Dow Futures Bounce 500, Reopen Transactions, United Up 11%


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8:36 a.m .: Tesla obtains two downgrades on the street

Tesla’s shares have jumped more than 100% this year, and Wall Street companies believe that Elon Musk’s carmaker may have gotten ahead of himself. On Friday, Morgan Stanley and Goldman Sachs both downgraded the title, citing among others a stretched assessment.CNBC PRO subscribers can find out more here. – Stevens

8:27 a.m .: Reopening of the rally: United adds 11%, Carnival 12% and Kohl’s climbs 7%

The companies that would benefit the most from a full reopening of the United States gathered the most at the pre-market meeting Friday morning, as the so-called reopening of trade returned on the last day of the week. American and United Airlines increased 9.6% and 9.7% respectively, while cruise lines Carnival Corp. and Norwegian gained 11.2% and 10.6%. Retailers Gap and Kohl’s grew 5.6% and 7.2%; Simon Property Group, one of the largest owners of retail space in the United States, added 5.8%. – Franck

8:18 a.m .: Arizona is hit by a new wave of coronavirus cases

As the trend of nationwide coronavirus cases has subsided, several states are seeing peaks and raising concerns about a second wave of the disease. Arizona, one of the states with the largest increase in cases, recorded 1,412 new cases on Thursday as the state hospital system faces increasing constraints to keep up with the increasing number of cases. In addition to a 4.7% increase in cases, hospitalization has increased 1.6% and jumped 80% since Memorial Day, according to the Covid Tracking project. Hospitals in the region report having 84% capacity for hospital beds and 78% capacity for intensive care. State officials, however, are reluctant to impose new home-support measures. Arizona Governor Doug Ducey said the state still has 2,600 hospital beds and 600 intensive care beds for surge cases. – Coxswain

8:09 am: Bankrupt Hertz Explores Stock Sale, Report Says

Car rental company Hertz has asked a bankruptcy judge to authorize a sale of secondary shares, according to the Wall Street Journal. The plan would allow Hertz to sell just under 250 million more shares. The stock, which had a market capitalization of about $ 293 million at the close on Thursday, jumped 50% in the premarket trade. The stock has been extremely volatile in recent days and is a favorite of retail traders. – Delivered

8 a.m .: the main indices are on the right track for a weekly decline despite Friday’s rally

Although Wall Street appeared ready to recover some of its losses from the start of the week on Friday, the top three indices remained on track to pick up major declines for the week. The S&P 500, Dow Jones and Nasdaq Composite have slipped 6%, 7.3% and 3.2%, respectively, since the close Monday through Thursday. The vast majority of these losses were suffered Thursday, as the increasing number of cases of Covid-19 in the United States and profit taking made the Dow Jones drop by more than 1800 points (or 6.9%) for its worst day since March. The S&P 500 held up a little better on Thursday with a drop of 5.89%. – Franck

7:52 a.m .: VIX falls after reaching 40 for the first time since May 4

Wall Street’s fear indicator – the Cboe volatility index – fell 8.5% in morning trading to 37.31 as stocks attempted to rebound from a brutal sale in the previous session. The VIX jumped nearly 50% on Thursday to close at 40.79, marking the first time the gauge has crossed the 40 threshold since May 4. The gauge tracks the implied 30-day volatility of S&P 500 futures via option prices. – Li

7:30 am: Dow futures bounce 500 points as investors seek to recoup some of Thursday’s decline

The Dow Jones Industrial Average rose more than 500 points on Friday morning as investors sought to curb some of the biggest losses since March in the previous session. Friday morning pop put the Dow Jones on track to gain 2.3% at the opening bell, the S&P 500 is expected to add 2.2% and the Nasdaq-100 to advance 1.9% on the last day of the week. So-called reopening stocks paved the way up in premarketing, Carnival Corp., United Airlines, Kohl’s and Gap outperforming. – Franck

Jeff Cox and Pippa Stevens of CNBC contributed to the report.

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