Posted: Jul 15, 2020 at 11:16 am ET
Goldman Sachs earnings in focus.
Getty
The shares gained ground Wednesday due to optimism about progress on a COVID-19 vaccine candidate despite mounting cases in the United States, while investors digested earnings reports and monitored tensions between the United States and China.
What are the main indexes doing?
The Dow Jones Industrial Average
DJIA
It rose 342 points, or 1.3%, to 26,984, briefly rising to 27,071.33 at the start of Wednesday’s session. The S&P 500
SPX
It increased 25 points, or 1.1%, to 3,232, erasing its losses from the year to date. Nasdaq compound
COMP
It rose 81 points, or 0.8%, to 10,569.
The Dow gained 556.79 points, or 2.1%, on Tuesday to finish at 26,642.59, while the S&P 500 advanced 42.30 points to finish at 3,197.52, a gain of 1.3%, as energy and materials stocks rebounded. The Nasdaq Composite Index closed at a gain of 97.73 points, or 0.9%, to settle at 10,488.58, erasing the losses seen earlier in Tuesday’s session.
What is driving the market?
Global actions were later optimized Modern Inc.
MRNA
He said his candidate for the coronavirus vaccine produced a “robust” immune system response in a larger group of people and that the study would go to a clinical trial in July.
British television network ITV reported that positive news will be received on Thursday about initial trials of the Oxford Covid-19 vaccine backed by AstraZeneca.
AZN
AZN
.
“While the Moderna trial raised sentiment, investors have not been relying solely on this vaccine. Instead, we see potential to reduce the impact of COVID-19 from a series of vaccine and treatment efforts, ”said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note.
Haefele noted that 13 vaccine candidates were in human clinical trials as of June 29. He hoped that a vaccine would be widely available, at the earliest, in the fourth quarter of this year, echoing the hopes of Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, that a vaccine would arrive relatively soon.
The second-quarter corporate earnings reporting season was also in focus, after kicking off Tuesday with results from a trio of major banks. Dow component Wednesday Goldman Sachs Group Inc.
GS
GS
delivered results that exceeded earnings expectations, with shares increasing 5.8% in pre-market action. The bank also reported its second highest earnings in history.
Meanwhile, President Donald Trump said Tuesday night that he signed a bipartisan bill that sanctions China for its security crackdown in Hong Kong, as well as an executive order to hold China accountable for “oppressive actions” against the people. from the old British colony. Trump also said he had signed an order ending the United States’ preferential treatment for Hong Kong. China said it would impose retaliatory sanctions against US individuals and entities, according to press reports.
In Wednesday’s US economic data, the Federal Reserve Bank of New York’s Empire State Regional Index for July posted its first positive reading since February.
Industrial production in June increased by 5.4%, in addition to the 1.4% increase in May. Wall Street economists had forecast a 4.1% increase, according to a MarketWatch survey.
Meanwhile, Philadelphia Fed President Patrick Harker said Wednesday he would support a change in monetary policy where the central bank would allow the economy to warm up until inflation rises above the bank’s 2% annual target. central before raising interest rates. The latest report from the Federal Reserve’s Beige Book, an anecdotal compilation of economic activity across the country, will be published at 2 pm EST.
Which companies are in focus?
- Apple Inc.
GS
The shares rose 1.9% after winning a court battle with the European Union in a dispute over an € 13 billion ($ 15 billion) Irish tax bill.
- Dow component UnitedHealth Group Inc.
UNH
Shares fell 1.7% after the health care company reported a second-quarter profit that rose well above expectations, but revenue fell short as premiums and service revenue lost
- Modern
MRNA
Shares rose nearly 12% after its positive vaccine announcement.
- Amazon.com Inc.
AMZN
He said he would create 1,000 new full-time jobs as he plans to open a new distribution center in Pflugerville, Texas. Shares of the e-commerce giant fell modestly.
- Walmart Inc.
WMT
announced that facial covers will be required in all U.S. stores and Sam’s Club warehouses beginning July 20. His actions increased slightly.
How do other markets operate?
In Asia, the Shanghai compound
SHCOMP
fell 1.6% to end at 3,361.30, while the CSI 300 index
000300
fell 1.3%. Japan Nikkei 225 Index
NIK
lost 1.6%, while the Hang Seng Index in Hong Kong
HSI
He earned 3.69 points to close at 25,481.58.
In Europe, the pan-European
SXXP
The Stoxx 600 Europe Index was up 1.9%, while London’s FTSE 100
UKX
up 2%.
The yield on the 10-year Treasury bond
TMUBMUSD10Y
increased 4.4 basis points to 0.658%. Yields and bond prices move in opposite directions. The ICE index in US dollars
DXY
,
A measure of the currency against a basket of six major rivals, was 0.4%.
Oil futures rose, with the US benchmark index.
CL.1
They rose about 1.5% to $ 40.90 a barrel on the New York Mercantile Exchange. Gold
GC00
futures fell to $ 1,808.60 an ounce.
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