Dow up 200, Spotify pops 6%, oil above $40

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

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9:39 am: Here are Friday’s biggest analyst calls of the day: Apple, Tesla, Slack, Oracle, Ulta & more

  • Jefferies raised its price target on Apple to $405 from $370.
  • Goldman Sachs downgraded Slack to sell from neutral.
  • Barclays upgraded Ulta to overweight from equal weight.
  • Wells Fargo raised its price target on Disney to $118 from $107.
  • SunTrust upgraded Occidental Petroleum to buy from hold.
  • Rosenblatt raised its price target on Spotify to $275 from $130.
  • Argus downgraded Oracle to hold from buy.
  • JPMorgan raised its price target on Tesla to $275 from $240.

CNBC PRO subscribers can read more here. – Bloom

9:30 am: Stocks rally, Dow up more than 300 points

Stocks rallied out of the gate on Friday as the major averages looked to end the week on a high note. The Dow rose 325 points for a gain of 1.25%. The S&P 500 was up 1.17%, while the Nasdaq Composite advanced 1%. Tech stocks have led markets higher this week, and the major averages are on track to post their fourth week of gains in five. – Stevens

8:39 am: Apple has a new biggest bull who sees shares rising 15%

Apple has a new biggest fan on Wall Street who thinks its stock is worth 15% more than where it closed Thursday afternoon. Jefferies analyst Kyle McNealy sees the iPhone maker’s equity rallying from around $351 a share to $405 a share over the next 12 months. McNealy’s optimism stems from his expectations for Apple’s 5G phone rollout this fall. The Jefferies target is the most optimistic of the major banks on Wall Street, eclipsing others like Citigroup, which earlier this week raised its target on Apple to $400.

CNBC PRO subscribers can read more here. — Franck

8:31 am: Oil prices jump, on track for seventh positive week in eight

Oil moved higher on Friday, boosted by pledges from OPEC+ nations to stick to the group’s record supply cut, which is equivalent to about 10% of pre-coronavirus worldwide demand. “It’s clear, there is enthusiasm in the market that oil supply is still under control,” said Paola Rodriguez Masiu, senior oil market analyst at Rystad Energy. “The compliance level has already been higher than most of the market participants expected and it seems that a better level is achievable,” she added. West Texas Intermediate, the U.S. oil benchmark, gained $1.25, or 3.22%, to trade at $40.09 per barrel. The contract is on track for its seventh week of gains in the last eight weeks. International benchmark Brent crude traded 2.5% higher at $42.55 per barrel. – Stevens

8:02 am: Shares of Spotify tick higher after Rosenblatt Securities hikes its price target to Street high

Shares of Spotify ticked nearly 3% higher in premarket trading on Friday after Rosenblatt Securities assigned the streaming company’s stock a $275 per share price target, the highest on Wall Street. The firm’s prior target was $190 per share. Rosenblatt said Spotify’s “big name” exclusive podcasts like “The Ringer,” “The Joe Rogan Experience,” and Kim Kardashian West’s “The Innocence Project” are emerging as a new monetizing channel for existing media company content libraries, which likely widens the slate of quality podcasts. “We not only see attractive monetization potential from these exclusives, we envision future leverage to premium subscription pricing and label negotiations,” Rosenblatt internet and media analyst Mark Zgutowicz said in a note to clients on Friday. Rosenblatt has a buy rating on Spotify. Rosenblatt’s price target implies a nearly 20% jump from Spotify’s current price of $232.50. – Fitzgerald 

8:00 am: ‘Gold rally to continue,’ says Goldman as firm raises target

Goldman Sachs raised its target on gold in a note titled “gold rally to continue on debasement fears and weaker dollar.” The firm upped its 3-month target on the precious metal to $1,800 per ounce from $1,600, its 6-month target to $1,900 from $1,650 and its 12-month target to $2,000 from $1,800. “Gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates,” the firm’s strategists led by Mikhail Sprogis wrote in a note to clients Friday. Gold gained 0.7% on Friday to trade at $1,743 per ounce. – Stevens

7:48 am: China reportedly to step up U.S. farm goods buying

China plans to increase purchases of U.S. agriculture products to comply with the phase one trade deal the two countries reached in January, Bloomberg News reported, citing two people familiar with the matter. The Chinese government is set to meet the trade agreement with increased buying of soybeans, corn and ethanol after the coronavirus pandemic disrupted the planned purchases, Bloomberg News said. The market cheered the news as tensions between the two nations had risen recently due to the handling of the virus. President Donald Trump had also threatened to walk away from the trade deal, saying Thursday that “a complete decoupling from China” remained an option. –Li

7:44 am: Reopening trades higher in premarket trading

Shares of companies whose success hinges on the reopening of the economy — airlines, cruiselines and retailers — ticked higher on Friday before the opening bell. Shares of Delta Air Lines rose 1.8% and American Airlines jumped 2.5% in premarket trading. United Airlines and Southwest rose 2.3% and 1.3%, respectively. Cruise operators also rose with Carnival up 1.8% in premarket trading. Norwegian Cruise Line and Royal Caribbean rose 3% and 2.3%, respectively. Retailers also got a boost on Friday. Macy’s rose 2.3% and Nordstrom jumped 2.6%. Gap was up 1.5% in the premarket and Kohl’s ticked 2.5% higher. – Fitzgerald

7:43 am: Penn says it’s resumed operations at more than 70% of properties

Penn National Gaming said in a press release Friday that 30 of its 41 gaming and racing properties have resumed normal operations, representing more than 70% of the company’s regional gaming portfolio. The racetrack and casino operator said the latest openings will occur Friday at its four Ohio properties and in Pennsylvania at the Hollywood Casino at Penn National Race Course. Shares gained 3.4% in premarket trading. — Franck

7:27 am: Stocks set to rally at the open

U.S. stock index futures pointed to gains across the board at the opening bell on Friday. The Dow Jones Industrial Average was set to jump 183 points for a gain of 0.7%. The S&P 500 was poised to rally 0.6%, with the Nasdaq Composite up 0.6%. The major averages are on track to finish the week higher for their fourth weekly gain in the last five weeks. States continuing to reopen their economies have boosted stocks, although risks, namely a rising number of Covid-19 cases in states that have begun to ease restrictions, remain in the market. – Stevens

CNBC’s Yun Li and Michael Bloom contributed reporting.

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