Dow up 400, Boeing driving gains, Facebook falls on boycott

Dow futures rise as Wall Street tries to recover from its worst day since March

The New York Stock Exchange (NYSE) stands in lower Manhattan on the first day that traders are allowed back onto the historic floor of the exchange on May 26, 2020 in New York City.Spencer Platt | Getty ImagesThis is a live blog. Please check back for updates.11:09 am: Earnings guidance down significantly from prior yearsThe number of companies that have given earnings guidance for the second quarter is down more than 60% from the average over the past five years, according to FactSet. Many companies withdrew or never issued guidance as the coronavirus pandemic slowed the national economy to a crawl. The lack of guidance could lead to larger than normal differences between Wall Street estimates and reported results when earnings season picks up again. —Pound10:57 am: Florida case growth slows, but positive rate risesFlorida confirmed 5,409 new coronavirus cases on Sunday, the state’s health department reported Monday, down from 8,424 new cases confirmed on Saturday. However, the percent of total tests that came back positive rose to 13.67%, up from 12.21% reported the previous day. Stocks moved higher following the news, with the Dow now trading more than 400 points higher. —Feuer, Pound10:35 am: NYSE advancers lead decliners 3-1About three stocks rose for every decliner at the New York Stock Exchange as Wall Street tried to shake off a record spike in coronavirus cases over the weekend. FactSet data showed 2,126 NYSE-listed names were higher while 642 stocks declined. —Imbert10:10 am: Most fund managers see next 20% stock market move as lower- surveyCitigroup’s quarterly fund managers survey shows  about 70% believe the next 20% move in stocks will be lower,  not higher.   Sixty-two percent now see Democrat Joe Biden winning the White House, compared to 70% who expected President Donald Trump to be re-elected , back in December. The survey was evenly split on the presidential election in March. The  managers are also holding twice the amount of cash as they had last June, and they are more reluctant to put new money to work in stocks than they were in March. —Domm10:07 am: Pending home sales surge a record 44.3% in MayHome buyers flooded into the market in May as the economy starts to recover from the coronavirus pandemic. Pending home sales spiked a stunning 44.3% in May compared with April, the National Association of Realtors said Monday. That is the largest one-month jump in the history of the survey, which dates back to 2001. The reading beat expectations of a 15% gain, according to Dow Jones. New coronavirus hot spots and continued spread of the disease could derail the trend some economists say. — Fitzgerald 10:01 am: Bank stocks rise ahead of dividend announcementsShares of major banks moved higher in early trading as the announcement of dividend plans looms after the bell. Shares of JPMorgan Chase, Citigroup and Wells Fargo all rose more than 1% on Monday morning. Wells Fargo is seen by many on Wall Street as likely to announce a dividend cut following the Federal Reserve’s decision last week to tie dividend limits to earnings. —Pound9:58 am: Consumer staples outperformThe S&P 500 consumer staple sector rose more than 1% on Monday, compared to the S&P 500 slight losses in morning trading. Shares of Procter & Gamble gained 1.7%, while Clorox rose 0.5%. Walgreens also climbed 2.5%. –Li9:50 am: Big tech struggles in early tradingThe Nasdaq Composite slipped 0.6% in the opening minutes of trading as mega-cap tech stocks lost ground. Shares of Facebook, which has seen major advertisers pull their business in recent days, dropped 3%. Amazon’s stock fell 1.8%, while Alphabet and Microsoft were also trading in negative territory. —Pound9:42 am: S&P 500 and Nasdaq turn negativeThe S&5 500 and Nasdaq Composite turned negative shortly after the opening bell. Shares of technology companies slid. A resurgence in coronavirus cases over the weekend could be pressuring equities. — Fitzgerald 9:31 am: Stocks start the week in the green, Dow up 200 pointsU.S. equities started the week on a strong foot with all three major averages registering gains. The Dow Jones Industrial Average rose 206 points, helped by a 6% jump in Boeing. The S&P 500 rose 0.55% and the Nasdaq jumped 0.25%. — Fitzgerald 9:21 am: Beyond Meat falls after double downgrade from BarclaysShares of Beyond Meat sank more than 4% in premarket trading after Barclays downgraded the stock by two notches, to underweight from overweight. CNBC Pro subscribers can read more about the mover here. —Pound9:00 am: Credit Suisse downgrades theaters as cases riseAnalysts at Credit Suisse downgraded movie theater chains after rising cases of the coronavirus led some areas to pause or roll back reopening plans and led to further delays in major summer film releases. The firm downgraded AMC Entertainment to underperform from neutral, slashing its price target in half to $2 per share, and Cinemark Holdings to neutral from outperform. Credit Suisse’s new target for Cinemark is $13 per share, down from $20. Shares of AMC dropped more than 7% in premarket trading, while Cinemark fell 3.1%. —Pound8:45 am: Facebook shares under pressure as more advertisers join boycottFacebook’s stock fell more than 3% in premarket trading Monday as more companies said they will pause advertising on its platforms. Since Friday, Starbucks, Coca Cola and Guinness-parent Diageo all announced they will halt advertising on social media. The move is seen as part of a broader effort among a growing number of companies to force social media platforms to crack down on hate speech and disinformation on their platforms. For its part, Starbucks said in a press statement that it believes “in bringing communities together, both in person and online, and we stand against hate speech.” — Franck8:42 am: Gilead shares jump after it sets prices for coronavirus treatmentGilead Sciences said it would start charging for its coronavirus treatment remdesivir, sending shares up nearly 3% in premarket trading. The Foster City, California-based drugmaker estimated the cost at $3,120 for a typical U.S. patient with commercial insurance. The price for governments in developed countries will be $390 per vial, while private U.S. insurers will pay $520, meaning that Medicare patients will pay less than those with private insurance. The typical treatment is a five-day course entailing six vials, the company said. – Cox8:23 am: Coronavirus cases continue to rise as more areas restrict movementsCoronavirus cases rose by 85,632 over the weekend amid a continued surge in hotspots in the South and West. That rise represented a 3.5% increase from Friday to Sunday, according to the Covid Tracking Project. Deaths, which are a lagging indicator, grew by 779 to 119,429, or 0.7%. In response to the increase in cases, a number of governors and local officials have begun reimposing restrictions. Texas has shut down bars and some Florida beaches are closing as well. Florida saw 18,115 new cases over the weekend, a 14.7% surge, though hospitalizations increased just 1.8%. Arizona, another trouble area, saw another 7,360 cases in the two-day period, up 11%, while hospitalizations rose 2.2%. – Cox8:19 am: Shares of Coty surge nearly 20% on Kardashian Shares of cosmetic company Coty jumped 18% in premarket trading on Monday following news that the company will buy a 20% stake in Kim Kardashian West’s makeup brand. Coty had said earlier this month that it was talking to Kardashian West about a possible collaboration. Coty will pay $200 million for the partial ownership. This is Coty’s second deal with the Kardashian/Jenner family this year, having already taken a 51% stake in Kylie Jenner’s brands. — Fitzgerald 8:09 am: Boeing soars ahead of test flightsShares of Boeing jumped 7.7% as the aerospace giant gets set for re-certification flights of the 737 Max, which has been grounded by regulators for more than a year following two fatal crashes. The flights are scheduled to begin Monday and will gather data for regulators to examine whether the fixes made to the plane are sufficient for it to return to commercial fleets. —Pound8:02 am: Southwest jumps on Goldman upgradeGoldman upgraded shares of Southwest on Monday to buy from sell and raised its 12-month price target to $47 per sahre from $35 per share, sending shares of the airline up nearly 4% in premarket trading. The firm said the airline industry is managing its cash burn better-than-expected and likes Southwest for its domestic focus. “We expect its primarily domestic network and industry-leading balance sheet to drive a relatively faster and stronger recovery from the COVID-19-driven downturn in demand for air travel,” Goldman said in a note. Goldman also said a resurgence in coronavirus cases is not helping the recovery of the ailing industry. — Fitzgerald7:40 am: Stock futures rise despite a surge in U.S. coronavirus casesStock futures were higher in morning trading on Monday even as coronavirus cases in the U.S. continued to surge. The Dow Jones Industrial Average futures climbed about 140 points, indicating an opening gain of about 200 points. S&P 500 futures gained 0.3%. Nasdaq-100 futures were slightly lower. The moves in futures market followed a week of sharp losses as the recent spike in virus cases raised concerns about the pace of the economic recovery. The Dow and the S&P 500 were on pace to post their first monthly decline in three. — Li— with reporting from CNBC’s Jeff Cox. Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.


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