US stock market has its best day in months

By CNN Business

Updated 5:25 PM ET, Wed September 9, 2020
11 Posts
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11:19 a.m. ET, September 9, 2020

UPS is hiring 100,000 workers for the holidays

From CNN Business' Jordan Valinsky

UPS (UPS) is hiring 100,000 seasonal workers, in line with previous years' announcements.

The company said Wednesday the hirings are a result of the "anticipated annual increase in package volume that will begin in October 2020 and continue through January 2021."

UPS noted that about 35% of seasonal workers are hired full time once the holidays are over.

11:19 a.m. ET, September 9, 2020

Peloton shares continue to cycle uphill

From CNN Business' Jordan Valinsky

Peloton (PTON) shares aren't tiring yet: They're nearly 4% higher following Tuesday's 6% gain.

Yesterday, the at-home fitness company announced it was cutting the price of its original bike by 15% to $1,895. Peloton is also moving upscale with a new, $2,495 model, called the Bike+. It's also overhauling its treadmill line.

Analysts were bullish about Peloton's portfolio expansion, even as gyms across the United States (and world) reopen after temporarily closing because of the pandemic.

JMP Securities (JMP) said in a Wednesday note that it believes Peloton "is in an even better position to redefine the home-fitness category as consumer behavior habits are fundamentally changed due to the pandemic."

Peloton's stock is up 210% for the year.

11:08 a.m. ET, September 9, 2020

And there's +500 📈

From CNN Business' David Goldman

The Dow is now officially 500 points higher. What a day!

10:38 a.m. ET, September 9, 2020

Dow surges nearly 500 points

From CNN Business' David Goldman

The three-day rout on Wall Street looks like it's going to end (finally) Wednesday with a big bang.

The Dow (INDU) surged as many as 480 points, and the S&P 500 (SPX) is up 2%. The Nasdaq (COMP), which has gotten the worst of investors' scorn and entered correction territory Tuesday, bounced back in a big way -- it's up 2.6%.

This is a good sign. Corrections happen, especially when the market gets super expensive and over-inflated as it had in the past few weeks.

But a big bounce-back suggests greed hasn't yet dried up on Wall Street. (CNN Business' Fear and Greed Index is still decidedly in "greed" mode.)

Investors are hoping the bloodbath was just a momentary glitch in the trend that has been continuing for half a year now -- huge gains and unending enthusiasm in the stock market.

9:32 a.m. ET, September 9, 2020

US stocks bounce back

From CNN Business' Anneken Tappe

US stocks opened sharply higher on Wednesday, rebounding from the prior session’s dramatic selloff during which the Nasdaq Composite fell into correction territory (defined as a 10% drop from the peak).

Tuesday’s selloff was just the latest day of tech stocks losing in value following the summer rally. That said, there is no particular driver for the rebound today. 

  • The Dow rose 0.9%, or 256 points.
  • The S&P 500 climbed 1.3%.
  • The Nasdaq opened 2% higher.
8:54 a.m. ET, September 9, 2020

Slack's stock tanks as billing growth slows

From CNN Business' Paul R. La Monica

More people are working from home, which should be good news for Slack as employees rely on it even more to stay connected with their co-workers. But Slack (WORK) reported disappointing billings growth after the closing bell Tuesday.

That could be a sign that sales growth will slow -- and shares plunged more than 15% in early trading Wednesday.

Slack did post solid gains in overall revenue and paid customers. But the numbers weren't good enough to satisfy Wall Street, given that Slack stock had already surged 30% in 2020 on expectations that it would be one of the biggest winners in the stay-at-home coronavirus economy.

Slack CFO Allen Shim acknowledged on a conference call with analysts Tuesday afternoon that it wound up offering some customers credits, installment billing plans and other concessions because of disruptions. He added that growth flattened for many of its customers in the quarter.

But CEO Stewart Butterfield also dismissed concerns that Microsoft (MSFT), which has invested heavily in its own collaborative software tool named Teams, is taking business from Slack.

Butterfield said Slack has "won over and over again" with customers using Microsoft's Office 365. 

"While no doubt it causes some friction and it's another thing for us to overcome, it doesn't put any kind of ceiling or limiter on our growth," Butterfield added.

7:56 a.m. ET, September 9, 2020

Marriott is laying off about 17% of its corporate workforce

From CNN Business' Jordan Valinsky

Marriott International (MAR) is laying off 673 employees at its corporate headquarters in Maryland, a sign that the pandemic-stricken travel industry isn't close to recovering.

The Maryland-based hotel chain announced the layoffs in a Work Adjustment and Retraining Notice. Marriott employs about 4,000 people at its Bethesda headquarters.

Marriott has furloughed thousands of hotel employees as demand dried up. It's made no secret how badly Covid-19 is destroying business, saying in May that the pandemic is "having a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis, combined."

The stock is down 30% for the year.

7:28 a.m. ET, September 9, 2020

LVMH says $16.2 billion takeover of Tiffany can't go ahead

From CNN Business' Michelle Toh

LVMH (LVMHF) says it can't complete its planned acquisition of Tiffany (TIF), which would have been the biggest luxury goods deal in history.

The French conglomerate announced Wednesday that as things stand, it would not "be able to complete" the $16.2 billion deal — which was announced last November — because of "a succession of events which undermine the acquisition."

Those events included a recent letter from the French government calling on the company to defer its takeover of Tiffany until January 2021 in response to the US threat of taxes on French products, LVMH said in a statement.

Tiffany shares slumped nearly 9% in premarket trading.

Read more here.

6:34 a.m. ET, September 9, 2020

Tesla shares poised to rebound after suffering its worst day ever

From CNN Business' Chris Isidore

Tesla (TSLA), one of the best performing US stocks this year, suffered its worst trading day since it went public 10 years ago.

Shares of Tesla lost 21% of their value Tuesday after Standard & Poor's declined to add it to its index of 500 major US stocks. Being added to the index would have required portfolio managers who mirror the index to buy additional shares. Part of the rise in Tesla shares in recent months was on anticipation that would happen.

However, it's poised to recoup some of those losses: Shares are up nearly 7% in premarket trading.

Read more here.