Stock index futures pointed to a higher start on Monday as investors prepare for a tough profit season and applaud news that the Food and Drug Administration granted the “fast track” status to a pair of vaccine candidates produced by Pfizer Inc. and German biotech company BoNTech SE.
What do important benchmarks do?
Futures on Dow Jones industrial average USA: YM00
rose 210 points, or 0.8%, to 26,187, while the S&P 500 futures US: ES00
gained 22.60 points, or 0.7%, to 3,001. Nasdaq-100 futures US: NQ00
increased 96.75 points, or 0.9%, at 1
The stock rose in thin trading last week, with technical shares firmly in the lead. Nasdaq Composite US: COMP
on Friday got his third record in a row and logged a 4% weekly increase which ended on Friday at 10617.44. The Dow US: DJIA
saw a 1% weekly increase to 26,075.30, while the S&P 500 US: SPX
advanced 1.8% for the week to 3,185.04. Friday’s session, meanwhile, saw the lowest daily volume since February 21, according to Dow Jones Market Data.
What drives the market?
The revenue season will start this week. The field, as a result of the pandemic, has been remarkably low and analysts will look for clues to a recovery from the third and fourth quarters that skeptics say can be difficult to fulfill.
Revenue outlook:S&P 500 revenue will stop as coronavirus fights against all sectors – with Wall Street counting on a bounce that may not come
“The profit for S&P 500 companies is estimated to have dropped by about 44% in the second quarter and given the impressive pace that consumption jumped back in the US and elsewhere after the closures were facilitated in May, many companies will have a simple job in beat the gloomy forecasts, “says Raffi Boyadjian, senior investment analyst at XM, on a note.” And that’s what most traders seem to be betting on. “
Stocks have shaken by a renewed rise in the number of coronavirus cases, which have risen over large parts of the Sun Belt, although analysts have warned that revival threatens to slow down if it does not track rebound in economic activity following the sudden halt caused by lockdowns late in the first quarter and through much of the second quarter.
Investors have also largely brushed off the threat of renewed tensions between the US and China. President Donald Trump said on Friday that there was no scope for a phase two agreement on trade between the two countries, saying Washington’s relationship with China had been “severely” damaged by the coronavirus pandemic, which the administration has been trying to blame Beijing. China’s transition to Hong Kong with the introduction of strict new national security laws has also led to tensions.
China said on Monday that US Senators Marco Rubio and Ted Cruz, Rep. Chris Smith and Ambassador for Religious Freedom Sam Brownback would stop the country from its criticism of the ruling Communist Party’s policy towards minority groups and believers. The move comes after Washington last week sanctioned senior officials of the Chinese Communist Party for alleged human rights violations in western China.
Looks:The US wants to sanction China against Hong Kong, but faces limited options
Instead, investors have been paying close attention to Chinese equities, which have increased to approval by Chinese authorities and have been instrumental in promoting global equity gains.
Read:China’s stock market jumped only 6%. This is good and Westerners should be happy. No really.
New York Fed President John Williams is scheduled to give a video talk of the transition from Libor at a Bank of England / New York Fed conference at 11:30 Eastern, while Dallas Fed President Robert Kaplan will give a speech at the National Press Club at 13:00 Eastern
Which companies are the focus?
Shares of Pfizer Inc.
and BioNTech SE
jumped into the premarket trade after the companies announced that two of their vaccine candidates to protect against the virus that causes COVID-19 received Fast Track status from the Food and Drug Administration.
Shares of PepsiCo Inc.
increased in pre-market trading after the beverage and snack giant reported profit and revenue from the second quarter, which declined less than expected thanks to a resilient snack and food company amid the COVID-19 pandemic.
As for news, chip maker Analog Devices Inc.
on Monday said it had agreed to acquire Maxim Integrated Products Inc.
in a stock trading with a combined company value of over $ 68 billion. Shares in analog units rose 0.9% in trading in the market before Maxim increased almost 17%.
What do other markets do?
In Asia, Shanghai Composite CN: SHCOMP
rose 1.8% while CSI 300 Index XX: 000300
advanced 2.1%. Japan’s Nikkei 225 Index JP: NIK
rose 2.2% while the Hang Seng index in Hong Kong HK: HSI
edged up 0.2%.
In Europe, the pan-European XX: SXXP
Stoxx 600 Europe Index rose 0.5% while London’s FTSE 100 UK: UKX
Return on benchmark 10-year Treasury note BX: TMUBMUSD10Y
increased by 1 basis point to 0.64%. Interest rates and bond prices are moving in opposite directions. ICE US Dollar Index US: DXY,
a measure of the currency against a basket of six major rivals was 0.1%.
Oil futures were under pressure, with the US benchmark US: CL
of more than 2% after the Wall Street Journal over the weekend said Saudi Arabia was pushing OPEC and its allies to ease production walls from August. Gold USA: GC00
futures were higher.