Stock market live updates: Dow up 900, Nasdaq rises 4%, bottom in?

Stocks ripped higher to start the holiday-shortened week as a combination of positive headlines eased investor angst after last week’s abysmal March jobs numbers. Though the White House said this week’s COVID-19 deaths could be substantial, the administration struck a more optimistic tone at its press conference on Sunday.

Here’s what’s happening:

9:31 am: Stocks start the week in the green, Dow up 900 points

U.S. stocks opened with sharp gains on Monday with the Dow Jones Industrial Average rallying about 920 points or 4.2%. The S&P 500 rose 3.86% and the Nasdaq Composite gained more than 3.7%. — Fitzgerald 

8:55 am: Bank of America sees booming rescue loan demand

Bank of America said Monday that it’s seen fierce demand for emergency rescue loans with current applications already accounting for nearly 10% of the entire amount allocated by Congress. The bank confirmed that it has received applications from 177,000 small businesses for a total of $32.6 billion in financing. The current Bank of America numbers are its applications and do not represent the sums the Small Business Administration has approved. The bank was the first major lender to set up and launch its portal for the Paycheck Protection Program though it was quickly inundated with requests. — Franck

8:51 am: Coronavirus latest: Spain’s death toll continues to decline, New York governor sees slight plateauing in the death toll, but said it could be a ‘blip’

On Monday, Spain reported 637 deaths, down from 674 the previous day, which continues a downwards trend after a peak of 950 recorded on Thursday. A total of 13,055 people have died in Spain from the virus. Spain reported that the number of confirmed coronavirus cases in the country had topped 135,302, up from 130,759 the previous day.

On Sunday New York Governor Cuomo said there was a slight plateauing in the death toll, but noted that it could be a “blip.”  Cuomo also said the state could be near an apex, though it won’t be clear for the next few days. There’s been a shift of case numbers to Long Island while cases in New York City are reduced, likely a result of people traveling out of the hard-hit city to take refuge elsewhere. – Newburger, Ellyatt

8:30 am: Credit Suisse downgrades Zoom Video for its ‘ultra-premium valuation’

While high flying stay-at-home stock Zoom Video has added millions of users this year due to the coronavirus shutdown Credit Suisse can no longer justify its “ultra-premium valuation.”  The Wall Street firm downgraded shares of the video conferencing company to underperform from neutral, saying Zoom is currently trading at 40 times its calendar year consensus revenue estimates, “the richest in software.” “We commend Zoom for being a superhero of the current health crisis, though our responsibility as equity analysts compels us to distinguish great companies from great stocks,” Credit Suisse said.  The high flying stock has gained 47% in two months, as the stay-at-home trend boosts usage. Shares of Zoom Video tumbled more than 10% in premarket trading on Monday. — Fitzgerald 

8:22 am: Oil lower despite hints Russia and Saudi Arabia are ‘very close’ to deal

Oil prices dipped on Monday to reverse earlier gains seen after the CEO of Russian sovereign wealth fund RDIF told CNBC that Moscow and Riyadh were “very close” to a deal. “I think the whole market understands that this deal is important and it will bring lots of stability, so much important stability to the market, and we are very close,” Kirill Dmitriev of the Russian Direct Investment Fund told CNBC’s “Capital Connection” on Monday. U.S. West Texas Intermediate crude fell 3% to trade at $27.44 per barrel, while international benchmark Brent crude dipped 2.6% to $33.21 per barrel. Earlier in the session, WTI fell more than 9% after a meeting between OPEC and its allies, initially scheduled for Monday, was delayed, stoking fears that a production cut might face hurdles. The meeting is now “likely” taking place on Thursday, according to sources familiar with the matter. — Stevens

8:15 am: Recuperating Art Cashin says the market is in for a long road to recovery

Market guru Art Cashin is making his way back to recovery after a bad car crash earlier this year. While he said he’s getting back to health, he thinks it will take a while before the markets and the economy can say the same. “This is enormous. We have never seen an instant recession like this. This is going to take a while to work out,” Cashin, the head of floor operations for UBS, tells CNBC’s Bob Pisani. Cashin also sees more trouble ahead for oil and says he understands why the New York Stock Exchange floor was closed but still believes it is a vital part of market operations. — Cox

8:09 am: Buybacks to fall 50% in 2020, Goldman Sachs says

Share repurchases by S&P 500 companies will fall by 50% to $371 billion this year, Goldman Sachs said in a note to clients. Many companies, including the country’s largest banks and airlines, have announced that they are suspending buybacks for at least the next quarter due to the coronavirus. Goldman added that the companies that have announced suspensions so far accounted for 27% of total buybacks last year. “Reduced demand from the principal buyer of shares during the past decade means wider trading ranges, less downside support, and slower EPS growth,” the note said. The note also projected dividends to decline by 25% this year. — Pound

7:52 am: Bill Ackman grows more confident about virus forecast

Hedge fund manager Bill Ackman, who said last month that “hell is coming” because of the COVID-19 pandemic, said in a series of tweets on Sunday that he is growing more optimistic about the public health situation. “While it is hard to be positive when we know that tens of thousands more will die and many more will get severely sick, I have no choice but to be more optimistic about the intermediate future based on the data and facts I have seen recently. I hope I am right,” Ackman wrote. The CEO of Pershing Square Capital Management said he believed that there is a very high number of people who have been infected with the virus and never known it, citing some preliminary data from one California city, which could mean the economy would be able to reopen sooner than expected. — Pound

7:30 am: Dow futures up 700 points, stocks to rally to start holiday-shortened week

U.S. stock futures pointed to gains of more than 3% at the start of trading on the holiday-shortened trading week. Futures contracts tied to the Dow Jones Industrial Average pointed to an opening rally of 800 points, more than 3.5%. S&P 500 an Nasdaq futures also pointed to jumps of nearly 4% by the opening bell. The expected rally to start the day Monday comes after the major stock indexes fell in the prior week after record-breaking unemployment numbers and a whopping payrolls decline of more than 700,000 for the month of March. — Franck

— CNBC’s Jeff Cox and Maggie Fitzgerald contributed reporting.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Leave a Reply

Back to top