Raphael Stevens

Even though the Dow just had its best day since March 5, Invesco’s Kristina Hooper isn’t sounding the all clear.She warns the broader market is vulnerable to a 10% to 15% correction.”We’re in something of a precarious period … because we’ve gone so long without any kind of significant sell-off for the stock market. In addition, we’re watching the Fed try to maneuver into a very different position,” the firm’s chief global market strategist told CNBC’s “Trading Nation” on Monday. “There’s always a risk when you have a market that has been driven largely by the Fed.”Despite her warning, Hooper is a market bull and plans to take advantage of weakness. If stocks fall sharply, she expects a quick recovery due to the economic recovery’s strength.’I would be a buyer'”I would be a buyer on that pullback as soon as we saw a drop of 8% to 10%,” said Hooper. “This could be a significant opportunity — one that investors have been waiting for.”Hooper expects stocks tied to the economic recovery to outperform growth stocks during the year’s second half.”Keep in mind that this is a strong economic recovery,” she said. “That would favor cyclicals and smaller caps.”However, Hoover also sees benefits to owning growth, particularly Big Tech stocks, which could see near-term pressure as the Fed looks to gradually step away from easy-money policies.Her reasoning: It looks like a large portion of corporate America will permanently adopt stay-at-home hybrid work models for employees after the pandemic. Plus, she predicts increases in cap-ex spending.”Over the longer term, I am very excited about the tech sector,” she added. “There are a lot of strong catalysts there, and I think it really is going to be an outperformer when we look out one to three years.”On Monday, the major indexes staged a strong rebound from last week’s losses. The Dow rallied 586.89 points, or 1.8%. The S&P 500 also got a boost, and it’s now 1% from its all-time high. The tech-heavy Nasdaq also had a positive day.Disclaimer More

Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a House Select Subcommittee on the Coronavirus Crisis hearing in Washington, D.C., U.S., September 23, 2020.Stefani Reynolds | ReutersFederal Reserve Chairman Jerome Powell said in testimony prepared for delivery to Congress this week that the economy is growing but faces continued threats from the coronavirus pandemic.The central bank leader also highlighted rising inflation pressures that he expects to lessen over time.As the economy recovers from the pandemic, he also pledged continued support from policies the Fed put into place in the early days of the Covid-19 threat.”Since we last met, the economy has shown sustained improvement,” Powell said in remarks he will deliver Tuesday to the House Select Subcommittee on the Coronavirus Crisis.”Widespread vaccinations have joined unprecedented monetary and fiscal policy actions in providing strong support to the recovery. Indicators of economic activity and employment have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades,” he added. “Much of this rapid growth reflects the continued bounce back in activity from depressed levels.”Though vaccines have dramatically slowed the pace at which the virus has spread through the nation, he said threats remain.”The pandemic continues to pose risks to the economic outlook,” he said. “Progress on vaccinations has limited the spread of COVID-19 and will likely continue to reduce the effects of the public health crisis on the economy. However, the pace of vaccinations has slowed and new strains of the virus remain a risk.”The Fed has kept its benchmark short-term lending rate anchored near zero and is buying at least $120 billion of bonds each month.But last week’s Federal Open Market Committee meeting indicated that members are looking ahead to when they will start pulling back on policy accommodation.One worry is that inflation is rising at its fastest pace since the financial crisis and might force the Fed into raising interest rates faster than it wants. Powell said price pressures have increased “notably,” but repeated his belief that after special factors ease, inflation will drift back to the Fed’s longer-term 2% target.Become a smarter investor with CNBC Pro.Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.Sign up to start a free trial today. More

Budrul Chukrut | LightRocket | Getty ImagesChina’s central bank on Monday said it had urged several payment firms and banks to clamp down on cryptocurrency speculation, adding to calls from Beijing for restrictions on bitcoin and other digital currencies.The People’s Bank of China said it summoned major lenders including the Industrial and Commercial Bank of China and the Agricultural Bank of China, and Alipay, the mobile payments service run by Alibaba affiliate Ant Group, to tell them they must not provide crypto-related services.The comments reinforce Beijing’s hard line on crypto. In 2017, the Chinese government banned so-called initial coin offerings, a way to issue new digital tokens and raise money. Authorities have also cracked down on businesses involved in crypto operations, such as local exchanges.In May, China said financial institutions and payment companies were banned from providing services related to crypto transactions.Alipay said Monday it would “continue to conduct a comprehensive investigation and strike against virtual currency transactions” and “intensify” its crackdown on crypto.”We reiterate that Alipay does not conduct or participate in any business activity related to virtual currencies and does not provide any assistant technical service or capability,” the company said, according to an English translation of a post on the social media site Weibo.”Alipay will immediately cut its payment service related to any virtual currency transaction it spots. Alipay will firmly remove any merchant involved in virtual currency transactions.”Bitcoin’s price fell to a two-week low Monday on news that China’s clampdown on crypto mining has extended to the southwestern province of Sichuan, a region known for its rich hydropower resources.– CNBC’s Arjun Kharpal contributed to this report. More

In this articleSAFMGSATFANGPPCA worker wearing a protective mask fulfills an online order at a Stew Leonard’s supermarket in Paramus, New Jersey, on Tuesday, May 12, 2020. Stew Leonard Jr. said that the meatpacking plant the company uses is operating at about 70% capacity, and he expects it to rebound to full capacity in about a month, CT Post reported.Angus Mordant | Bloomberg | Getty ImagesCheck out the stocks making moves after the bell on Monday:Sanderson Farms — The chicken producer’s stock rose nearly 10% after a report said the company is exploring a sale. Sanderson is the third-largest chicken producer in the U.S. and has a market value of $3.5 billion.Globalstar — The satellite communications company’s stock fell 1.3% after jumping 17% during regular trading. Earlier in the day, B. Riley began coverage of Globalstar with a buy rating, saying it has “moved through the high-risk portion of its history and is now poised to start generating returns.”Pilgrim’s Pride — Shares of Pilgrim’s Pride rose about 1%. The company on Thursday entered an agreement to purchase the meats and meals business of Ireland’s Kerry Consumer Foods.Diamondback Energy — The oil company rose slightly after the bell as it looks to build on its sharp gains this year. Year to date, Diamondback Energy is up 89.1%, and it ended Monday’s regular session up more than 6%. The moves come as the S&P 500 energy sector is on pace for its best year in three decades. Become a smarter investor with CNBC Pro. Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today More

In this articleGSBDACIRafael Henrique | LightRocket | Getty ImagesCheck out the companies making headlines in midday trading.DoorDash — Shares of DoorDash added 3.55% after the food delivery company announced a partnership with Albertsons on same-day grocery delivery from nearly 2,000 stores. “Leveraging our extensive logistics network and Albertsons’ wide selection of fresh groceries, we are creating a one-stop shop for customers to access any of the essentials they need, delivered to their doorstep within an hour,” Fuad Hannon, head of new verticals at DoorDash, said in a press release.MicroStrategy — Business intelligence firm MicroStrategy’s stock fell 9.7% after the price of bitcoin fell below $32,000 for the first time since June 8. The company, which already held tens of thousands of bitcoins on its balance sheet, bought 13,005 units of the digital currency Monday morning, bringing its total bitcoin holdings to more than 100,000, worth more than $3 billion.Coinbase — Shares of the largest cryptocurrency exchange in the U.S. fell 2.9% following bitcoin’s price decline. Coinbase’s business so far is closely tied to the price of bitcoin and ether, though that may change in the future as it expands.Nvidia — The semiconductor stock shed 1.1% after bitcoin dropped. The company makes chips used in cryptocurrency mining.Raven Industries — Shares of Raven Industries soared 49.3% after the agriculture technology company announced it would be acquired by CNH Industrial for $58.00 per share, or $2.1 billion. The selling price per share was a 33.6% premium to Raven Industries’ four-week volume-weighted average stock price.ZipRecruiter — Shares of the company jumped 11.6% after Goldman Sachs and Evercore ISI began coverage on the stock with buy-equivalent ratings. “We believe the risk/reward in owning ZIP shares into a favorable employer demand environment is positive,” Goldman said. The firm sees shares rising to $28, which is about 32% higher than the stock’s closing price on Friday. Evercore has a $31 price target on the stock.Boston Beer — The beverage stock rose about 1.7% on Monday after Guggenheim named Boston Beer one of its best ideas. The firm said in a note that concerns about slowing retail sales for alcohol were overshadowing strong growth for the company’s Truly brand.Paylocity — Paylocity shares increased 2% after Cowen named the cloud-based payroll and human capital management software company a top idea. The bank called Paylocity an “attractive” growth investment.Nike — Shares of Nike rose 1.3% after Telsey reiterated its rating on the sportswear brand as outperform. The Wall Street firm said Nike likely faces some “near-term pressures” but the positive momentum is continuing. Telsey noted that demand for athletic apparel, footwear and Nike products in the U.S, was strong.Uber — Uber’s stock dipped 3.2% despite being named a top pick for the second half of 2021 by Bank of America. The Wall Street firm said several important catalysts are coming for Uber, including potential IPOs in the sector that could change comps or asset values, competitive launches, and the end of U.S. unemployment stimulus.Figs — Figs shares added 17% after Credit Suisse and KeyBanc initiated coverage of the medical apparel company with outperform and overweight ratings. “FIGS is disrupting the innovation-starved and stagnant $12B US healthcare apparel industry by reengineering the core scrubs category, using cues from performance sportswear brands (like Lululemon) to replace low-fashion, ill-fitting incumbents,” Credit Suisse said in a note.— CNBC’s Tanaya Macheel, Yun Li, Maggie Fitzgerald, Pippa Stevens and Jesse Pound contributed reportingBecome a smarter investor with CNBC Pro. Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today More