Dow futures bounce, oil stabilizes

Dow futures bounce, oil stabilizes

Pedestrians stand in front of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, March 13, 2020.

Mark Kauzlarich | Bloomberg | Getty Images

Stocks bounced from a two-day sell-off as oil prices recovered some of their deep losses. Investors also digested the latest earnings report to gauge the health of corporate America in the age of coronavirus crisis. Here’s what’s happening:

This is a live blog. Check back for updates.

9:31 am: Dow jumps more than 400 points at the open

The Dow Jones Industrial Average opened Wednesday’s session about 410 points higher, gaining some of the ground lost in the past two days. The S&P 500 climbed 2.0%%, while the Nasdaq Composite jumped 2.1%. Stocks rebounded as oil markets stabilized, with prices bouncing off their multi-year lows. West Texas Intermediate crude last jumped 22% to trade at $14.11 per barrel, on pace for its third best day ever.— Li

9:11 am: Larry Kudlow says oil should rebound as the economy starts to reopen

Larry Kudlow, President Donald Trump’s chief economic advisor, said Wednesday that the price of oil should recover over the next several months as the economy starts to reopen following strict coronavirus lockdowns. Oil “demand collapsed. The coronavirus worldwide caused the collapse in demand. Through no fault of anybody, this virus has pushed us into a big economic contraction,” Kudlow said on CNBC’s “Squawk Box.” “We’ll come out of this soon, the economy will reopen, the economy will restart,” he added. “It will, I hope, take care of itself. Markets will take care of themselves over time.” — Franck

8:46 am: Oil jumps 12%, rebounding from steep losses

8:45 am: Texas Instruments rises after earnings

Shares of Texas Instruments gained 2.6% in premarket trading after reporting first quarter results that beat Wall Street expectations. The company reported revenue of $3.33 billion, while analysts expected $3.17 billion, according to Refinitiv. The Dallas-based company expanded its guidance range for the second quarter but did not withdraw it, as many other companies have done. — Pound

8:35 am: BofA upgrades Johnson & Johnson to ‘buy,’ stock up 1.5%

Bank of America Merrill Lynch upgraded Johnson & Johnson stock to a buy rating on Wednesday thanks to what analyst Bob Hopkins described as “our belief that in the current unprecedented environment the most defensive names will continue to outperform.” Hopkins cited J&J’s history of outperforming the broader stock market during turbulent times while its strong first-quarter results and dividend raise “suggest JNJ should deliver solid results.” JNJ, the analyst said, outperformed by 25% and 28% respectively in 2001 and 2008. The stock rose about 1.5% in premarket trading. — Franck

8:28 am: Biogen shares fall after delaying drug

Shares of Biogen fell 5.8% in premarket trading after the biotech company said in its first-quarter earnings release that it expects to complete filings for its Alzheimer’s drug during the third quarter. Brokerage Cantor Fitzgerald said in a note that the timeline, already delayed, seemed “aggressive.” The company’s revenue and earnings for the first quarter did come in above expectations. — Pound

8:26 am: Short-sellers up more than $6 billion betting against energy stocks

Data compiled by S3 Partners shows short sellers have made more than $6 billion in profits by betting against energy stocks as companies in the space are ravaged by oil’s historic plunge. Energy Transfer and Enbridge have yielded the most mark-to-market profits for energy ck short sellers at more than $690 million each in 2020. Those betting against energy have also made over $220 million by betting against Kinder Morgan. — Imbert

8:23 am: Bank of America downgrades Tesla, cites high valuation after stock’s recent run

Bank of America downgraded Tesla on Wednesday after the electric car maker’s recent rally pushed its valuation too high in the firm’s eyes. The bank slashed its rating on Tesla to underperform from neutral, while lowering its 12-month price target to $485 from $500. The new target represents a near 30% decline from Tuesday’s close of $686.72. The bank’s analyst applied average enterprise value to sales and enterprise value to cash flow multiples from “comparable companies” to Tesla and found it was now significantly overvalued. Shares of Tesla have soared 31% this month alone, bringing its 2020 gains to more than 64%. — Li

8:08 am: Chipotle rallies 6% as digital sales surge 81% amid virus outbreak

7:58 am: Wall Street analysts see more upside in Netflix after the company’s earnings report 

The streaming giant surpassed analyst expectations for the first quarter reporting almost 16 million subscribers for the first quarter on Tuesday after the bell. “While the stock has outperformed the rest of our coverage universe this year and throughout the COVID-19 crisis, we believe the outperformance is justified given Netflix’s unique position of being exposed to secular growth that is accelerating as a result of worldwide stay-at-home orders,” Deutsche Bank said.

The feeling was similar at Canaccord. “We are raising our subscriber and revenue estimates again, and while there could be some near-term pull-forward of subscriber additions, we think over time Netflix is well-positioned as the global streaming entertainment leader, continuing to take share from linear TV.”  Shares of the stock are down 1.65% in premarket trading. — Bloom

7:54 am: Netflix down 1.4% after conservative Q2 subscriber guidance

Shares of Netflix fell 1.4% in premarket trading Wednesday despite a sizable jump in subscribers in the first quarter. Though the streaming giant said it added more than double the number of paid net subscribers expected for the first quarter at 15.8 million, Netflix cautioned that its forecast for the second quarter is a far thinner 7.5 million net adds as governments start to relax stay-at-home orders. “The actual Q2 numbers could end up well below or well above that, depending on many factors including when people can go back to their social lives in various countries and how much people take a break from television after the lockdown,” the company said Tuesday. — Franck

7:25 am: Dow futures rise 300 points as oil rout pauses

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