Stock market live updates: Dow jumps 2.5%, Cramer getting optimistic, Amazon record

This is a live blog. Please check back for updates. 

9:53 am: Strong market breadth supporting the rally

As major averages continue their comeback, strong market internals are signaling the bounce could have legs. More than 490 stocks in the S&P 500 were higher shortly after the open. On the NYSE, advancers outnumbered decliners by nearly 11 to one. —Melloy

9:50 am: Mega-cap tech companies roar back, Amazon all-time high

A handful of big technology companies led the market comeback on Tuesday, with Amazon, Microsoft and Alphabet all rising more than 2% in morning trading. Apple jumped more than 3%. Amazon also hit a new all-time high, the first major company to reclaim its record after the coronavirus-triggered sell-off. The tech-heavy Nasdaq Composite climbed 2.6%, slightly outperforming the S&P 500. —Li

9:35 am: Johnson & Johnson leads the Dow higher

The Dow Jones Industrial Average was led higher by a 3.9% gain in Johnson & Johnson. The drugmaker was the biggest winner in the Dow in early trading on Tuesday. Johnson & Johnson announced earlier it was increasing its dividend. — Fitzgerald 

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

Stocks opened in the green on Tuesday as investors digested the first wave of corporate earnings. The Dow Jones Industrial Average rose 415 points, or 1.75% after the opening bell. The S&P 500 and Nasdaq gained 1.7% and 1.9%, respectively. — Fitzgerald 

9:20 am: Trump says he will issue guidance on reopening economy soon

President Donald Trump said in a press conference Monday that the administration was close to completing a plan to reopen the economy after “clear evidence” that mitigation to combat the coronavirus is working. “Over the weekend, the number of daily new infections remained flat, nationwide flat,” Trump said. “We want to be very, very safe. At the same time, we’ve got to get our country open.” Trump said he would give governors guidance within days about relaxing social-distancing practices, adding he hopes to reopen the country “ahead of schedule.” – Li

9:10 am: Retailers surging before the bell

Stocks in the beaten down retail and apparel sector were making big strides in premarket trading as futures pointed to a strong start for the market on Tuesday. Gap shares rose 6.1%, while Macy’s gained 3.1% and Kohl’s jumped 4.2%. All three stocks are down more than 50% year-to-date. — Pound

9:08 am: Oil slips as soft demand continues to weigh

Oil prices came under pressure on Tuesday as demand concerns continue to weigh. West Texas Intermediate crude, the U.S. benchmark, was down $1.06, or 4.7%, to trade at $21.38 per barrel. On Monday WTI fell 1.5%. International benchmark Brent crude traded 52 cents lower at $31.12 per barrel. The dip came even as OPEC and its oil-producing allies on Sunday announced that beginning May 1 it would cut production by 9.7 million barrels per day – the largest coordinated supply cut in history. Still, investors fear it won’t be enough to counteract the unprecedented demand loss caused by the coronavirus pandemic. – Stevens

9:05 am: Cramer says he’s ‘feeling more confident about the future’

CNBC’s Jim Cramer said on Monday’s “Mad Money” that he is growing increasingly optimistic about the coronavirus crisis. He said that the moves by the Federal Reserve and Congress to support the economy and the possibility of contact-tracing from private companies should help the country recover more quickly. “The worst case scenario’s been taken off the table, and if Apple and Google can do contact tracing that we all embrace … while we continue to roll out more testing, the economy could reopen a lot sooner than we thought even, say, three weeks ago,” Cramer said. — Clifford, Pound

9:01 am: Cruise lines up big in premarket trading

Shares of cruise lines — one of the hardest hit industries from the coronavirus shutdown — rose in premarket trading on Tuesday as the virus outlook appeared to be improving in the U.S. Shares of Norwegian Cruise Line jumped more than 10% in extended trading. Carnival Corp. and Royal Caribbean both rose more than 8%. — Fitzgerald 

8:55 am: Johnson & Johnson jumps 3.5% after dividend boost, earnings report

Johnson & Johnson stock rallied 3.5% in premarket trading after the drugmaker announced in its first-quarter earnings report that it’s raising its dividend. J&J raised its quarterly dividend from 95 cents a share to $1.01, a 6.3% increase, even as it cut its full-year earnings guidance due to the coronavirus outbreak. “The dividend this morning is a real good sign of the strength of the company. We’re in great financial position,” Chief Financial Officer Joseph Wolk told CNBC. The company cut its 2020 adjusted profit forecast to between $7.50 and $7.90 a share. — Franck

8:53 am: Goldman says downturn will be 4 times worse than housing crisis, then an ‘unprecedented’ recovery

The global economic hit likely will be rate four times worse than the financial crisis and the U.S. will see its highest unemployment rate since World War II, according to a Goldman Sachs forecast. With most of the world’s developing economies on a near total shutdown to try to stop the coronavirus spread, Goldman sees a second quarter GDP decline of 11% from a year ago and 35% from the previous quarter on an annualized basis. In the U.S., the headline unemployment rate should hit 15% “and even this understates the severity of the situation” as many workers will be sidelined and not looking for jobs amid an anticipated reopening of the economy. That will accompany a GDP decline in the U.S. of 11% from a year ago and 34% on a quarterly basis, both numbers also considerably worse than anything seen during the financial crisis in 2008. — Cox

8:50 am: JPMorgan just revealed it thinks a lot of people won’t pay their credit card bills

JPMorgan is building its credit reserves in anticipation that people might not be able to pay their bills, especially for credit cards. The bank’s first quarter earnings statement showed its credit reserves increased by $6.8 billion from the prior year, 56% of which was set aside for its consumer card division. “In the first quarter, the underlying results of the company were extremely good, however given the likelihood of a fairly severe recession, it was necessary to build credit reserves of $6.8B, resulting in total credit costs of $8.3B for the quarter,” CEO Jamie Dimon said in the earnings release. Of the $6.8 billion, more than half — or $3.8 billion — is earmarked for the bank’s Card division. In total $4.4 billion is allocated for consumer finance, with the remaining $2.4 billion for the bank’s wholesale business. – Stevens

8:47 am: Wells Fargo reports 89% profit drop for Q1

Wells Fargo reported an 89% drop for its first-quarter profits as the bank set aside billions in credit provisions amid the coronavirus outbreak. Net income for the company dropped 89% to $653 million for the quarter. On a per-share basis, Wells posted earnings of 1 cent. “Our results were impacted by a $3.1 billion reserve build, which reflected the expected impact these unprecedented times could have on our customers,” said CFO John Shrewsberry in a statement. Still, the stock rose more than 1% in the premarket as net interest income came in above expectations. —Imbert

8:45 am: JPMorgan reports big decline in quarterly earnings but posts record markets revenue

JPMorgan posted first-quarter profit well below analysts’ expectations, although the bank’s revenue held up amid the coronavirus pandemic. The bank on Tuesday posted quarterly per share earnings of 78 cents, missing analysts’ $1.84 estimate. The earnings drop was caused by a massive $6.8 billion addition to the bank’s credit reserves. The move signals that management expects a surge in defaults across the company’s lending businesses, from credit cards in its consumer division to energy, real estate and retail sector loans in its commercial operations. Profit of $2.87 billion plunged 69% from a year earlier, driven mostly by the provisions, while revenue proved to be more resilient, slipping 3% from a year earlier to $29.07 billion. JPMorgan’s trading division posted a 32% increase in revenue to a record $7.2 billion. – Hugh Son

8:43 am: IMF slashes growth forecasts, says world will ‘very likely’ experience worst recession since the 1930s

The global economy will this year likely suffer the worst economic pullback since the Great Depression, the International Monetary Fund said Tuesday, as governments worldwide grapple with the Covid-19 pandemic. The Washington-based organization now expects the global economy to contract by 3% in 2020. By contrast, in January it had forecast a global GDP (gross domestic product) expansion of 3.3% for this year. “It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” Gita Gopinath, the IMF’s chief economist, said in the latest World Economic Outlook report. — Amaro

8:34 am: Top analyst says GE is the ‘most expensive value trap we have ever seen’

Top industrials analyst Stephen Tusa wrote on Tuesday that General Electric‘s stock still looks expensive even to traditional value investors looking for a bargain deal. J.P. Morgan’s Tusa argued that while a chart may reveal a steep 41% slide in GE stock over the last three months, the equity isn’t cheap if you consider that free cash flow is down more than 100% and debt levels have increased. “’20/’21 may ultimately be the period of the most significant underperformance based on expectations at the end of ’18 versus what they are now, and even what will ultimately play out versus where they were as recently as March 4, 2020,” he wrote. “For such a poor performing stock, [which] GE has historically been, and remains, the most expensive value trap we’ve seen.” — Franck

8:25 am: Roku says streaming hours nearly doubled in the first quarter, stock jumps

Shares of the television streaming platform soared nearly 15% in premarket trading on Tuesday after the company said its first-quarter streaming hours to be 13.2 billion, a 49% increase year-over-year. Roku said it expects Q1 revenue to be slightly higher than expected in its prior outlook, and still expects strong growth in active accounts and streaming hours as consumers are home amid shelter-in-place orders meant to slow the coronavirus pandemic. Roku also withdrew its full-year guidance given uncertainty about how the pandemic will play out. — Fitzgerald, Graham

8:15 am: Tesla shares rise on upgrade

Shares of the electric automaker rose more than 7% in premarket trading on Tuesday following an upgrade to neutral from  underperform at Credit Suisse. The firm said Tesla’s competitive advantage in the electric vehicle world has increased as the coronavirus disruption forces legacy automakers to make tough decisions about product investment. “It competitively has more edge in the transition to EV as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption,” Credit Suisse research analyst Dan Levy told clients. Credit Suisse hiked its price target to $580 per share from $450 per share, implying Tesla’s stock will fall 12% from its current level of $650.95 per share.  — Fitzgerald 

8:09 am: WHO says ‘not seeing peak yet’ in virus cases

WHO spokeswoman Dr. Margaret Harris said at a briefing in Geneva that 90% of new cases of the coronavirus are coming from the United States and Europe and “we are certainly not seeing the peak yet.” Spain, one of the hardest-hit countries reported its lowest increase in, new cases since March 18, though its death toll rose to 567 from 517 the previous day. There have been more than 1.9 million confirmed cases around the world and at least 120,449 deaths, according to Johns Hopkins University. The U.S. has seen more than 580,000 cases and over 23,000 deaths. — Pound, Reuters

7:41 am: Stock futures rise as hope around coronavirus grows

U.S. stock futures rose amid growing optimism that the coronavirus outbreak is starting to peak. Dow Jones Industrial Average futures were up more than 300 points. S&P 500 and Nasdaq 100 futures also traded higher. President Donald Trump said in a press conference Monday that growth in new coronavirus infections stabilized, providing “clear evidence” that mitigation is working in the country. New York Gov. Andrew Cuomo struck an optimistic tone about the outbreak in New York state, the epicenter of the pandemic in the United States. Investors also turned to corporate earnings as JPMorgan Chase released its first-quarter results. 

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— with reporting from Tom Franck, Pippa Stevens, Hugh Son. 

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