The minute of the Friday market
- Global stocks are mixed as markets continue to focus on the worrying rise in coronavirus infections in Europe and the lack of a new fiscal stimulus deal from Washington.
- U.S. stocks will attempt to break a three-day losing streak as lawmakers haggle over a new coronavirus relief bill, but hopes for a pre-election deal fade amid Republican fighting.
- The World Health Organization has said treatment for Gilead Sciences’ coronavirus, remdesivir, has little impact on patients in a trial involving more than 11,000 patients.
- Wall Street futures jump higher ahead of the opening bell after a stronger than expected September retail sales reading and an optimistic timeline for Pfizer’s vaccine development.
U.S. equity futures rose on Friday after Pfizer Inc. (PFE) – Get the report has said he may be ready to seek emergency use approval for his developing coronavirus vaccine as early as next month.
The bullish calendar may help Wall Street break through a three-day losing streak, as many of the concerns that have pressured markets this week, from the rise in coronavirus infections to the fading of hopes of a stimulus deal , continue to dampen investor sentiment.
Stocks were also boosted by a stronger-than-expected September retail sales reading, which rose 1.9% year-over-year compared to the street consensus forecast of a gain of 0.7%.President Donald Trump’s offer to increase the bid amount in a Republican stimulus bill beyond the current level of $ 1.8 trillion gave stocks a late-session boost yesterday , but that rally died out when Senate Leader Mitch McConnell said he would not accept it. to the floor, raising concerns both about the level of spending it would contain and the policies it would support.McConnell’s reluctance, along with the tough negotiating tactics of House Speaker Nancy Pelosi, likely mean a deal won’t be done in the few weeks left until November 3.
With investors now discounting the impact of any short-term fiscal stimulus, the direction of the market will likely depend on the pace of corporate earnings growth in the coming weeks and the outlook for business closings and travel restrictions if the current wave of coronavirus infections in Europe is found in the United States.
Futures linked to the Dow Jones Industrial Average suggest an opening drop of 130 points ahead of the retail sales release, while those linked to the S&P 500 are valued for a 13 point rise. Futures on Nasdaq Composite, meanwhile, forecast a gain of 76 points for the technology-focused benchmark.
Gilead Sciences (BROWN) – Get the report Shares were among the early to note, dropping 1.15% in pre-market after the World Health Organization said its developing treatment for the coronavirus, remdesivir, had little impact on patients. patients in a trial involving more than 11,000 patients.
The US dollar index, which tracks the greenback against a basket of six global currencies, was down 0.15% to 93.717, but still looks on track to record its best weekly gain since the summer amid the rising tide of global risk aversion in financial markets. .
Yields on benchmark 10-year Treasury bills, meanwhile, edged up around 1 or 2 basis points to 0.727%.
European stocks were firmly in the green early in Friday, with the Stoxx 600 rising 1.1% in Frankfurt and the UK FTSE 100 rising 1.25% in London, while Asian stocks ended the session down after last night’s negative close on Wall Street and overhang. rising rates of coronavirus infection in Europe and the lockdowns they have triggered in major economies in the region.
Global oil prices were also lower at the start of European trade, dampened once again by fears that lockdowns would reduce demand in the short term, but still trade within the narrow range that defined the well-supplied market for Several weeks.
WTI contracts for November delivery, the U.S. benchmark, traded 51 cents lower than their Thursday close in New York and changed hands at $ 40.45 a barrel at the start of European trading, while the Brent contracts for December, the global benchmark, were 59 cents lower at $ 42.57. per barrel.