S&P 500, Nasdaq hits record high as Covid-19 vaccine, treatment picks up

Shares rose Monday morning, with the S&P 500 and Nasdaq hitting fresh intraday highs and adding to last week’s record levels as market participants reacted positively to developments over a coronavirus treatment, and signs that a vaccine in the long term could authorize.

Travel, airline and other “renewable” shares rally, with shares of American Airlines (AAL), Norwegian Cruise Line Holdings (NCLH), Wynn Resorts (WYNN) and their peers each jumping into pre-market trading.

The US Food and Drug Administration (FDA) said on Sunday that it had issued an authorization for emergency use for convalescent plasma researchers to treat Covid-19 in hospital patients. While the treatment has not yet undergone full clinical trials, the FDA said it considered the data to date suggest “product may be effective in treating Covid-19 and that the known and potential benefits of the product outweigh the known and potential risks of the product. “

President Donald Trump, speaking at a press conference, called the approval a “very historic breakthrough” and said the treatment reduced mortality by 35%, based on a study of patients by the Mayo Clinic.

Meanwhile, the Trump administration is also considering accelerating the rapid pursuit of a UK candidate for coronavirus vaccine by circumventing typical U.S. regulatory standards, the Financial Times reported over the weekend. One of the reports that was reportedly deleted would include the issuance of the vaccine candidate being developed by AstraZenaca and authorization for emergency use from Oxford University. However, a spokeswoman for the US Department of Health and Human Services also told the Financial Times that it was “absolutely false” that an authorization for emergency use would be issued for the US presidential election.

This week, the Republican National Convention (RNC) kicks off in Charlotte, North Carolina, days after former Vice President Joe Biden last week formally accepted the Democratic nomination for president at the Democratic National Convention (DNC). Although mostly virtual, some Republican leaders and delegates will be present in person for Monday’s events. Speakers for Monday are scheduled to meet former ambassador Nikki Haley, sen. Tim Scott (R., SC) and House Republican Whip Steve Scalise (R., La.), Along with President Donald Trump, who will speak on each day of the four-day event.

On the profit front, software company Palo Alto Networks (PANW) is set to report quarterly results after the market closes.

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10:03 am ET: S&P 500, Nasdaq hit record high intraday

Shares rose to record levels shortly after market opened Monday morning, adding to last week’s gains. Here were the key moves in markets, from 10:03 a.m. ET:

• S&P 500 (^ GSPC): +19.93 points (+ 0.59%) to 3,417.09

• Dow (^ DJI): +163.18 points (+ 0.58%) to 28,093.51

• Nasdaq (^ IXIC): +53.12 points (+ 0.47%) to 11,366.91

• Rau (CL = F): + $ 0.09 (+ 0.21%) to $ 42.43 a barrel

• Gold (GC = F): + $ 0.80 (+ 0.04%) to $ 1,947.80 per ounce

• 10-year Treasury (^ TNX): -1.5 bps to give 0.623%

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8:26 am ET: Despite $ 300 Federal Unemployment Benefit New Authorization: ‘Too Late for August Spending’: Goldman Sachs

Earlier this month, President Donald Trump authorized a program to implement a $ 300 additional federal unemployment benefit, targeting some $ 40 billion in disaster relief funds for states to distribute as payments to individuals for a maximum of an estimated three to five weeks.

Although states are able to make payments to individuals who are retroactive to Aug. 1, the new program is unlikely to help support consumer spending – the largest share of U.S. economic activity – this month, according to a new note from Goldman Sachs entitled, “The New $ 300 Benefit: Too Late for August Issues.”

“Reducing $ 600 unemployment insurance payments will result in a rough decline of $ 70 billion in monthly personal income in August – a sequential carrying capacity of consumer expenditures of up to 6.5% of PCE. [personal consumption expenditures] in the month. At best, the new $ 300 payment would cover half of this decline if it was fully implemented this month, ”said Goldman Sachs economist Blake Taylor. “But given delays in running the program and disbursing funds, the new program is likely to support meaningful income until September.”

“Despite high savings figures, this hit on revenue is likely to weigh on consumer spending and retail sales in August,” Blake added.

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7:11 am ET: Shares rally as Covid-19 vaccines, treatment piles up

Here were the key movements in stock markets, from 7:15 a.m. ET:

• S&P 500 futures (ES = F): 3,420.00, up 27.5 points or 0.81%

• Dow futures (YM = F): 28.130.00, up 271.00 points, or 0.97%

• Nasdaq futures (NQ = F): 11,661.5, up 99.5 points, or 0.86%

• Rau (CL = F): + $ 0.29 (+ 0.68%) to $ 42.63 a barrel

• Gold (GC = F): + $ 11.70 (+ 0.60%) to $ 1,958.70 per ounce

• 10-year Treasury (^ TNX): +0.1 bps to give 0.641%

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