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Futures jump, airline stocks up, S&P down 1% this year

 Futures jump, airline stocks up, S&P down 1% this year

People walk by the New York Stock Exchange (NYSE) on May 18, 2020 in New York City.

Spencer Platt | Getty Images

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7:50 am: Fed to meet with some big talk on the agenda

One of the big events for markets this week will be the two-day Federal Open Market Committee meeting that starts Tuesday. Wall Street is expecting a lot of talk but not much action. Among the main topics for the Fed’s policymaking group will be whether to implement so-called yield curve controls, which would entail buying bonds with the intention of keeping yields at lower levels. In tandem with that, the committee is likely to discuss strengthening its forward guidance, or commitment to keeping short-term rates at low levels until certain economic benchmarks are met. However, markets are not expecting definitive moves on either topic. Fed Chairman Jerome Powell will conduct a virtual news conference Wednesday after the meeting. – Cox

7:47 am: RBC raised its price target on Amazon to a Street high $3,300

RBC upped its price target on Amazon to $3,300 from $2,700 and said it sees the company continuing to benefit from the “shift to e-commerce” in the wake of the coronavirus pandemic. The firm said the e-commerce giant is a “structural winner” after the firm conducted its annual online shopping survey. “AMZN-specific results clearly support the idea that AMZN is likely the best global play off of online retail,” analyst Mark Mahaney said. CNBC PRO subscribers can read more here– Bloom

7:46 am: Reopening trades up big again

Travel stocks – airlines, hotels and cruise lines – looked to extend last week’s rally as demand starts to pick up with coronavirus lockdowns easing. United Airlines was up 10% in premarket trading on Monday, while Delta jumped 8%. Shares of Carnival and Royal Caribbean were up more than 10% each in premarket. Hilton and Marriott both gained more than 3%. Retailers, also tied to the reopening of the economy, were among the biggest gainers with Kohl’s and Nordstrom both popping more than 8% in premarket.— Li

7:28 am: Stock futures jump as market looks to build on recent optimism

U.S. stock index futures were sharply higher Monday, with the Dow Jones Industrial Average set to jump more than 200 points at the open, for a gain of 0.8%. The S&P 500 was slated to open 0.4% higher, while the Nasdaq Composite was poised to begin trading around the flatline.

Monday’s action builds on recent strength in the market as the economy’s reopening as well as better-than-expected economic data have pushed the major averages higher. On Friday, the Nasdaq Composite rose to a new all-time intraday high, becoming the first of the major indexes to wipe out its coronavirus-induced losses. The S&P 500 is now down just 1% for the year and is about 6% below its February record high. The Dow has a little more ground to make up and is sitting roughly 8% below its high. The major averages are coming off their best week since early April.

Some outperformers last week included airline stocks. The NYSE Arca Airline Index is coming off its best week on record, after registering a gain of 36.87%. – Stevens 

– CNBC’s Jeff Cox contributed reporting.

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