Stock market live updates: Dow drops 500, TX reverses reopen, Gap jumps 30% on Kanye collab

Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues New York, May 27, 2020.

Lucas Jackson | Reuters

This is a live blog. Check back for updates.

8:57 am: Here are Friday’s biggest analyst calls of the day: Amazon, Qualcomm, Snap, Boeing & more

  • SunTrust raised its price target on Amazon to $3,400 from $2,700.
  • Deutsche Bank upgraded eBay to buy from hold.
  • Bernstein downgraded Boeing to market perform from outperform.
  • Rosenblatt initiated DraftKings as buy.
  • Wells Fargo raised its price target on Snap to $28 from $20.
  • Evercore ISI named Qualcomm a top pick.
  • Deutsche Bank raised its price target on Amazon to $3,333 from $2,750.

CNBC PRO Subscribers read more here. – Bloom

8:40 am: Gap jumps 15% after inking deal with Kanye West

Shares of Gap surged more than 15% in premarket trading after the company announced a partnership with musician Kanye West. West tweeted out a promotional photo that had “developed by Yeezy and Gap” written on a bag. He also tweeted about the partnership using the hashtag #WestDayEver. The Yeezy-Gap line will be aimed at young shoppers, according to Reuters. —Pound

8:32 am: Boeing downgraded by Bernstein

Bernstein downgraded shares of Boeing to market perform on Friday based on a lower delivery outlook over the long-term. The firm pointed to uncertainty around when the 737 Max will return to the sky, as well as questions around what the company’s production ramp will look like once operations resume. “To reflect this uncertainty around the demand environment and return timeline, we have reduced our 2020 deliveries forecast from 80 to 40, and assumed a slower delivery and production ramp in 2021 and beyond,” the firm said. Bernstein also cut its full-year 2020 to 2024 free cash flow estimates for the company by around $9.5 billion. Shares of Boeing slid 1% during premarket trading. For the year, the stock is down 46%. – Stevens

8:06 am: Bank stocks fall as Fed imposes restrictions on dividends

On Thursday the Federal Reserve imposed new restrictions on U.S. banks after its annual stress test found that several banks could get uncomfortably close to minimum capital levels in scenarios tied to the coronavirus pandemic. The Fed said in a release that big banks will be required to suspend share buybacks and cap dividend payments at their current level for the third quarter of this year. The regulator also said that it would only allow dividends to be paid based on a formula tied to a bank’s recent earnings. Shares of Wells Fargo slid more than 2% during premarket trading, while JPMorgan and Bank of America were each down more than 1%. Goldman Sachs was more than 3% lower. – Son, Stevens

7:43 am: Nike drops as company reports surprise loss

Shares of Nike slid more than 3% during premarket trading after the company reported a surprise loss for the fourth quarter as sales fell 38% year-over-year. Street analysts had expected the sportswear maker to report a profit of 7 cents per share, but the company instead lost 51 cents per share. By comparison, in the fourth quarter of 2019 the company earned 62 cents per share. Revenue also came up short as stores were forced to close amid the pandemic. Digital sales did jump 75%, but expenses for shipping and returns cut into margins. – Stevens

7:14: Stock futures point to mixed open

U.S. stock index futures pointed to a mixed open for the major averages on the final trading day of a volatile week. The Dow Jones Industrial Average was set to shed 40 points at the open, while the S&P 500 and Nasdaq-100 were set to rise 0.1% and 0.2%, respectively. Bank stocks weighed on the market after the Federal Reserve imposed restrictions on bank dividends following its annual stress test. During Thursday’s session the sector had rallied after the Federal Deposit Insurance Commission officials said they were loosening some restrictions on the Volcker Rule.

Elsewhere in the market, stocks most sensitive to the economy’s reopening, including airlines and cruise lines, moved higher, despite Texas and Florida pausing their reopening efforts as the number of Covid-19 cases in the states jump.

For the week, the S&P and Dow are slated to register their second weekly loss in three weeks, while the Nasdaq Composite is on track to end the week higher. – Stevens 

– With reporting from CNBC’s Hugh Son and Michael Bloom.

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