Dow jump 500 points, Trump urges for more fiscal aid, airlines rise

Dow notches 500-point gain

Stocks finished Wednesday near session highs amid revived hopes for fiscal stimulus. The Dow gained about 530 points, while the S&P 500 and the Nasdaq Composite gained 1.7% and 1.9%, respectively. — Jesse Pound

Chevron overtakes Exxon as the largest U.S. oil company by market capitalization

Chevron overtook Exxon to become the largest U.S. oil company in terms of market capitalization on Wednesday. Chevron advanced 1.8% during the session, pushing its valuation to $142.2 billion, according to FactSet. Exxon’s current market cap stands at $141.7 billion. – Pippa Stevens

Bond market watching polls,  pricing in big Democratic spending plan 

Treasury yields edged higher Wednesday as stocks soared and polls continue to show a wider gap between former vice president Joe Biden and President Donald Trump. Biden now leads by 9.4 points in the RealClearPolitics average of major polls.

Polls have lately been showing more support for Biden, such as a Quinnipiac poll which showed Biden gaining in some state races including a surprise 11-point lead in the battleground state of Florida. Some traders have said the greater the gap in polls means a contested election is less likely,  a positive for risk markets.

“It’s more about the Democratic sweep,” said John Briggs of NatWest. “This week it’s got a little more mainstream … no small stimulus now means greater chance of sweep which means greater chance of large stimulus later.” 

The 10-year yield edged up to an area of support at 0.78%. Yields, which move opposite price, have been rising on the idea that trillions more in spending could result in a lot more bond issuance and inflation. — Patti Domm 

Final hour of trading: Stocks rally, recovering from Tuesday’s sell-off

The major averages rallied on Wednesday, erasing the steep losses from the previous session, amid hope that Democrats and Republicans could move forward with a smaller stimulus package. The Dow jumped 564 points, or 2%. The S&P 500 gained 1.8% and the Nasdaq Composite advanced 1.9%. —Fred Imbert

Barclays says that Biden victory could now be positive for the market

Maneesh Deshpande, a strategist at Barclays, explained in a note how the market could enjoy further gains if Democratic nominee Joe Biden wins the presidency.

A Biden victory is seen by many on Wall Street as a negative for stocks, given the potential for higher corporate taxes under his leadership.

However, Deshpande pointed out that “the passage of a pandemic stimulus bill is more likely under a Biden administration especially in the Democratic sweep scenario. Further, a close look at the option market pricing indicates that investors are most worried about an ambiguous outcome on election day, so a definitive Biden victory may be viewed even more positively since it would remove the tail risk of a constitutional crisis.” —Fred Imbert

Dan Loeb’s Third Point calls for Disney to halt its dividend to invest more in streaming

Activist investor Dan Loeb is urging Disney to halt its dividend payment to shareholders and invest the capital in streaming content, according to a letter obtained by CNBC’s Scott Wapner. “We believe the company should suspend its $3 billion annual dividend and redirect this capital entirely into content production and acquisitions for Disney’s direct to consumer businesses centered around Disney+,” the letter said. Loeb opened a new position in Disney during the second quarter based in part on the media giant’s decision to enter the streaming market. Shares of Disney ticked up 1.7% in midday trading. — Maggie Fitzgerald 

Stocks on the move in midday trading

A number of stocks were on the move during midday trading on Wednesday, including Netflix, which got a target hike at Pivotal Research, and American Eagle Outfitters, which was upgraded by Barclays. Airlines and cruise line operators traded higher on hopes for additional stimulus measures, while SunPower hit a new 52-week high on the heels of a bullish call from the Street.

Read more about the stocks making headlines here. – Pippa Stevens

Markets at midday: Stocks rally amid hope for piecemeal stimulus deal

The major averages were sharply higher on Wednesday, boosted by hope that Democrats and the White House could reach a smaller coronavirus stimulus deal. The Dow jumped more than 400 points, or 1.5%. The S&P 500 gained 1.3% and the Nasdaq Composite advanced 1.4%. —Fred Imbert

Rally pushes higher

The market stretched higher in the opening hour of trading, with the Dow’s gain surpassing 400 points, or about 1.5%. The average was helped by Boeing, which has risen 3.2%. The S&P 500 was up 1.2%, while the Nasdaq remained 1% higher. — Jesse Pound

Pelosi, Mnuchin speak briefly about airline relief

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on the phone about a potential standalone bill for airlines, according to Pelosi spokesperson Drew Hammill. Pelosi asked Mnuchin to review a previously rejected bill and then continue the conversation, Hammill said on Twitter. — Jesse Pound

Here are Wednesday’s biggest analyst calls of the day: Netflix, Amazon, JetBlue, Foot Locker & more

  • Jefferies upgraded Anheuser-Busch InBev to buy from hold.
  • Gordon Haskett upgraded 3M to hold from underperform.
  • Barclays upgraded American Eagle, Foot Locker, Urban Outfitters and Gap to overweight from equal weight.
  • Pivotal raised its price target on Netflix to $650 from $600.
  • Credit Suisse upgraded SiriusXM to outperform from neutral.
  • JPMorgan upgraded JetBlue to overweight from underweight and United Airlines to overweight from neutral.
  • Guggenheim named Molson Coors a best idea.
  • JPM downgraded Southwest to underweight from neutral.
  • Benchmark raised its price target on Amazon to $3,800 from $3,675.
  • Citi upgraded Philip Morris to buy from neutral.

Pro subscribers can read more here. — Michael Bloom

Stocks rise at the open

U.S. stocks opened higher on Wednesday after a sharp sell-off at the end of the previous session. The Dow Jones Industrial Averaged gained 260 point, or 0.9%. The S&P 500 and Nasdaq Composite rose 0.9% and 1%, respectively. — Jesse Pound

Kudlow says smaller stimulus deal is possible

White House economic advisor Larry Kudlow said on “Squawk Box” that further stimulus negotiations should focus on specific areas, like airlines, schools and the Paycheck Protection Program. Kudlow said that a deal was possible but the probability was low.

“I don’t think the recovery depends on a massive assistance package,” Kudlow said. — Jesse Pound

Momentus to become the latest space stock after $1.2 billion SPAC deal

Space transportation company Momentus is expected to be listed on the Nasdaq early next year under the ticker “MNTS” after being acquired by a SPAC. The company announced it will be acquired by Stable Road Capital’s special purpose acquisition company, which is listed under the ticker symbol “SRAC,” in a deal that values Momentus at $1.2 billion. 

Momentus pitches itself as a “last mile delivery” service for spacecraft, especially targeting the growing market for small satellites. The company’s business centers around its Vigoride transfer vehicle, which helps deliver satellites from a rocket to a specific orbit. Vigoride is especially designed for satellites that hitch a ride on large rockets, an increasingly popular industry practice called ridesharing. 

Stable Road Capital’s acquisition helps raise further funds for Momentus to expand its business, with the company expecting to have $310 million in cash on its books after the transaction. – Michael Sheetz


Sirius XM jumps on Credit Suisse upgrade

Shares of Sirius XM rose 3% in the premarket after a Credit Suisse analyst upgraded them to outperform from neutral, citing an “attractive risk/reward” as the stock has already absorbed most of the negative catalyst surrounding it. The analyst also hiked his price target on Sirius to $7.50 per share from $6.25 per share, implying a 12-month upside of nearly 35% from Tuesday’s close. —Fred Imbert

Cruise stocks rise after JPMorgan note

Cruise stocks gained steam in premarket trading after JPMorgan raised price targets for the industry. Shares of Carnival, Royal Caribbean and Norwegian all rose more than 2% in premarket trading. JPMorgan said in a note that “pent-up demand for leisure travel will be a major theme for 2021.” — Jesse Pound

Molson Coors a ‘best idea’ at Guggenheim

Guggenheim reiterated its buy rating on shares of Molson Coors on Wednesday, while also lifting the stock to its “best idea” list. The firm said it has a favorable risk reward and that seltzer, including Topo Chico, as well as beer maker Yuengling will add 3% to 4% top-line growth. 

“We continue to think the portfolio is well suited to an economic environment where consumers will likely evaluate more closely how they spend money on discretionary purchases such as alcohol,” Guggenheim said.

Shares of Molson Coors advanced 1.6% during premarket trading on Wednesday. – Pippa Stevens

Airlines climb after Trump tweets

Airline stocks moved higher in premarket trading after President Donald Trump said on Twitter that he would approve a smaller relief bill that includes $25 billion for the airline industry. Shares of United, American and Delta all gained more than 3%, clawing back their losses from Tuesday’s session. JetBlue and United were also upgraded to overweight by JPMorgan. — Jesse Pound

Canaccord advises investors to ‘stay the course’ despite volatility

Tony Dwyer, chief market strategist at Canaccord Genuity is advising investors to keep calm even after U.S. stimulus talks fell apart on Tuesday.

We’re “staying the course despite very near-term volatility,” Dwyer said in a note to clients. “We know there is likely to be massive stimulus after the election regardless of which party wins. While we believe the market should remain volatile ahead of the US election, our positive fundamental core thesis driven by excess liquidity and a synchronized global recovery suggests periods of weakness should be used as an opportunity.” —Fred Imbert

Stock futures indicate strong gains after Tuesday’s drop

U.S. stock futures pointed to a solid start to Wednesday’s session as President Donald Trump showed support for several stimulus measures, including aid for airlines and another round of direct payments to Americans. 

Dow Jones Industrial Average futures were up 164 points, or 0.6%. S&P 500 and Nasdaq 100 futures traded higher by 0.5% each. 

In a tweet, Trump said: “The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”

That tweet came after Trump called off stimulus negotiations with the Democrats on Monday, pushing the Dow down more than 300 points. —Fred Imbert