Volatile day, traders search for bottom, Apple rebounding

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Volatile day, traders search for bottom, Apple rebounding


Traders work during the opening bell at the New York Stock Exchange on February 27, 2020.

Johannes Eisele | AFP | Getty Images

Stocks are swinging wildly as Wall Street attempts to come back from their worst weekly rout since the financial crisis. Check here for live updates.

11:36 am: Utilities and real estate join staples out of correction territory

The real estate and utility sectors followed staple stocks to move out of correction territory as Wall Street attempted to rebound from its worst weekly rout since the financial crisis. Utility leaders include Eversource Engergy and Consolidated Edison. The health care sector is also teetering on the edge of correction levels.– Francolla, Li

11:16 am: Dow jumps 550 points

The market is building on its momentum, with the Dow surging about 560 points, as traders bid shares higher on hopes that the Federal Reserve will act quickly to combat an economic slowdown from the coronavirus. The S&P 500 was last up 1.8%– Li

11:10 am: Morning bounce lets Fed breathe ‘sigh of relief,’ Blinder says

Former Federal Reserve Vice Chairman Alan Blinder said the Fed is basically committed to a rate cut at its next meeting but that Monday’s bounce in the stock market made it less likely for a move before then. “This morning I think they’re probably breathing a little bit of a sigh of relief,” Blinder said on “Squawk on the Street,” adding that the market could go down later in the day. — Pound

10:52 am: Dow rallies more than 400 points at session high

The Dow‘s rebound gained steam in late-morning trading, rising about 430 points. The S&P 500 climbed 1.4%, while the tech-heavy Nasdaq traded 1.3% higher. Apple is leading the market comeback, up more than 4.5%. Stocks suffered their worst week since 2008 last week on coronavirus scare.– Li

10:43 am: Staples is sole S&P sector not in correction

The consumer staples sector moved out of correction territory as it led the S&P 500 higher in Monday’s trading. Top performers in the sector included Costco and Clorox, which were up more than 7% and 6%, respectively. The other 10 S&P sectors remain in correction territory. – Francolla, Stevens

10:40 am: Trump again berates the Fed, wishes for lower interest rates

President Donald Trump bashed the Federal Reserve for the nth time on Monday and argued via tweet that the central bank should cut rates “for all the right reasons” amid fears of economic slowdown thanks to the coronavirus. “As usual, Jay Powell and the Federal Reserve are slow to act. Germany and others are pumping money into their economies.” Powell, whom Trump nominated to lead the Fed and once called “strong,” “committed” and “smart,” has often taken fire from the White House, which has repeatedly jawboned the central bank to ease borrowing costs. — Franck

10:31 am: Fed cuts can provide a ‘floor’ for stocks, JPMorgan strategist says

David Kelly, chief global strategist at JPMorgan Asset Management, said on “Squawk on the Street” that rate cuts from the Federal Reserve may not help the economy but would support stocks. “The lower you push long-term rates, the lower you push short-term rates, the harder it is to justify being in bonds as opposed to stocks. And I think that does help put some sort of floor under the stock market,” Kelly said. He also said that he does not expect the coronavirus outbreak to hurt the economy long-term. “I always thought 2020 was going to be the year of the election. Turns out 2020’s the year of the virus, but it’s probably just this year.”.  — Pound

10:29: Apple, Microsoft among the tech winners as broader sector struggles

Apple and Microsoft moved higher in early trading as many names in the tech sector, including chip stocks, came under pressure. Shares of Apple gained more than 2% after Oppenheimer upgraded the stock to an outperform rating, saying to buy the “recurring revenue machine.” Apple and Microsoft are still trading in correction territory, however, with each 14% below recent highs. – Stevens

10:17 am: 28 out of 30 Dow components remain in correction levels or worse

As the Dow tries to rebound from last week’s sharp losses, 28 out of the 30 components in the index remain in correction territory, or at least 10% below 52-week high levels. Coca-Cola and P&G are the two names that have exited correction territory. – Francolla, Stevens

10:12 am: Stocks pare gains, Dow briefly turns negative

The major averages cut their gains after weaker-than-expected manufacturing data, with the Dow and S&P 500 briefly turning negative. – Stevens

10:05 am: Manufacturing data is weaker-than-expected

The Institute for Supply Management (ISM) said on Monday its index of national factory activity was 50.1 last month, which was short of the 50.8 analysts had been expecting. A reading above 50 indicates expansion in the manufacturing sector, but February’s reading was down from 50.9 in January. – Stevens

9:50 am: Robinbood experiences ‘system-wide outage’

Robinhood, the free-trading pioneer favored by younger traders, said it’s experiencing a “system-wide outage” amid heavy trading volumes on Monday. Stocks are rebounding from their worst week since 2008. —Li

9:41 am: Dow up 150 points in volatile trading, Apple leads tech rebound

Dow quickly cut its gains in half after the opening bell, last up about 160 points. Shares of Apple rallied 2.3% in morning trading, leading the rebound in the technology sector. Microsoft rose 1.7%, while Amazon and Netflix are also in the green.—Li

9:35 am: Here are the biggest calls of the day on Monday

Analysts just upgraded a ton of stocks in the wake of the market plunge.

  • Oppenheimer upgraded Apple to outperform from perform.
  • JPMorgan upgraded General Electric to neutral from underweight.
  • Cowen upgraded Verizon to outperform from market perform.
  • Baird upgraded Western Digital to outperform from underperform.
  • Stifel upgraded Western Digital to buy from hold.
  • Piper Sandler upgraded JPMorgan to overweight from neutral.
  • Guggenheim initiated Casper Sleep as buy.
  • Stephens named Activision Blizzard as a top pick.
  • Argus upgraded American Express to buy from hold.
  • UBS downgraded SmileDirectClub to neutral from buy.
  • Evercore ISI upgraded Southwest Airlines to outperform from in line.
  • Evercore ISI upgraded Twitter to in line from underperform.

CNBC Pro subscribers can read more here— Bloom

9:31 am: Wall Street rebounds with Dow up 300 points

The Dow Jones Industrial Average climbed about 300 points at the open, attempting to post its first gain in eight days, as Wall Street calls for action from global central banks to combat the coronavirus-induced slowdown. The S&P 500 was up 0.7% after losing more than 11% last week. Traders await a key reading on U.S. manufacturing at 10 a.m. ET for any negative impact from the epidemic.—Li

9:07 am: Dow futures turn positive, now up more than 200 points

Futures on the Dow Jones Industrial Average erased early losses, now up about 211 points. S&P 500 and Nasdaq futures also pointed to gains at the open. Traders are betting on coordinated action from global central banks to offset the negative economic impact from the coronavirus.—Li

8:28 am: 10-year yield could go to 0.75%, strategist says

The U.S. Treasury 10-year yield could fall further into record-low territory and eventually reach 0.75%, stratetgist Komal Sri-Kumar said. “Usually, when the yield starts to go down, it goes down very fast,” he said on CNBC’s “Squawk Box.” “Now that we are almost at 1% … my next target is 0.75%.” He noted that inflation and economic growth expectations all suggest the benchmark rate will go lower. The 10-year yield hit a record low overnight, breaking below 1.04% for the first time ever. —Imbert

8:09 am: Wall Street anticipating some big Fed rate moves

Markets have no doubt that the Federal Reserve is about to come through with some serious interest rate cuts to combat a slowdown related to the novel coronavirus. Traders have completely priced in a 50 basis point reduction by the central bank’s March meeting, a 75% chance of another 25 basis points in April, and a 70% probability for one more 25 basis point move by September, according to the CME’s FedWatch tracker. That’s not all: The market is assigning a 40% chance for one more move in December that would take the overnight funds rate down to a range of 0.25%-0.5%, and a non-negligible 10% probability of going all the way to zero. On the latter point, JP Morgan economists sees an even bigger likelihood – the firm’s economists think there’s a 1 in 3 chance that the Fed goes to zero by the end of summer. – Cox

8:06 am: Apple shares higher after Oppenheimer upgrade

Shares of Apple rose 1.7% in premarket after Oppenheimer upgraded the tech giant, saying that the company’s products and strong balance sheet should help it withstand any economic uncertainty d

ue to the coronavirus. “We believe Apple products and services will prove more resilient than competitive products in uncertain times,” analyst Andrew Uerkwitz said. The firm also said the company is a “recurring revenue machine” and said the tech giant should be able to withstand any coronavirus fears.— Bloom

8:00 am: ECB says it ‘stands ready’ to step in

The European Central Bank said Monday that the fast-spreading coronavirus added uncertainty to global growth prospects, and it’s willing to intervene to combat any economic impact. “The Governing Council stands ready to adjust all its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner,” ECB Vice President Luis de Guindos said at a speech in Monday. The remarks marked a change in tone from just last Thursday when president Christine Lagarde told the Financial Times that the coronavirus hasn’t reached the point where monetary policymakers need to step in. — Li

7:55 am: Clorox shares rally 1.6% amid sanitizing surge

The maker of household cleaning products rallied in premarket trading Monday morning as the coronavirus continued its spread around the globe and fostered demand for sanitizing wipes, gels and sprays. News of novel cases in metropolitan areas like New York City, in particular, has sparked a boost in production at companies like Clorox, Lysol and Purell-parent Gojo Industries that make hand sanitizers and other ethanol and bleach cleaners, the Wall Street Journal reported on Friday.Franck

7:45 am: First coronavirus case in New York City

The first coronavirus case in Manhattan has been confirmed, a woman who recently traveled to Iran and is currently isolated in her home. Meanwhile, the disease is spreading rapidly in South Korea and Japan. South Korea has reported an additional 123 cases of the coronavirus, taking the country’s total number of infections up to 4,335. Japan has confirmed five more cases in Hokkaido, bringing the country’s total number of infections to 77. Iran’s health ministry said 66 people have died due to coronavirus.— Li

7:43 am: Twitter shares jump 5% after Elliott Management pushes for CEO change

Shares of Twitter jumped more than 5% during Monday’s premarket trading after news that Elliott Management founder and billionaire investor Paul Singer is seeking to replace Twitter CEO Jack Dorsey, a person familiar with the matter told CNBC. The firm said that Dorsey’s attention is split between running both Twitter and Square, among other things. Shares of Twitter have shed 22% in the last 6 months. — Stevens

7:35 am: Another record low on the 10-year Treasury yield

The 10-year Treasury yield dropped to a fresh record low below 1.04% as the historic decline in U.S. rates continued amid the coronavirus outbreak and Wall Street calls for Federal Reserve stimulus. The benchmark 10-year rate, which moves inversely with prices, tumbled about 37 basis points in February alone. The fed funds futures market has already priced in a 50 basis point cut at the Fed’s meeting this month, according to CME Fed Watch tool.— Li

7:30 pm: Chart analyst says Friday’s low is the new line in the sand

On Friday, stocks rapidly pared losses in the last 15 minutes of trading, which serves as the first evidence of “downside exhaustion,” according to Rich Ross, Evercore ISI’s technical analyst. Therefore, investors should use the S&P 500′s intraday low on Friday — 2,853 — as the “new line in the sand,” Ross said. Below that level, there are only two levels of support of note at 2,722 (-7%) and 2,632 (-10%), he added.— Li

7:26 am: Bad China economic data spooked investors

China’s official Purchasing Managers’ Index (PMI), a gauge for its manufacturing sector, plunged to a record low of just 35.7 in February from 50.0 in January, the National Bureau of Statistics said on Saturday. Any reading below 50 signals a contraction. The somber reading provides the first official snapshot of the state of the Chinese economy since the outbreak of the coronavirus epidemic which has killed almost 3,000 people in mainland China and infected about 80,000.— Li

7:20 am: Dow futures down nearly 200 points after wild overnight session

The market’s worst rout since the financial crisis is set to resume as stock futures dropped again before the opening bell.  Dow futures were lower by about 168 points, indicated a loss of about 207 points at Monday’s open. The futures market experienced a volatile overnight session where Dow futures traded in a range of more than 1,000 points. S&P 500 and Nasdaq futures also pointed to more losses at the open. — Li

— CNBC’s Thomas Franck, Jeff Cox, Gina Francolla and Michael Bloom contributed reporting

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