Dow up 400, Boeing driving gains, New Jersey pauses restaurant reopenings

The stock market climbed higher in Monday’s volatile trading amid a slew of mixed headlines about the pandemic. The Dow finished the session up more than 500 points at its high, lifted by Boeing shares, which skyrocketed as certification flights for the 737 Max began. A record jump in pending home sales in May helped boost sentiment. Here’s what’s happening:

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The market started the week on a positive note with the Dow jumping about 580 points and finishing the session at its high. Shares of Dow-component Boeing rallied 14.4% after the Federal Aviation Administration began certification flights of the Boeing 737 Max. The S&P 500 finished the day up 1.4%, while the Nasdaq Composite rose 1.2%. With Monday’s strong gains, the S&P 500 is now positive for June, up 0.2%.— Li

The Dow traded more than 400 points higher with less than an hour left in the session, thanks in large part to a 12% surge in Boeing shares. The stock was on fire as the company began its recertification test for the embattled 737 Max jet. The S&P 500 and Nasdaq traded higher by 0.9% and 0.5%, respectively. —Imbert

New Jersey will keep its ban on indoor dining “indefinitely” due to rising virus cases in states that have opened up further, Gov. Phil Murphy said in a tweet. Other areas, including Texas and Los Angeles, have reinstated economic restrictions on businesses such as bars due rising cases. —Pound

Shares of the consumer tech giant rose 2% as tech stocks joined the rally on Monday. Apple was down less than 1% earlier in the session. The Nasdaq has gained 1% for the day, with the S&P climbing 1.3%. The Dow was trading roughly 500 points, or 2%, higher. —Pound

The Federal Reserve launched the second phase of its corporate bond-buying program, this time purchasing debt directly from issuers. While the Fed had been buying bonds on the secondary market, the new move will allow it to move to the primary market. According to an announcement Monday afternoon that confirms previously released details, the Fed will be the sole investor in the issues it purchases. The central bank also will buy syndicated loans. Terms will be issuer-specific, though the Fed will be looking at primarily U.S.-based companies with a rating of at least BBB-/Baa3 as of March 22, the day before the primary and secondary facilities were announced. The Fed thus far has purchased about $8.7 billion in bonds and ETFs. –Cox

Despite continued pressure from advertisers over the company’s approach to posts by President Donald Trump and other controversial content, shares of Facebook have steadily risen during Monday’s session and are now up 2%. The stock opened down more than 3%. —Pound

Almost half of the U.S. adult population is still without a job, underscoring just how far the U.S. labor market has to heal in the wake of the pandemic. The employment-population ratio — the number of employed people as a percentage of the U.S. adult population — plunged to 52.8% in May, meaning 47.2% of Americans are jobless, according to Bureau of Labor Statistics. The share of population employed dropped sharply from a recent high of 61.2% in January and is farther away from a post-war record of 64.7% in 2000. —Li

Data compiled by Ned Davis Research shows the market could have further upside. The firm noted on Monday that, between May 29 and June 19, there were no 52-week lows posted by stocks listed in major U.S. exchanges. “In the 33% of the time new lows have been relatively low, the S&P 500 has surged ahead by a hypothetical 15% per annum,” said Ned Davis, the firm’s founder, in a note. “No bearish leadership is great news.” —Imbert

• Boeing — Boeing surged after announcing it will start recertification flights for the 737 Max.
• Beyond Meat — Shares of Beyond Meat were under pressure following a Barclays downgrade, which cited uncertainty around the restaurant industry and a recovering meat supply chain.
• Nikola — The electric truck maker traded higher after the company started taking preorders for its Badger vehicle.

Click here to read more. —Imbert

Shares of the alternative meat company plunged almost 9% after Barclays downgraded the stock to underweight from overweight, citing uncertainty around the restaurant industry and a recovering meat supply chain. The stock began falling in premarket trading and opened at $133.65 per share. It was most recently trading at roughly $129 per share. —Pound

The major averages were up sharply around midday after strong gains from Boeing while traders shrugged off a record jump in coronavirus cases reported in the U.S. The Dow traded 438 points higher around midday, or 1.7%. The S&P 500 was up 1.1% while the Nasdaq Composite gained 0.8%. —Imbert

The number of companies that have given earnings guidance for the second quarter is down more than 60% from the average over the past five years, according to FactSet. Many companies withdrew or never issued guidance as the coronavirus pandemic slowed the national economy to a crawl. The lack of guidance could lead to larger than normal differences between Wall Street estimates and reported results when earnings season picks up again. —Pound

Florida confirmed 5,409 new coronavirus cases on Sunday, the state’s health department reported Monday, down from 8,424 new cases confirmed on Saturday. However, the percent of total tests that came back positive rose to 13.67%, up from 12.21% reported the previous day. Stocks moved higher following the news, with the Dow now trading more than 400 points higher. —Feuer, Pound

About three stocks rose for every decliner at the New York Stock Exchange as Wall Street tried to shake off a record spike in coronavirus cases over the weekend. FactSet data showed 2,126 NYSE-listed names were higher while 642 stocks declined. —Imbert

Citigroup’s quarterly fund managers survey shows  about 70% believe the next 20% move in stocks will be lower,  not higher.   Sixty-two percent now see Democrat Joe Biden winning the White House, compared to 70% who expected President Donald Trump to be re-elected , back in December. The survey was evenly split on the presidential election in March. The  managers are also holding twice the amount of cash as they had last June, and they are more reluctant to put new money to work in stocks than they were in March. —Domm

Home buyers flooded into the market in May as the economy starts to recover from the coronavirus pandemic. Pending home sales spiked a stunning 44.3% in May compared with April, the National Association of Realtors said Monday. That is the largest one-month jump in the history of the survey, which dates back to 2001. The reading beat expectations of a 15% gain, according to Dow Jones. New coronavirus hot spots and continued spread of the disease could derail the trend some economists say. — Fitzgerald 

Shares of major banks moved higher in early trading as the announcement of dividend plans looms after the bell. Shares of JPMorgan Chase, Citigroup and Wells Fargo all rose more than 1% on Monday morning. Wells Fargo is seen by many on Wall Street as likely to announce a dividend cut following the Federal Reserve’s decision last week to tie dividend limits to earnings. —Pound

The S&P 500 consumer staple sector rose more than 1% on Monday, compared to the S&P 500 slight losses in morning trading. Shares of Procter & Gamble gained 1.7%, while Clorox rose 0.5%. Walgreens also climbed 2.5%. –Li

The Nasdaq Composite slipped 0.6% in the opening minutes of trading as mega-cap tech stocks lost ground. Shares of Facebook, which has seen major advertisers pull their business in recent days, dropped 3%. Amazon’s stock fell 1.8%, while Alphabet and Microsoft were also trading in negative territory. —Pound

The S&5 500 and Nasdaq Composite turned negative shortly after the opening bell. Shares of technology companies slid. A resurgence in coronavirus cases over the weekend could be pressuring equities. — Fitzgerald 

U.S. equities started the week on a strong foot with all three major averages registering gains. The Dow Jones Industrial Average rose 206 points, helped by a 6% jump in Boeing. The S&P 500 rose 0.55% and the Nasdaq jumped 0.25%. — Fitzgerald 

Shares of Beyond Meat sank more than 4% in premarket trading after Barclays downgraded the stock by two notches, to underweight from overweight. CNBC Pro subscribers can read more about the mover here. —Pound

Analysts at Credit Suisse downgraded movie theater chains after rising cases of the coronavirus led some areas to pause or roll back reopening plans and led to further delays in major summer film releases. The firm downgraded AMC Entertainment to underperform from neutral, slashing its price target in half to $2 per share, and Cinemark Holdings to neutral from outperform. Credit Suisse’s new target for Cinemark is $13 per share, down from $20. Shares of AMC dropped more than 7% in premarket trading, while Cinemark fell 3.1%. —Pound

Facebook’s stock fell more than 3% in premarket trading Monday as more companies said they will pause advertising on its platforms. Since Friday, Starbucks, Coca Cola and Guinness-parent Diageo all announced they will halt advertising on social media. The move is seen as part of a broader effort among a growing number of companies to force social media platforms to crack down on hate speech and disinformation on their platforms. For its part, Starbucks said in a press statement that it believes “in bringing communities together, both in person and online, and we stand against hate speech.” — Franck

Gilead Sciences said it would start charging for its coronavirus treatment remdesivir, sending shares up nearly 3% in premarket trading. The Foster City, California-based drugmaker estimated the cost at $3,120 for a typical U.S. patient with commercial insurance. The price for governments in developed countries will be $390 per vial, while private U.S. insurers will pay $520, meaning that Medicare patients will pay less than those with private insurance. The typical treatment is a five-day course entailing six vials, the company said. – Cox

Coronavirus cases rose by 85,632 over the weekend amid a continued surge in hotspots in the South and West. That rise represented a 3.5% increase from Friday to Sunday, according to the Covid Tracking Project. Deaths, which are a lagging indicator, grew by 779 to 119,429, or 0.7%. In response to the increase in cases, a number of governors and local officials have begun reimposing restrictions. Texas has shut down bars and some Florida beaches are closing as well. Florida saw 18,115 new cases over the weekend, a 14.7% surge, though hospitalizations increased just 1.8%. Arizona, another trouble area, saw another 7,360 cases in the two-day period, up 11%, while hospitalizations rose 2.2%. – Cox

Shares of cosmetic company Coty jumped 18% in premarket trading on Monday following news that the company will buy a 20% stake in Kim Kardashian West’s makeup brand. Coty had said earlier this month that it was talking to Kardashian West about a possible collaboration. Coty will pay $200 million for the partial ownership. This is Coty’s second deal with the Kardashian/Jenner family this year, having already taken a 51% stake in Kylie Jenner’s brands. — Fitzgerald 

Shares of Boeing jumped 7.7% as the aerospace giant gets set for re-certification flights of the 737 Max, which has been grounded by regulators for more than a year following two fatal crashes. The flights are scheduled to begin Monday and will gather data for regulators to examine whether the fixes made to the plane are sufficient for it to return to commercial fleets. —Pound

Goldman upgraded shares of Southwest on Monday to buy from sell and raised its 12-month price target to $47 per sahre from $35 per share, sending shares of the airline up nearly 4% in premarket trading. The firm said the airline industry is managing its cash burn better-than-expected and likes Southwest for its domestic focus. “We expect its primarily domestic network and industry-leading balance sheet to drive a relatively faster and stronger recovery from the COVID-19-driven downturn in demand for air travel,” Goldman said in a note. Goldman also said a resurgence in coronavirus cases is not helping the recovery of the ailing industry. — Fitzgerald

Stock futures were higher in morning trading on Monday even as coronavirus cases in the U.S. continued to surge. The Dow Jones Industrial Average futures climbed about 140 points, indicating an opening gain of about 200 points. S&P 500 futures gained 0.3%. Nasdaq-100 futures were slightly lower. The moves in futures market followed a week of sharp losses as the recent spike in virus cases raised concerns about the pace of the economic recovery. The Dow and the S&P 500 were on pace to post their first monthly decline in three. — Li

— with reporting from CNBC’s Jeff Cox, Fred Imbert, Will Feuer, Tom Franck and Leslie Josephs. . 

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