Stock market live updates: Pullback continues, stocks down 2%, second wave?

9:30 am: Stocks tank, Dow drops more than 600 points

Stocks started the week sharply lower as the recent pullback continued. The Dow Jones Industrial Average fell 645 points for a loss of 2.5%. The S&P 500 was down 2%, while the Nasdaq Composite shed 1.5%. The major averages are all coming off their worst week since March 20 as fears over a second wave of coronavirus cases hit the market. Stocks most sensitive to the economy’s reopening, including airlines and cruise line operators, led the declines. – Stevens

9:29 am: New York manufacturing outlook best since financial crisis

Manufacturing in the New York area has seen a surprising rebound in June as confidence in the future hit its highest level in nearly 11 years. The New York Fed’s Empire State Manufacturing Index posted a reading of -0.2 for the month. While that represents a relatively standstill in present conditions, it was far better than the -35 that economists surveyed by Dow Jones had expected. At the same time, the index for future expectations rose to 56.5, its highest level since October 2009. Big gains also came in new orders, shipments and prices paid. – Cox

9:21 am: Here are the biggest analyst calls of the day: Starbucks, Shopify, Intel, airlines & more

  • KeyBanc upgraded Intel to overweight from sector weight.
  • Atlantic Equities initiated Starbucks as overweight.
  • Piper Sandler upgraded Shopify to overweight from neutral.
  • B. Riley FBR upgraded Six Flags to buy from hold.
  • Berenberg upgraded Mondelez to buy from hold.
  • Citi opened a 30-day negative catalyst watch on American Airlines & a positive catalyst watch on United Airlines.
  • Loop Capital upgraded RH to buy from hold.

CNBC PRO subscribers can read more here. – Bloom

8:34 am: UBS strategist says stocks have more room to run higher

Stocks have been under pressure in recent days, but UBS’ Mark Haefele thinks more gains lie ahead. We are still confident that with positive medical developments and supportive stimulus measures, economies will be able to reopen sustainably without a second wave of infection overwhelming healthcare systems,” Haefele, CIO for UBS Global Wealth Management, said in a note. “We think there is still room for equities to move higher in both our central and upside scenarios.” Haefele added, however, that Thursday’s sell-off highlights “the importance of a selective approach to stocks after the recent sharp rally.” —Imbert

8:19 am: Fears of a second covid wave still spooking markets

While coronavirus cases have moderated across the U.S. as a whole, flareups in states that relaxed restrictions early are causing concern of a second wave. Total positives rose 1% on Sunday while deaths rose 0.3% to 109,657, according to the Covid Tracking Project. While those numbers reflect a continued taming of trends from when the pandemic first hit, some states are seeing significant jumps. Alabama saw a 4.1% rise in total cases on Sunday, Arizona rose 3.6% and Tennessee rose 3%. Those gains were being largely offset by sharp declines in the pace of growth among Northeast states, but the threat of a rise in cases still spooked markets. Wall Street was headed for another rough opening Monday coming off a sharp drop last week. – Cox

7:50 am: Retailers tick lower on second wave fears

Shares of brick and mortar retailers fell in premarket trading on Monday as worries about a spike in virus cases kept investors away from the reopening trade. Shares of Kohl’s ticked 6.5% lower and TJX Companies fell nearly 3%. Nordstrom lost 4.7%. Macy’s fell 5.5% and Best Buy shed more than 2% lower. Home Depot and Lowe’s fell 2.4% and 1.7%, respectively.— Fitzgerald 

7:47 am: Shopify rises after Walmart partnership, upgrade

Shares of e-commerce company Shopify gained 3% in premarket trading after Walmart announced a partnership between the two companies that will allow Shopify’s third-party sellers to list their products on Walmart’s website. Piper Sandler also upgraded the stock to overweight from neutral, saying in a note that Shopify’s revenues could quadruple by 2025. —Pound

7:45 am: Moderna shares jump on report Israel to buy coronavirus vaccine

A report from Israeli news outlet YNET said the country was in talks to buy Moderna’s coronavirus vaccine, which is entering the final stage of testing. The report sent Moderna shares more than 5% higher in premarket trading. —Imbert

7:42 am: Morgan Stanley raises S&P forecast, says recovery will be V-shaped

Morgan Stanley’s U.S. equity strategist Michael Wilson raised his S&P 500 target while reiterating his belief that the recovery will be V-shaped based on positive economic data and policy action from governments and central banks. “We remain firmly in the camp that the economy is likely to experience a V-shaped recovery, which is exactly what the equity market is foreshadowing,” he wrote in a note to clients Sunday. Wilson raised his 12-month S&P 500 bull, base and bear targets to 3,700, 3,350 and 2,900, respectively. The S&P closed at 3,041 on Friday. – Stevens

7:39 am: Cruise lines fall as fears of a second coronavirus wave increase

Cruise line stocks took a hit on Monday as investors dumped the recently strong-performing group amid worries of a second coronavirus wave slowing down global travel. Carnival Corp. and Royal Caribbean both fell around 8% in the premarket. Norwegian Cruise Line slid 10.8%. Cruise operators have been on fire this quarter as traders be the worst of the coronavirus pandemic had passed. Quarter to date, Carnival is up 51.7% while Norwegian Cruise Line and Royal Caribbean are both up at least 87% in that time period. — Imbert

7:36 am: Coronavirus returns to Beijing

Officials in China’s capital city have reported 79 new cases of the coronavirus over the past four days after reporting no new cases for nearly two months. Parts of Beijing are now under lockdown to help control the spread of the virus, and the city has suspended sporting events and tourism. The outbreak has been linked to the Xinfadi market in the southwest part of the city. —Pound, Reuters

7:35 am: US airline stocks sink as virus fears threaten reopening trade

Shares of major U.S. airline companies fell across the board in premarket trading Monday morning as inflamed fears about a second wave of coronavirus cases continued to threaten the market’s recent optimism about economic reopening. Delta, United and Alaska Air fell 7%, 8.7% and 6.8%, respectively, underperforming S&P 500 futures that pointed to a slide of 2.1% for the broader market when regular trading resumes. JetBlue Airways and Southwest Airlines dropped 7.3% and 6.1%. — Franck

7:20 am: Dow futures drop more than 600 points

U.S. equities futures fell on Monday as investors ditched riskier assets over fears about a possible second wave of the coronavirus. Dow Jones Industrial Average futures fell about 600 points, or 2.4%. S&P 500 futures lost 2%. Nasdaq-100 futures declined 1.4%. Stocks that hinge on the economy reopening — airlines, cruise lines and retailers — were the weakest before the bell on Monday. 

Stocks are coming off of their worst week since March. Equities reversed course last week after chugging higher for three straight weeks. The Dow and S&P 500 lost 5.5% and 4.7% last week, respectively, while the Nasdaq shed 2.3%. — Fitzgerald 

— with reporting from CNBC’s Fred Imbert, Pippa Stevens, Jeff Cox and Michael Bloom.

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