Dow flirts with 27,000 levels, erasing S&P 500 vaccine expectations, 2020 losses on Goldman earnings


Published: July 15, 2020 at 11:16 am ET

Earnings at Goldman Sachs Focus.
Getty

The stock climbed to ground Wednesday on optimism about progress on the COVID-19 vaccine candidate despite rising US cases, while investors digested earnings reports and kept watch on US-China tensions.

What are the major indices doing?

Dow jones industrial average

Djia

At the start of Wednesday’s session, it traded up 26284 points, up 342 points, or 1.3%, to a level of 27,071.33. S&P 500

SPX

Year-over-year losses were up 25 points, or 1.1%, to 3,232. Nasdaq composite

Comp

Climbed 81 points, or 0.8%, to 10,569.

The Dow finished 556.79 points, or 2.1%, at 26,642.59 on Tuesday, while the S&P 500 advanced 42.30 points to end at 3,197.52, up 1.3%, as energy stocks and material stocks wept. The Nasdaq Composite Index gained 97.73 points, or 0.9%, to close at 10,488.58, erasing losses seen earlier in Tuesday’s session.

What’s driving the market

Boom after global equity Modern Inc.

mRNA

Said that its coronavirus vaccine candidate caused a “strong” immune-system response in a large group of people and that the study would proceed to a clinical trial in July.

In addition, UK television broadcaster ITV reported that positive news could come on Thursday in early trials of the Oxford Kovid-19 vaccine, supported by AstraZeneca

AZN

AZN

.

“Although sentiment was removed by modern testing, investors are not lowering their hopes on this vaccine alone. Instead, we see the potential to reduce the impact of COVID-19 in a vaccine and reduce the number of treatment efforts, ”Mark Haefel, Chief Investment Officer UBS Global Wealth Management, said in a note.

Heffel stated that 13 vaccine candidates were in human clinical trials as of June 29. He expected that in the fourth quarter of this year, the director of the National Institute, Drs. The vaccine will be widely available in the fourth quarter of this year, echoed by Anthony Fauci. Allergic and infectious diseases, that a vaccine will arrive relatively soon.

The second quarter corporate earnings reporting season was also in focus after it started on Tuesday with the results of a trio of major banks. Dow component on wednesday Goldman Sachs Group Inc.

GS

GS

Given results that beat expectations for earnings, shares rose 5.8% in premarket action. The bank also reported its second highest revenue in history.

Meanwhile, President Donald Trump said late Tuesday that he signed a bipartisan bill that approved China for its security over Hong Kong, as well as China for “repressive actions” against former people of the British colony. Also gave an executive order to be held responsible. Trump also said that he had signed an order ending US preferential treatment for Hong Kong. China said it would impose counter-sanctions against American individuals and institutions, news reports said.

In US economic data, the New York Federal Reserve Bank’s Regional Empire State Index on Wednesday posted its first positive readings since February.

Industrial production topped with a growth of 5.4% in June, with a 1.4% gain in May. According to Marketwatch’s survey, Wall Street economists had projected a growth of 4.1%.

Meanwhile, Philadelphia Fed President Patrick Harker said Wednesday that he would support a change in monetary policy, where the economy would remain warm until the central bank raised inflation above the central bank’s 2% annual target before raising interest rates. The latest Beige Book report by the Fed is a true compilation of economic activity across the country, scheduled for release at 2 pm Eastern.

Which companies are the focus?
  • Apple Inc.

    GS

    The shares rose 1.9% after winning a court battle with the European Union over a € 13 billion ($ 15 billion) Irish tax bill dispute.

  • Dow component UnitedHealth Group Inc

    Uhh

    Shares fell 1.7% after the health care company rose above expected profit in the second quarter, but revenue declined as premiums and services revenue declined.

  • Moderna

    mRNA

    The shares gained nearly 12% following the announcement of a positive vaccine.

  • Amazon.com Inc.

    AMZN

    Said that it will create 1000 new full-time jobs, as it plans to open a new fulfillment center in Pflugerville, Texas. The shares of the e-commerce giant registered a slight decline.

  • Walmart Inc.

    WMT

    Announced that all US stores and Sam’s Club warehouse starting July 20 would require face coverings. Its shares were up slightly.

How are other markets trading?

In Asia, Shanghai Composite

SHCOMP

It fell 1.6% to close at 3,361.30, while the CSI 300 index

000,300

Plunged 1.3%. Japan’s Nikkei 225 Index

NIK

Lost 1.6%, while the Hang Seng Index in Hong Kong

Hsi

Closed at 25,481.58 points with a gain of 3.69 points.

In Europe, Pan-European

SXXP

Stokes 600 Europe index rose 1.9%, while London’s FTSE 100

UKX

Was up 2%.

Yield on the benchmark 10-year Treasury note

TMUBMUSD10Y

Rose 4.4 basis points to 0.658%. Yields and bond prices move in opposite directions. ICE US Dollar Index

DXY

,
A measure of currency was off 0.4% against a basket of six major rivals.

Oil futures gain momentum with US benchmark

CL.1

1.5% to $ 40.90 per barrel on the New York Mercantile Exchange. Gold

GC00

The futures were reduced to $ 1,808.60 an ounce.

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