June gains continue, airlines jumping again, oil 3-month high

The New York Stock Exchange (NYSE) stands in lower Manhattan on May 18, 2020 in New York City. Markets surged today as promising details of a potential COVID-19 vaccine were released and more European countries gradually re-opened after months of lockdown.

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This is a live blog. Please check back for updates. 

8:45 am: Large IPOs pricing this week after market rebound

There are multiple IPOs expected to raise roughly $1 billion or more this week as the market rebound and lower volatility has made companies and investors more confident in going public. The last U.S. IPO to raise more than $1 billion was GFL Environmental, which debuted on March 3, according to the Nasdaq’s website.Warner Music Group, whose offering will be priced tonight, will trade on the Nasdaq under the ticker WMG, and has an estimated pricing range of $23 to $26 per share, according to securities filings. ZoomInfo will also trade on the Nasdaq, under the symbol NI. The expected pricing range is $19 to $20 per share, according to securities filings, and it is slated to begin trading on Thursday. —Pound

8:41 am: Microsoft jumps after Wells Fargo says market cap can top $2 trillion

Shares of Microsoft jumped nearly 1% in premarket trading on Tuesday after Wells Fargo said it believes Microsoft’s market capitalization can top $2 trillion in the next few years due to strength in its cloud business. The Wall Street firm — which has an overweight rating on the Satya Nadella technology giant — said the coronavirus “has created a Zeitgeist moment for the cloud as a whole,” and Microsoft’s Azure is poised to benefit. With growth in cloud revenue, Microsoft’s market capitalization can reach $2.2 trillion by 2023, the firm said. Wells Fargo has an overweight rating on the stock and hiked hiked its 12-month price target on Microsoft to $250 per share from $205 per share. —Fitzgerald

8:09 am: U.S. equities see back-to-back weekly inflows, BofA says

Bank of America said in a note that its clients were net buyers of stocks for a second week in a row as investors plowed money into ETFs. Overall, clients increased their exposure to stocks by $60 million in assets as ETFs had an inflow of $1.044 billion, offsetting the sale of single-stock holdings. —Imbert, Bloom

8:02 am: Reopening stocks head higher

7:45 am: Oil hits highest level in nearly three months

Oil moved higher on Tuesday, ahead of the meeting between OPEC and its oil-producing allies, where the current production cut policy will be discussed. West Texas Intermediate, the U.S. oil benchmark, rose 3% to hit $36.51 per barrel, its highest level since March 6. Meanwhile international benchmark Brent crude rose to $39.55, a level not seen since March 11. “OPEC+ cuts are clearly working with solid help from recovering crude oil demand, especially in Asia. An extension of the current cut levels will definitely be a further boost for the market. Not only will the market rebalance, but stock builds of oil will also feel some relief. Prices rise on this prospect and are set for higher levels if the cuts are indeed extended,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “Bottom line is that the market is on a recovery path. If OPEC+ extends the high-level oil production cuts, that recovery will speed up and prices won’t lag behind.” —Stevens

7:47 am: Slack jumps after Cowen rates stock as outperform

Shares of Slack rose 3.8% in premarket trading after Cowen initiated the stock with an outperform rating and a $45 price target. The price target is 21% above where trading closed on Monday. The firm said in a note that the shift to working from home during the pandemic has expanded the potential market for Slack and that Wall Street is overly worried about competition from Microsoft Teams. Slack is set to report its fiscal first quarter results after the bell on Thursday.  —Pound

7:35 am: Zoom moving higher ahead of earnings

Shares of Zoom Video gained 3% during Tuesday’s premarket trading, ahead of the company’s first quarter earnings results, which will be released after the market closes. According to estimates from FactSet, analysts are expecting the company to earn 9 cents per share, on $202.3 million in revenue. The stock gained 13.75% on Monday, hitting a new all-time high, and breaking above $200 for the first time. The video-conferencing company has seen its user base jump amid the coronavirus pandemic, and shares have gained 200% this year. –Stevens

7:34 am: Dow futures gain more than 100 points as Wall Street focuses on economy reopening

Stock futures rose on Tuesday morning as traders focused on the economic reopening and looked past the civil unrest in the U.S. Stocks that would benefit from the economic restart — such as airlines, cruise lines, some retailers and banks — led the early gains. The market has largely ignored the unrest across the U.S. However, that could change if traders believe protest could continue through the summer, potentially hurting the reopening and dampening consumer confidence. —Imbert

—With reporting from Maggie Fitzgerald. 

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