg TV in an interview. “I know people are counting on all kinds of growth going forward, but the fact of the matter is the company’s rate of growth has slowed dramatically.” Chanos noted the company’s revenues are likely to be flat for a sixth straight quarter and added Tesla is not a market leader in either electric car batteries or autonomous driving. “This company is a wonderful barometer of where people’s views are on companies and speculation because people see Tesla as they want to see it.” Tesla shares are up more than 138% year to date, surging about 90% this quarter alone. —Imbert

Reports indicate Apple may announce as soon as next week at its Developers Conference that it is moving all of its Macs from Intel to its own Arm chips beginning in next year. “We believe the move to ARM is likely to keep Apple ahead of its competition in terms of battery performance which could manifest itself in longer battery life, less fan noise and/or thinner laptops,” Goldman Sachs analyst Rod Hall said. But the move may not save the company any more money as the firm said “5G cost increases likely to more than offset this,” wrote Hall, who reiterated his sell rating on the tech giant.   “Interestingly, our detailed analysis of incremental costs from 5G adoption in the iPhone results in a conservative negative cost impact of ~$2.9bn with actual impacts likely higher than that.” The firm did raise its price target to $263 from $246. Shares are up 2% in late trading. —Bloom

The New York Stock Exchange submitted an amended rule change on Monday to the Securities and Exchange Commission to allow for companies to go public using direct listings, Reuters reported. In December, the SEC declined a request by NYSE to allow companies going public through direct listings. —Pound, Reuters

An analyst at Jefferies initiated coverage of DraftKings with a buy rating and a price target of $55 per share. That target implies a 30% upside over the next 12 months. “DKNG is among the best positioned to capitalize on the growth of digital/sports wagering in the U.S., which we believe is in the initial stage of a decade-long acceleration,” said David Katz of Jefferies in a note to clients. —Imbert

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• American Airlines — The airline was under pressure, falling about 7%, amid concerns the company would need to raise capital to stay afloat.
• Apple — The tech giant was up more than 2% after a Cowen analyst raised his price target on the stock to $400 per share from $335. The new target implies a 13% upside over the next 12 months.
• TripAdvisor — TripAdvisor shares fell after the company announced it expects a “significantly negative” adjusted EBITDA loss for the second quarter.

Click here to read more. —Imbert

The major averages were up slightly on Monday as shares of major tech-related companies all advanced. The Dow and S&P 500 climbed 0.1% and 0.2%, respectively, while the Nasdaq Composite gained 0.6%. Microsoft, Facebook, Apple, Netflix and Alphabet all traded at least 0.4% higher. However, the market’s gains were kept in check amid lingering worries over spikes in coronavirus cases. —Imbert

Jefferies raised its price target on the education technology company to $80 from $55 and said its more “constructive on CHGG after an upbeat CEO meeting.” “Chegg is leaning into recent initiatives that have yielded better than expected results, such as international growth and account sharing prevention,” analyst Brent Thill said.  “Bears will push back on valuation, but we are taking a long-term view and believe Chegg will remain at the forefront of educational transformation,” he said. The stock up over 1% in midday trading. —Bloom

The firm said the merchant services and mobile payment aggregator had several “underappreciated drivers” of the stock. “Data from SQ’s recent PPP originations update indicates that the resiliency of the merchant base may be stronger than investors fear,” Barclays analyst Ramey El-Assal said. The firm also noted that third-party data showed “continued improvement in small and medium-sized business sales.” Shares of Square are up over 6% in early trading. — Bloom

Existing homes sales fell 9.7% in May, compared with April, to a seasonally adjusted annualized rate of 3.91 million units, according to the National Association of Realtors.  Sales were down 26.6% annually. That is the largest annual decline since 1982, when interest rates were about 18%. While the sales plummeted, Realtors expect this will represent the bottom of the slump in sales. — Fitzgerald, Olick

President Donald Trump’s top economic advisor, Larry Kudlow, said Monday that a second wave of the coronavirus “isn’t coming” and categorized recent upticks in new cases as isolated events in regional hot spots. His comments came after the U.S. reported more than 30,000 new infections on Friday and Saturday, the highest daily totals since May 1. Peter Navarro, one of Trump’s top trade advisors, said Sunday that the White House was, in fact, preparing for another wave of the disease. Kudlow also said Monday that House, Senate and White House leaders will likely have another stimulus package in the weeks following Congress’s July recess. — Franck

U.S. stocks have seemingly been able to bat away most negative news items in recent weeks, but Citi’s Tobias Levkovich warns this doesn’t mean the market is impervious to another downturn. “The notion that the market advance cannot falter because of corporate bond buying programs was shown to be inaccurate when the S&P 500 plunged” on June 11, said Levkovich. Despite its recent hiccup, the S&P 500 remains up more than 40% from its March 23 low amid unprecedented economic support from the Federal Reserve and U.S. lawmakers. “There is this persistent sense that nothing can derail equities, including possible second COVID infection waves, election concerns, China-India clashes, North Korean incitement or even disappointing economic data,” adds Citi’s chief U.S. equity strategist. “Hence, this Teflon market is letting no negative news stick … until it does.” —Imbert, Bloom

Wall Street firm B. Riley FBR said Vista Outdoor, a marketer of outdoor sports and recreation products, should see “continued firearms/ammo demand strength.” Analyst Eric Wold said the company will get a boost as the presidential election nears and consumers resume outdoor activities in the wake of the coronavirus. The firm raised its price target on the stock to a Street high $16 from $13. Shares are up over 1% in early trading. – Bloom

Shares of Virgin Galactic rose as much as 14% in early trading after the company announced it signed an agreement with NASA’s Johnson Space Center. The company will be able to train astronauts for trips to the International Space Station, as well as look to buy seats on flights to the ISS. – Sheetz

• Cowen raised its price target on Apple to $400 from $335.
• Stifel raised its price target on Peloton to $62 from $55.
• Wells Fargo upgraded Gap to overweight from underweight.
• UBS upgraded Walmart to buy from neutral.
• UBS downgraded American Express to sell from neutral.
• JPMorgan initiated Nikola as neutral.
• Barclays upgraded Marriott and Hilton to overweight from equal weight.
• Jefferies initiated DraftKings as buy.
• Jefferies upgraded Campbell Soup and Conagra to buy from hold.
• B. Riley FBR downgraded Foot Locker to neutral from buy.
• Benchmark upgraded Western Digital to buy from hold.

Pro Subscribers read more here. — Fitzgerald 

U.S. equities started the week in the red, as an uptick in cases of the coronavirus in the U.S. and abroad worried investors about the economy reopening successfully. The Dow Jones Industrial Average fell 75 points, or 0.35%. The S&P 500 was 0.26% lower. The technology-heavy Nasdaq Composite was flat, helped by gains in Microsoft and Apple. — Fitzgerald

Minutes before the opening bell, futures on the Dow Jones Industrial Average rose by 100 points, or 0.5%, but the 30-stock benchmark was set for an opening loss of about 100 points. The gap between the direction of futures and the “implied open” is partly due to futures expiration on Friday. S&P 500 futures and Nasdaq-100 futures gained 0.5% and 0.7%, respectively, implying a flat open for both indices. —Li

Cowen said Apple is primed for the 5G upgrade cycle when it begins later this year. “We are raising our iPhone shipment forecasts based on our latest field work and revising our P/E valuation multiples for the iPhone business ahead of the 5G upgrade cycle, and for the Services segment on expanding recurring revs and peer multiples,” analyst Krish Sankar said. “We remain bullish on Apple’s stock and view it as a defensive name with a stock multiple-enhancing Services segment that continues to benefit from the work from home & distance learning environment, & a cash flow generating iPhone business that should accelerate as we enter a 5G upgrade cycle,” he added. Shares are up 0.53% in premarket trading. —Bloom

Shares of Sherwin-Williams rose more than 2% during Monday’s premarket trading after the company increased its sales guidance for the current quarter. The company now expects net sales to decrease year-over-year by a mid-single digit percentage, compared with prior estimates of a low to mid-teens percentage drop. “We are raising our second quarter sales guidance given our ability to capture and serve greater than expected demand in our North American architectural businesses,” said chairman and CEO John Morikis. Shares of the paint producer have gained 41% in the last three months. – Stevens

JPMorgan initiated coverage on shares of battery-electric and hydrogen-powered truck maker Nikola on Monday with a neutral rating. The firm’s $45 target implies a more than 30% drop ahead for the stock, which has nearly doubled since the company went public through a reverse merger on June 4.

CNBC PRO subscribers can read more here. — Stevens 

Shares of popular consumer technology companies rose in premarket trading with Microsoft and Apple up 0.7% each. Investors have bought into the resilient technology shares over the last few months amid the coronavirus pandemic. E-commerce hub Amazon rose 0.5% before the opening bell while Zoom Video added 1.3%. Online payment companies Mastercard, PayPal and Visa gained about 1%, 0.7% and 0.35%, respectively. — Franck

Some big-name retail stocks rose in premarket trading Monday after being upgraded by Wall Street analysts. Gap jumped more than 5% after Wells Fargo upgraded the stock to overweight from underweight, saying the market undervalued the company’s Athleta brand and calling the stock “a compelling risk/reward.” Walmart rose 0.7% after being upgraded to buy from neutral by UBS. Other rising retailers include Dollar General and Bed Bath & Beyond. — Pound

Dow futures were up 150 points in early trading Monday, but the moves indicated an opening loss of about 60 points. The big gap between the direction of futures and the “implied open” is due to futures expiration on Friday, as well as recent market volatility. “The futures are trading a lot higher this morning, but that is very misleading…because they fell significantly on Friday between 4:00 (when the cash market closed) and 4:15 (when the futures closed),” Matt Maley, chief market strategist at Miller Tabak, said in a note. “Therefore, most of this morning’s bounce in the futures is merely taking back what it lost after the close of trading on Friday.” — Li

American Airlines announced on Sunday that it’s looking to secure $3.5 billion in new financing to improve its liquidity as it copes with travel restrictions introduced by the coronavirus. American plans to raise $1.5 billion through sales of equity and convertible notes due in 2025, the company said in a statement. Meanwhile, the airline said it will offer another $1.5 billion in senior secured notes and that it’s seeking a $500 million term loan facility due 2024. 

American shares fell 8.5% in premarket trading, while United, Delta and Southwest dropped 4%, 2.6% and 2%, respectively. — Franck

Recent data show that coronavirus cases in the U.S. and abroad are increasing. The largest single-day increase in global coronavirus cases was recorded on Sunday, according to the World Health Organisation, after more than 183,000 new cases were reported worldwide. The U.S. saw more than 36,000 new cases reported on Sunday after more than 30,000 new cases were reported on both Friday and Saturday. Nevada, Florida, California and Arizona have reported record-high single-day infections as their economies attempt to open from the shutdown. Widespread testing is contributing to the uptick in reported cases. — Fitzgerald 

Dow Jones Industrial Average futures were higher by about 100 points. S&P 500 futures and Nasdaq-100 futures were also slightly higher. Major U.S. stock averages are coming off their fourth weekly gains in five weeks. Gains were capped on recent upticks in new coronavirus cases. — Franck

— CNBC’s Jesse Pound and Pippa Stevens contributed reporting.

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