Stock index futures indicated a higher start for Wall Street on Wednesday as investors welcomed positive results for a candidate for COVID-19 vaccine, moving past a steady increase in cases in the United States United while digesting earnings reports and watching the rise in the United States. -Tensions in China.
Futures sur le Dow Jones Industrial Average YM00,
increased 490 points, or 1.9%, to 26,981, while the S&P 500 future ES00,
increased by 42.15 points, or 1.3%, to 3,225.75. Nasdaq-100 future NQ00,
were up 73.75 points, or 0.7%, to 10,720.
On Tuesday, it gained 556.79 points, or 2.1%, to finish at 26,642.59, while the S&P 500 SPX,
progressing by 42.30 points to finish at 3,197.52, a gain of 1.3%, energy stocks and commodities having rebounded. The Nasdaq COMP composite index,
closed with a gain of 97.73 points, or 0.9%, to settle at 10,488.58, erasing the losses observed earlier in the session on Tuesday.
What are the market drivers
Global stocks were supported after Moderna Inc.
said his coronavirus vaccine candidate has produced a “robust” immune system response in a larger group of people and that the study will move on to a landmark clinical trial in July.
British TV channel ITV has also reported speculation about potentially positive developments for an Oxford vaccine candidate backed by AstraZeneca PLC AZN,
“Investors hope that we are getting closer and closer to finding effective treatments for the coronavirus and the end of the pandemic, which could then pave the way for a big rebound in economic activity with as much funds stimulus already in place by governments and central banks. Said Fawad Razaqzada, market analyst at ThinkMarkets, in a note.
The second quarter earnings release season continues, having started Tuesday with the results of a trio of big banks. Dow component Goldman Sachs Group Inc.
Results exceeded expectations in terms of revenue and profits on Wednesday, as stocks rose more than 4% in premarketing.
Meanwhile, President Donald Trump said on Tuesday that he had signed a bipartisan bill punishing China for its crackdown on security in Hong Kong as well as an executive decree to hold China accountable for “oppressive actions” against the people of the former British colony. Trump also said he had signed an order ending U.S. preferential treatment for Hong Kong. China has said it will impose retaliatory sanctions against US individuals and entities, reports have said.
The economic calendar presents the Empire State Regional Index of the Federal Reserve Bank of New York for July at 8:30 a.m. EST. The United States import price index for June is due at the same time.
The Fed is expected to release industrial production and capacity usage data in June at 9:15 a.m. EST. Economists polled by MarketWatch forecast an average production increase of 4.1%, while usage is expected to increase to 67.7% from 64.8% in May.
Philadelphia Fed Chairman Patrick Harker is scheduled to speak at noon EST while the Fed’s latest report on the Beige Book, an anecdotal compilation of economic activity across the country, should be released at 2:00 p.m. EST.
Which companies are targeted?
- Apple Inc.
Shares rose 1.5% in pre-market trade after winning a legal battle with the European Union in a dispute over an Irish tax bill of 13 billion euros ($ 15 billion).
- Dow component UnitedHealth Group Inc.
stocks rose slightly in pre-market trading after health care company reported second-quarter profit well above expectations, but revenues were insufficient as premium and service revenues were missed
The shares rose more than 13% before the bell after the positive announcement of his vaccine.
How are other markets traded?
In Asia, the Shanghai Composite SHCOMP,
fell 1.6% to end at 3,361.30, while the CSI 300,000 300 index,
fell 1.3%. Nikkei 225 NIK Index of Japan,
lost 1.6%, while the Hang Seng Hong Kong HSI index,
gained 3.69 points to close at 25,481.58.
In Europe, the pan-European SXXP,
The Stoxx 600 Europe index rose 1.7%, while the London FTSE 100 UKX,
was up 1.5%.
The yield of the 10-year Treasury benchmark TMUBMUSD10Y,
up 2.7 basis points to 0.638%. Bond yields and prices are moving in opposite directions. The ICE US Dollar Index DXY,
a measure of the currency against a basket of six main rivals, was 0.4%.
Oil futures increased with the US benchmark CL.1,
up about 1.3%. Gold GC00,
futures contracts fell slightly.