US stock futures fell amid concerns about the Kovid-19 vaccine distribution and investors waited for a bumper day of earnings reports.
Futures in the broader S&P 500 index declined 0.7% and the Dow Jones Industrial Average futures lost 0.8%. Futures tied to the technology-heavy Nasdaq-100 fell 0.2%.
The delay in rollout of Kovid-19 vaccines, coupled with locking locking measures, marked a “double damper” of bad news for investors, said Hani Reda, portfolio manager at PovBridge Investments.
“I think the market had hoped that by now we would be talking about tightening restrictions and not restrictions.” “On vaccine rollout, this is very problematic for the near term. This is very important for shaping back the pace of development, and these issues are adding more delay to that. “
AstraZeneca rebuffed reports on Wednesday that it had pulled out of a meeting with EU officials, deepened as a dispute between two groups about a vaccine shortage.
The Biden administration said that by the end of summer on Tuesday, enough additional coronavirus shots would be purchased to vaccinate the US with most two-dose diets.
In Wednesday’s trading, investors were receiving results from AT&T,
Blackstone and Boeing on one of the busiest days of the quarterly income season. Earning from apple,
Facebook and Tesla are just after the market closes. Investors are eager to see how the tech giants performed during a quarter marked by a continuing lockdown and orders to stay home.
“The bar is high enough to beat tech stocks because we were still in lockdown and they are doing well relative to those high expectations,” Mr Reda said.
Microsoft shares gained 2.3% after the company’s record sales on Tuesday. Its shares closed at new highs on Tuesday.
Walgreens Boots Alliance grew 6.9% as Starbucks’ head of operations Rosalind Brewer, the next chief executive of a drugstore chain.
Earnings have pleased the market so far and investors continue to bet on funding from the Federal Reserve and a possible stimulus plan from the Biden administration. The S&P 500 hit a new intraday high on Tuesday before sliding into the final minutes of trading.
“The Fed and the new Biden stimulus schemes are a very positive backdrop for the equity market,” said Brian Walsh Jr., portfolio manager at Walls & Nicholson Financial Group. “They are saying that we are not allowing markets to fail right now and that bond yields are as low as they are anywhere else.”
The Fed is expected to leave monetary policy unchanged and Chairman Jerome Powell will underline the bank’s commitment to support the economy with lower interest rates and buying bonds for the foreseeable future. Mr. Powell will have to face questions about the health of the economy and how long the Fed’s stimulus measures will be implemented.
Inspired by social media, GameStop increased prepaid trading by more than 80% as day traders saw it ready to pile into the retailer for another day. The stock rose 113% Tuesday amid a fight between individual investors and hedge funds, who are undercutting the stock. After the market closed on Tuesday, Tesla CEO Elon Musk tweeted, “GameStonk !!” In a clear context for frenzied trade.
The data for durable goods orders will be 8:30 am ET. According to the data, the eighth monthly growth in the epidemic is expected, which will highlight the resilience of manufacturing during the epidemic.
In commodity markets, the international benchmark for oil, Brent crude, rose 0.1% to $ 55.72 a barrel. Gold fell 0.7% to $ 1,838.70.
The foreign, pan-continental stocks Europe 600 registered a decline of 1.1%, while the stock index was mixed in Asia. Japan’s Nikkei 225 fell 0.3%, Hong Kong’s Hang Seng fell 0.3%, while in mainland China, the Shanghai Composite rose 0.1%.
Write Will Horner at [email protected]
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