U.S. equities rose sharply on Monday to start the first full trading week of the third quarter and second half of 2020. All three major averages were in the green, shrugging off an increase in coronavirus cases in the U.S. and abroad. 

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11:34 am: JPMorgan sees strong denim demand and e-ecommerce growth in the coronavirus era for Levi

JPMorgan reiterated its overweight rating ahead of Levi’s earnings results on Tuesday and said the company should benefit from “increased casualization” as the coronavirus continues. “Investors will be focused on product category trends and how denim has performed through COVID-19 and how mgmt. sees consumers preference for denim changing post-pandemic w/ bottoms >70% of Levi’s sales w/ mgmt noting no ‘zoom effect’ or changing mix in business in China or US as of early April,” analyst Matt Boss said. The firm also said e-commerce was a relatively “small” part the company’s sales but that the company had recently accelerated investments in its digital operations. Shares of the company are up over 3% in midday trading. — Bloom

10:58 am: Amazon trades above $3,000 for the first time 

Shares of e-commerce giant Amazon traded above the $3,000 level for the first time on Monday. The stock rose more than 3%, alongside the broader market. The Jeff Bezos-led juggernaut has rallied more than 60% this year as millions of Americans stocked up on food and household items during the quarantine, while avoiding physical stores. — Fitzgerald 

10:52 am: Netflix to remain content king as consumers continue staying home, analyst says

Canaccord said on Monday that Netflix’s leadership content position is “poised to persist,” analyst Maria Ripps wrote.  “Additionally, we see the potential for upside to estimates as consumers shift discretionary spend away from out-of-home activities such as movie theaters, concerts, and sporting events, and more towards in-home entertainment like subscription video on deman” she said. “Longer term, we expect a continued shift from linear TV consumption to digital over-the-top platforms, and we see Netflix’s extensive library of content creating a strong competitive moat amidst a favorable industry backdrop.” Shares of the streaming giant are up 3.6% in early trading.  —Bloom

10:28 am: ISM nonmanufacturing index jumps more than expected

The Institute for Supply Management’s nonmanufacturing index rose more than expected in June and signaled the first expansion within the sector in three months. The index jumped to 57.1 last month, topping a Dow Jones estimate of 50.1. It was also the biggest month-over-month increase for the index on record. —Imbert

10:14 am: Here are Monday’s biggest analyst calls of the day: Intel, Netflix, Tesla, Zoom & more

  • Goldman Sachs downgraded Intel to sell from neutral.
  • Imperial downgraded Netflix to in line from outperform.
  • Bernstein downgraded Spotify to underperform from market perform.
  • JMP raised its price target on Tesla to $1,500 from $1,050.
  • Citi initiated Harley-Davidson as buy.
  • Baird raised its price target on Zoom to $300 from $230.

Pro Subscribers read more here. — Bloom 

9:40 am: Nasdaq Composite hits all-time intraday high

The Nasdaq Composite hit a fresh all-time intraday high on Monday at the open, its 26th all-time high of 2020. The technology-heavy index is now on pace for its fifth positive session in a row for the first time since its eight-day streak ending June 18. The Nasdaq-100 also hit a new all-time intra-day high at the open. — Fitzgerald, Hayes

9:31 am: Stocks open in the green, Dow up 300 points 

To start off the first full week of the third quarter, stocks opened with sharp gains. On Monday, the Dow Jones Industrial Average jumped 360 points, or 1.4%. The S&P 500 and Nasdaq Composite rose 1.4% and 1.5%, respectively. — Fitzgerald 

9:05 am: Trump says Biden election would ‘disintegrate’ 401(k)s and stocks

President Donald Trump warned Monday morning that Joe Biden’s election could cause American 401(k)s and stocks to “disintegrate and disappear” thanks to the Democrat’s proposed policies. Trump, who lags Biden in national polls by 8.7 percentage points, took to Twitter to berate what he categorized as his opponent’s plan for “massive tax hikes.” To be sure, stocks have continued to march higher even as Biden’s lead increases in the polls. And JPMorgan noted to clients Monday that a Democratic win in November would be neutral to slightly positive for markets. — Franck

8:34 am: Reopening names leads market higher in premarket trading

Shares of companies that would benefit most under a U.S. reopening outpaced the broader market before the opening bell Monday morning. Mall operator Simon Property Group jumped 3% while Kohl’s and Gap rallied 2.5% and 3.5%, respectively. Airlines Delta, Southwest and United all gained about 2.5%. Expedia and TripAdvisor both added 2.5%. — Franck

8:33 am: Tesla climbs following target hike from JMP

JMP Securities raised its price target on Tesla, saying in a note to clients that the company’s better-than-expected second quarter deliveries showed that it was on track to continue its growth. The firm projected Tesla will generate $100 billion in annual revenue by 2025. The automaker’s stock jumped 6% in premarket trading.

Pro subscribers can read more about the note here. —Pound

8:27 am: Intel down following Goldman downgrade

Shares of Intel fell 0.4% in premarket trading after Goldman Sachs downgraded the stock to sell from neutral. The bank said in a note to clients that its channel checks have showed the personal computer market slowing and Intel losing market share in other business lines. —Pound

8:18 am: China stocks pop on editorial praising market’s ‘wealth effect’

Asia stock indexes roared higher Monday morning after the China Securities Journal touted stocks and said investors will feel “the wealth effect of the capital markets.” The state media publication also emphasized the importance of a “healthy” bull market. The China Shanghai indexes were up around 6% and the Nikkei 225 in Japan rose 1.8%. “When looking at markets in the coming 5-10 years, I’m bullish on emerging Asia and believe stocks in that region of the world will outperform everywhere else during that time frame after 10 years of underperformance,” said Peter Boockvar, chief investment officer at the Bleakley Advisory Group. – Cox

8:17 am: Coronavirus cases jump over the weekend

Bullish sentiment on Wall Street is against a backdrop of rising coronavirus cases at home and abroad. The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed over a 24-hour span, a record. The largest spike was seen in the Americas, where nearly 130,000 new cases were confirmed. Florida and Texas reported daily record spikes of 11,445 and 8,258, respectively, on Saturday. – Fitzgerald

8:09 am: Warren Buffett’s Berkshire Hathaway makes its first deal since pandemic

Berkshire Hathaway is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy, marking the conglomerate’s first deal since the coronavirus crisis and its biggest purchase in years. Including the assumption of debt, the deal totals almost $10 billion. With the deal, Dominion is transitioning to a pure-play regulated utility company that focuses on clean energy production from wind, solar and natural gas. Prior to the announcement, Warren Buffett revealed that Berkshire had built up a record $137 billion cash hoard and he was looking to make an “elephant-sized acquisition.” —Li 

8:07 am: Uber officially buys Postmates

Uber agreed to purchase food-delivery service Postmates, the two companies said Monday. Postmates is the fourth-largest U.S. food delivery service by market share. The company has had success in specific urban areas such as Los Angeles and Miami. — Fitzgerald 

7:54 am: Uber jumps on Postmates deal

Shares of ride hailing giant Uber rose 6.5% in premarket trading on Monday following multiple reports that Uber has agreed on a deal to buy food delivery service Postmates in a $2.65 billion stock deal. Earlier this year, Uber was in talks to buy Grubhub; however, the deal never materialized and Grubhub was purchased by Europe’s Just Eat Takeaway.com. —Fitzgerald 

7:45 am: Stock futures jump

U.S. equity futures traded sharply higher on Monday, extending last week’s strong performance to start to second half of the year. Dow futures rose about 345 points, or 1.3% The move implied a higher open by about 400 points. The S&P 500 and Nasdaq-100 futures were 1.1% higher. Stocks whose performance hinges on the reopening of the economy rose in premarket trading. 

Stocks are coming off a strong start to the third quarter and second half of 2020. The Dow Jones Industrial Average and S&P 500 rose 3.3% and 4%, respectively, last week. The Nasdaq advanced 4.6% in the holiday-shortened week. — Fitzgerald 

— with reporting from CNBC’s Jeff Cox and Tom Franck. 

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