Stock market live updates: Futures jump, wild ride thanks to Navarro

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Shares of American Airlines fell 5.4% in premarket trading on Tuesday, after losing 6.7% in the previous session. The sharp declines came as the airline company moved to raise about $2 billion through convertible and secondary stock offerings to improve its liquidity as the company grapples with the coronavirus disruptions. The company on Tuesday priced an offering of 74.1 million shares at $13.50 a share and an offering of $1 billion of convertible bonds that mature in 2025 at 6.50%. Shares of American Airlines are down nearly 48% this year. –Li 

Shares of Tesla are trading at more than $1,000 per share before the bell. Morgan Stanley’s Adam Jonas said in a new note that investors may be forgetting the difficulties and risks of the electric car company’s business that differentiates it from tech giants, which could lead to a big pullback.

CNBC PRO subscribers can read more here. —Pound

Following a volatile overnight session, oil prices moved higher during morning trading after reassurance from the White House that the U.S.-China trade deal remains intact. West Texas Intermediate, the U.S. oil benchmark, rose 79 cents, or 1.9%, to trade at $41.52 per barrel. Earlier in the session WTI touched a low of $39.90. International benchmark Brent crude gained 83 cents to trade at $43.91 per barrel, after hitting a session low of $42.21. “Prices rose further on the relief that the US-China trade status remained intact and on indications that despite Covid-19 infections increasing, road fuel demand and global traffic are still standing strong,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets. On Monday, WTI settled above the key $40 mark for the first time since March. – Stevens

Retail stocks moved higher on Tuesday morning as futures pointed to a strong open for the broader market. Kohl’s gained 2.3% in premarket trading, while discount retailer Five Below climbed 2.1%. Simon Property Group, the country’s largest mall owner, rose 2.7%, and apparel giant Nike moved 2.2% higher. —Pound

Shares of JPMorgan Chase, Citigroup, Wells Fargo and Bank of America all rose as the market was set to add to Monday’s solid gains. All four of those stocks gained more than 2% in premarket trading. Banks have caught a bid over the past month amid mounting bets on the global economy reopening, which would theoretically increase consumer spending and help these companies. —Imbert

White House trade advisor Peter Navarro spooked the markets last night by casting doubt on the China trade deal.

Navarro’s original comment came during a Fox News interview, when the trade advisor listed the complaints the White House has with Beijing over its handling of the Covid-19 outbreak. He was then asked about the trade deal: “Given everything that’s happened and all the things you just listed, is that over?” “It’s over,” Navarro replied.

U.S. futures sank after the comments. The trade advisor then walked back his comment, saying his words were taken “wildly out of context” and reassured that the deal is, in fact, not over. President Donald Trump also weighed in following Navarro’s Monday interview, writing on Twitter that “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!” Futures then recovered.

The about-face from the White House and whipsaw in equity futures highlight the fragility of the accord struck between the globe’s two largest economies earlier this year. Tensions have been rising between the U.S. and China in recent months over the origins of the coronavirus pandemic and Beijing’s influence over Hong Kong. — Franck

Shares of Peloton jumped more than 2% during Tuesday’s premarket trading after Cowen raised its target on the stock to a Street high of $70, which is roughly 32% above where shares closed on Monday. The firm, which has an outperform rating on the stock, previously had a $54 target.  ”PTON remains uniquely well positioned via its vertically integrated model comprising … the pandemic has created a virtuous cycle driving both increased hardware demand as well as a surge in engagement and lower monthly churn levels (0.46% in F3Q),” analyst John Blackledge wrote in a note to clients. Shares of the exercise equipment maker have gained 86% this year. – Stevens

Apple shares rose more than 1% in the premarket following a slew of announcements from the tech giant at its annual WorldWide Developers Conference. The tech giant revealed iOS 14, a new operating system for its flagship iPhones and MacOS Big Sur, a new OS for its computers. Apple also said it will start using its own chips for its Mac computers, ditching Intel. Apple’s premarket gains put the stock on track to hit an all-time high at the open. — Imbert

U.S. stock index futures pointed to sharp gains at the open following comments from the White House that the U.S.-China trade deal remains in place. The Dow Jones Industrial Average was set to jump 268 points at the open for a gain of 1%. Futures on the S&P 500 were up 0.9%, while Nasdaq-100 futures gained 0.7%. 

Earlier Dow futures had plunged about 400 points after White House trade adviser Peter Navarro said that the deal was “over.” However, futures rebounded after he clarified his comments, saying that they were taken “wildly out of context.” President Donald Trump also weighed in on Twitter, saying the deal is “fully intact.”  

Stocks rose during Monday’s session as the market looked toward the economy’s reopening, although a rising number of Covid-19 cases in the U.S. and abroad capped the upside. The Nasdaq was the relative outperformer, and the tech-heavy index closed at a new record high. – Stevens 

– CNBC’s Jesse Pound and Yun Li contributed reporting.

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