Stock index futures were aiming for a higher start on Monday as investors prepare for a tough earnings season and applaud the news that the Food and Drug Administration granted “fast track” status to a couple of candidates for vaccines produced by Pfizer Inc. and the German biotech firm BoNTech SE.
What are the main benchmarks doing?
Futures in the Dow Jones Industrial Average YM00,
it was up 210 points, or 0.8%, at 26,187, while the S&P 500 ES00 futures,
He earned 22.60 points, or 0.7%, at 3,201. Nasdaq-100 NQ00 futures,
They rose 96.75 points, or 0.9%, to 10,934.
Shares rose in light trade last week, with technology stocks firmly in the lead. The Nasdaq COMP Compound,
on Friday it posted its third consecutive record close and recorded a weekly increase of 4% that ended Friday at 10617.44. The Dow DJIA,
saw a weekly increase of 1% to 26,075.30, while the S&P 500 SPX,
It 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 is driving the market?
The earnings season will begin this week. The bar, as a result of the pandemic, has been set remarkably low and analysts will be watching the results for clues to a third and fourth quarter rebound that skeptics say could be difficult to meet.
Earnings outlook:S&P 500 earnings plummet as coronavirus hits all sectors, with Wall Street expecting a rebound that may not come
“Profits for S&P 500 companies are estimated to have plunged by approximately 44% in the second quarter and given the impressive rate at which consumption rebounded in the United States and elsewhere after the locks calmed down in May many companies will have an easy job to beat the bleak outlook, “Raffi Boyadjian, investment analyst at XM, said in a note. “And this is what most operators seem to bet on.”
The actions have shaken a renewed rise in the number of coronavirus cases, which have largely increased in the solar belt, although analysts have warned that the resurgence threatens to slow down if the rebound in economic activity is not derailed after the shutdown. sudden caused by late blockages in the first trimester and for much of the second trimester.
Investors have also largely dismissed the threat of renewed tensions between the United States 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 that Washington’s relationship with China had been “severely damaged” by the coronavirus pandemic, which the administration has tried to blame Beijing. China’s move to crack down on Hong Kong with the passing of strict new national security laws has also raised tensions.
China said on Monday it would ban entry to the country by U.S. Senators Marco Rubio and Ted Cruz, Rep. Chris Smith and Ambassador for Religious Freedom Sam Brownback for their criticism of the ruling Communist Party’s policies towards minority groups and people of faith. The move comes after Washington last week sanctioned senior Chinese Communist Party officials for alleged human rights abuses in western China.
See:The United States wants to sanction China over Hong Kong, but faces limited options
Instead, investors have paid more attention to Chinese equities, which have emerged before the approval of the Chinese authorities and appear to have helped generate global equity gains.
Read:China’s stock market just jumped 6%. This is a good thing and Westerners should be happy. Not really.
New York Fed President John Williams is slated to deliver a video speech on the Libor exchange at a Bank of England / New York Fed conference at 11:30 am Eastern time, while Dallas Fed President Robert Kaplan will deliver a speech at the National Press Club at 1 pm ET
Which companies are in focus?
Actions of Pfizer Inc.
PFE
and BioNTech SE
BNTX
It jumped into pre-market commerce after the companies announced that two of their vaccine candidates to protect themselves against the virus that causes COVID-19 received Fast Track status from the Food and Drug Administration.
Actions of PepsiCo Inc.
ENERGY,
It increased in pre-market trade after the beverage and snack giant reported second-quarter profit and revenue that declined less than expected thanks to a resilient snack and food business amid the COVID-19 pandemic.
In news of the deal, chipmaker Analog Devices Inc.
ADI
on Monday he said he had agreed to acquire Maxim Integrated Products Inc.
MXIM
in a stock deal with a combined business value of more than $ 68 billion. Analog Devices shares rose 0.9% in pre-market trading, while Maxim shares rose nearly 17%.
What are other markets doing?
In Asia, the Shanghai SHCOMP compound,
increased 1.8%, while the CSI index 300 000 300,
advanced 2.1%. Nikkei 225 Index NIK from Japan,
increased 2.2%, while the Hang Seng Index in Hong Kong HSI,
it was up 0.2%.
In Europe, the pan-European SXXP,
The Stoxx 600 Europe Index rose 0.5%, while London’s FTSE 100 UKX,
it gained 0.9%.
The yield on the 10-year Treasury bond TMUBMUSD10Y,
It rose 1 basis point to 0.64%. Yields and bond prices move in opposite directions. The ICE US Dollar Index 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 CL.1,
more than 2% after The Wall Street Journal over the weekend said Saudi Arabia was pressuring OPEC and its allies to ease production restrictions starting in August. Gold GC00,
Futures were higher.
.
