A man wearing a mask walks by the New York Stock Exchange (NYSE) on March 17, 2020 at Wall Street in New York City.
Johannes Eisele | AFP | Getty Images
Stocks came under pressure again as an unprecedented rout in oil prices deepened. The West Texas Intermediate contract for June delivery tumbled below the $15 threshold as demand evaporates. Investors also looked to a wave of corporate earnings to gauge the impact of the coronavirus pandemic. Here’s what’s happening:
This is a live blog. Check back for updates.
11:23 am: Software stocks under pressure
11:16 am: Amazon, Netflix in the red as rally pauses
Shares of Amazon and Netflix fell 4% and 1.7%, respectively, as the tech duo’s strong comeback took a breather. Tuesday’s decline marked the second down day in seven for both companies. Amazon and Netflix rallied 17% and 29%, respectively, in the past month as they benefit from a surge in demand amid nationwide shutdowns during the coronavirus pandemic. — Li
10:54 am: Large publicly traded companies dip into small-business funds
10:51 am: Trump directs Mnuchin, Energy secretary to create plan to support oil, gas industries
President Donald Trump on Tuesday ordered Energy Secretary Dan Brouillette and Treasury Secretary Steven Mnuchin to put together a plan to get funding to the struggling U.S. oil and gas industries as a historic sell-off in crude continued. “I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!” Trump tweeted Tuesday morning.— Li
10:04 am: US Oil Fund, popular ETF trading under ticker ‘USO,’ plunges 20% after brief halt
9:57 am: IBM falls 5% on quarterly revenue decline
Shares of IBM dropped more than 5% in morning trading after the company reported a 3.4% decline in revenue in the first quarter from a year ago amid the spread of coronavirus. It also withdrew full-year guidance given the uncertainty around the pandemic. Three months ago, the company had forecast growth in revenue, earnings on an adjusted basis. — Li
9:54 am: Analysts see stocks like Amazon and Walmart continuing to benefit from the coronavirus pandemic
- Oppenheimer raised its price target on Walmart to $145 from $125.
- Jefferies raised its price target on Amazon to $2,800 from $2,300.
- UBS downgraded Chewy to neutral from buy.
- Susquehanna upgraded Southwest to positive from neutral.
- Guggenheim upgraded O’Reilly Automotive to buy from neutral.
- UBS downgraded Eli Lily to neutral from buy.
- Argus initiated Lyft as buy.
CNBC Pro subscribers can read more here. — Bloom
9:31 am: Dow drops more than 500 points at the open
Stocks opened with steep losses on Tuesday as the ongoing oil collapse weighed on sentiment. The Dow Jones Industrial Average fell more than 500 points, while the S&P 500 dipped 1.7%. The tech-heavy Nasdaq Composite is down 1.2% at the open, lifted by Amazon and Netflix. — Li
8:56 am: Schumer says he believes Senate will pass small business bill Tuesday
Sen. Chuck Schumer said Tuesday that he believes the Senate will pass an additional relief bill for small businesses later in the day. He said he spoke “well past midnight” with House Speaker Nancy Pelosi, White House chief of staff Mark Meadows and Treasury Secretary Steven Mnuchin, and that they “came to an agreement on just about every issue.” The government has been under pressure to replenish a fund allocated to small businesses as part of a Paycheck Protection Program program created by the $2.2 trillion relief bill. Those funds, which totaled $349 billion, ran out last week. – Lauren Hirsch
8:22 am: Dollar index hits highest level since April 8 as investors seek safety
The dollar surged on Monday as investors rushed into safe haven asset amid a plunge in oil prices. The dollar index hit a high of 100.374, its highest level since April 8 when the index hit a high of 100.43. —Fitzgerald, Francolla
8:10 am: U.S.10-year yield falls to lowest level in more than a month
The U.S. 10-year Treasury yield hit a low of 0.567% on Tuesday, hitting its lowest level since March 10. Investors piled into bonds amid growing concerns over the global economy while crude and equity futures tumbled. —Imbert
8:08 am: Kyle Bass warns against oil ETFs
Hayman Capital Management CIO Kyle Bass again warned about exchange traded funds that track oil prices. Bass asked on Twitter if the funds could trade in negative territory if oil futures further along the curve follow the May contract below $0. “If I were a major counterparty after yesterday’s session, I would demand more than 100% collateral,” Bass said. The United States Oil Fund, the largest oil ETF, fell roughly 18% on Tuesday. Bass said Monday on CNBC’s “Closing Bell” that retail investors should stay away from these funds and that he had short positions against some of them. — Pound
7:55 am: Oil futures fall as May contract stays negative
After the futures contract for the front month of West Texas International fell below zero on Monday, contracts for June dropped sharply in early trading on Tuesday. The WTI contract for June fell more than 23% to $15.57 per barrel, while internationaly benchmark crude dropped nearly 19% to $20.77 per barrel. The WTI futures contract for May, which fell into negative territory on Monday, was trading at negative $4 per barrel on Tuesday morning. The contract expires later on Tuesday. —Pound
7:50 am: Oil traders have never seen ‘insane’ market like this before, fear more declines to negative prices
The oil market is facing uncharted territory as the drop-off in demand, caused by the coronavirus pandemic, combined with rapidly filling storage, sent prices plunging into negative territory for the first time in history on Monday. And with only guesswork as to when stay-at-home ordinances might be lifted and when crude demand might pick up, traders warn that oil could continue to trade at extremely depressed levels. “If we have not recovered from COVID in July so that enough driving has come back and storage is full, then the price of crude oil is going to be zero,” RBN Energy’s Rusty Braziel told CNBC. He called Monday’s trading activity “insane,” and said that in his more than 40 years of trading he had “never seen anything like this.” On Monday, West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel, meaning people would effectively pay to have the oil taken off their hands. —Stevens
7:42 am: South Korean won drops on report North Korea’s Kim Jong Un is seriously ill
The South Korean won dropped nearly 1% against the U.S. dollar after unconfirmed reports said North Korean leader Kim Jong Un was seriously ill. CNN reported Tuesday, citing unnamed U.S. officials, that Washington was “monitoring intelligence” that Kim is in “grave danger after a surgery.” Daily NK, a South Korean media outlet, said Kim was receiving treatment after undergoing a cardiovascular procedure on April 12. To be sure, Reuters reported, citing two government sources, that Kim was not gravely ill. —Imbert, Huang
7:40 am: IBM down 5% after company returns to revenue decline in first quarter
IBM fell more than 5% in premarket trading after the company reported first-quarter results that showed a return to revenue declines amid the Covid-19 outbreak. Sales decreased 3.4% on an annualized basis in the first quarter as the company tried to revamp its operations so that employees to work remotely. One quarter ago, the company ended a streak of five consecutive quarters of falling revenues. It also withdrew full-year guidance given the uncertainty the of the coronavirus. —Franck
7:16 am: Stock futures fall as historic oil decline continues
Wall Street headed for another lower open on Tuesday as oil’s historic decline showed no signs of ebbing. Dow Jones Industrial Average futures traded more than 400 points lower, or 1.8%. S&P 500 and Nasdaq 100 futures slid 1.4% and 0.8%, respectively. The May WTI contract was deep in negative territory, but more concerning for oil traders was the decline in later-month contracts. The June oil contract traded 18% lower at $16.67 per barrel. The sharp losses in oil raised more concern about the state of the global economy as the coronavirus pandemic ravages the economic outlook. —Imbert
With reporting from Yun Li, Gina Francolla, Eustance Huang, Michael Bloom and Jesse Pound.
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