Traders work during the opening bell at the New York Stock Exchange (NYSE) on March 16, 2020 at Wall Street in New York City.
Johannes Eisele | AFP | Getty Images
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10:58 am: Stocks get help from Fed announcement
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
10:50 am: Fed to provide short-term funding in commercial paper market
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
10:33 am: Biotech companies beating the market
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
10:32 am: Analysts highlight defensive stocks like Walmart and P&G in Tuesday’s biggest calls of the day
- 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
10:30 am: Boeing stock down 20% as aircraft maker’s slide worsens
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
10:25 am: Fed announces another $500 billion operation for overnight repo funding markets
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
10:23 am: Amazon stock climbs more than 3%
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
10:20 am: Homebuilder sentiment falls, as coronavirus begins to factor in
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
10:07 am: Tesla stock falls below $420
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
10:06 am: Trump administration wants an $850 billion stimulus plan, reports say
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
10:01 am: Stocks in the red, Dow below 20,000
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
9:58 am: VIX hits another all-time high
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
9:50 am: Regeneron hits 52-week high on hopes of coronavirus drug
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
9:47 am: Shares of McDonald’s slump after dining room closures
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
9:43 am: Stocks pare gains shortly after the open
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
9:30 am: Stocks open in the green, Dow up 400 points
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
9:15 am: Retail sales fell in February
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
9:03 am: These are the ultimate ‘social distancing’ stocks, Piper Sandler says
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
8:38 am: Morgan Stanley expects a global recession this year
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
8:30 am: Treasury yields rebound just sightly
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
7:37 am: Tech titans erase more than $1 trillion in market sell-off
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
7:31 am: Nordstrom says it will close US stores, suspends 2020 guidance
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
7:14 am: Cramer says wild futures swings are ‘a total joke’
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
7:05 am: Regeneron speeds up coronavirus drug timeline
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
7:00 am: Stocks set to rebound
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 and Michael Sheetz.
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