Dow Dow Advances Nearly 500 Points as Vaccine Hopes Rise and Investors Boost Profits

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Stock index futures indicated a higher start for Wall Street on Wednesday, as investors rejoiced in the 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.

What do the main indexes do?

Futures on the Dow Jones Industrial Average US: YM00
up 490 points, or 1.9%, to 26,981, while the S&P 500 future US: ES00
increased by 42.15 points, or 1.3%, to 3,225.75. Nasdaq-100 future US: NQ00
were up 73.75 points, or 0.7%, to 10,720.

The Dow US: DJIA
On Tuesday, it gained 556.79 points, or 2.1%, to finish at 26,642.59, while the S&P 500 US: 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 US Composite Index: COMP
closed with a gain of 97.73 points, or 0.9%, to settle at 10,488.58, erasing the losses observed earlier in Tuesday’s session.

What are the market drivers

Global stocks were supported after Moderna Inc.
United States: MRNA
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 UK: AZN
United States: 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.
United States: GS
United States: GS
Results exceeded expectations in terms of revenue and profits on Wednesday, as stocks rose more than 4% in premarketing.

Meanwhile, President Donald Trump announced Tuesday that he has 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 output 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.
    United States: GS
    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.
    United States: UNH
    stocks rose slightly in pre-market trading after health care company announced second-quarter profit well above expectations, but revenue was insufficient as premium and service revenue was missed

  • Modern
    United States: MRNA
    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 CN: SHCOMP
fell 1.6% to finish at 3,361.30 while the CSI 300 Index XX: 000300
fell 1.3%. Japanese Nikkei 225 Index JP: NIK
lost 1.6% while the Hang Seng index in Hong Kong HK: HSI
gained 3.69 points to close at 25,481.58.

In Europe, the pan-European XX: SXXP
The Stoxx 600 Europe index rose 1.7%, while the London FTSE 100 UK: UKX
was up 1.5%.

The performance of the 10-year Treasury reference note BX: TMUBMUSD10Y
up 2.7 basis points to 0.638%. Bond yields and prices are moving in opposite directions. The ICE US Dollar Index US: DXY,
a measure of the currency against a basket of six main rivals, was 0.4%.

Oil futures increased, with the US benchmark: CL
up about 1.3%. American gold: GC00
futures contracts fell slightly.

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