Stock market live updates: Dow futures up 400 points, Powell before Congress, infrastructure bill?

A person walks at the Wall Street subway stop in New York City.

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7:59 am: Fed-backed credit market is giving investors a reason to look past stock market pullback

The credit market, which had seized up during the start of the coronavirus disruption, is now stabilizing thanks to the Federal Reserve’s unprecedented backstop. And it’s clearing a big overhang for stocks as the distortion in the debt market can be dangerous to the economy and the financial system that has relied on free-flowing credit for years. The central bank announced Monday it is broadening its corporate bond buying approach to include single issues on top of exchange-traded funds and high-yield securities. Credit spreads have tightened to nearly pre-coronavirus levels since the Fed stepped in. –Li

7:53 am: North Korea blows up liaison office with South Korea

South Korea said North Korea blew up its inter-Korean liaison office on Tuesday morning, according to NBC. South Korea’s Unification Ministry confirmed to NBC News that the liaison office in the North Korean border town of Kaesong was destroyed “by bombing” on Tuesday afternoon local time. Earlier this month, North Korea threatened to permanently shut the liaison office with South Korea as it condemned its rival for failing to prevent activists from sending anti-North Korean leaflets across the border. — Fitzgerald 

7:42 am: Apple shares rise after Citi hikes price target

A Citi analyst raised his 12-month price on Apple to a Street-high $400 per share from $310 per share, sending the tech giant’s stock up more than 1% in the premarket. The new price target implies an upside of 16.6% from Apple’s close of $342.99 on Monday. Analyst Jim Suva cited five reasons for the higher price target, including upside from Apple’s wearables segment. Suva added he expects Apple to unveil a 5G iPhone later this year. “We do believe that Apple will likely have a strong 5G product offering in time for Christmas 2020,” the analyst wrote. —Imbert

7:38 am: Fed’s Powell heading to Capitol Hill for semiannual testimony

Federal Reserve Chairman Jerome Powell appears before Congress this week to deliver his semiannual report on monetary policy. Powell starts his two-day tour today before the Senate Committee on Banking, Housing and Urban Affairs. Markets generally expect the central bank leader to repeat the tepid economic assessment he delivered following last week’s Federal Open Market Committee meeting, then address a bevy of topics from the legislators. He’ll likely be asked about the potential for the Fed to adopt yield curve control measures, though Dallas Fed President Robert Kaplan on Monday expressed skepticism about that idea. His remarks also come the day after the Fed announced it was firing up its Main Street lending program and expanding its corporate bond purchases from ETFs into individual corporate issues. – Cox

7:37 am: Reopen trades lead market higher

Stocks most sensitive to the economy’s reopening, including retailers, airlines and casinos, led stocks higher during premarket trading on Tuesday. Macy’s and Kohl’s all gained more than 6%, while United Airlines and American Airlines jumped more than 8%. Casino names Wynn Resorts and Las Vegas Sands gained 3% and 2%, respectively. All of these stocks finished Monday’s session lower. – Stevens

7:35 am: Trump administration weighs $1 trillion infrastructure plan: report

The Trump administration is considering pushing for a $1 trillion infrastructure plan to help pull the economy out of the pandemic-induced recession, Bloomberg News reported. The plan would fund provide funds for roads and bridges but also for higher-tech infrastructure, such as 5G and rural internet. —Pound

7:23 am: Futures rise, Dow up 400 points

U.S. equity futures rose on Tuesday after a Bloomberg News report said the Trump administration is preparing a $1 trillion infrastructure bill. The Dow Jones Industrial Average futures rallied 475 points. S&P 500 futures and Nasdaq-100 futures rose more than 1%. 

On Monday, stocks finished in the green after a volatile day of trading. The Dow rose 159 points, having earlier dropped more than 700 points. The S&P 500 and Nasdaq jumped 0.83% and 1.43%, respectively.  Stocks initially fell on concerns about a surge in coronavirus cases in the United States and Beijing. Stocks were helped by the Federal Reserve announcement that it will start buying individual corporate bonds. — Fitzgerald 

— with reporting from CNBC’s Jeff Cox, Yun Li and Fred Imbert. 

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