Stocks rise after Pfizer, BioNTech feed Covid-19 vaccine

The shares extended the gains Monday morning after two pharmaceutical companies received the “fast-track” designation for the development of their Covid-19 vaccine candidates, fueling hopes for a short-term inoculation amid the pandemic.

Pfizer (PFE) and BioNTech SE (BNTX) announced that two of the companies’ four research vaccine candidates received the designation from the U.S. Food and Drug Administration, which aims to accelerate development and review of new drugs and vaccines. The shares of both companies rose in pre-market trading.

Over the weekend, some states reported an increasing number of new coronavirus cases again as parts of the country struggled to keep new infections at bay. Florida reported a record 15,300 new cases of Covid-19 as of Sunday, the highest one-day total for any US state so far during the pandemic, while new deaths in Florida fell by more than half compared to the day before 45.

Despite continued growth in the state, Disney’s Walt Disney World Resort (DIS) began reopening in Florida on Saturday to join competitors including Comcast’s Universal Studios (CMCSA) and SeaWorld Entertainment to open its park doors to customers. in the state.

Elsewhere, new deaths in Arizona increased for the third consecutive day, with 86 reported through Sunday. The state’s new case count of 2,537 marked a step below the 3,038 the previous day. California’s 8,460 new cases were below the state’s one-day average increase in the past seven days.

“The economic implications of the second wave are quite clear, at least qualitatively. The third quarter recovery will be slower than we previously expected, but we expect some of the deferred spending to be pushed into the fourth quarter rather than being completely abandoned, “Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a note.

“Markets are caught in the middle. We have argued for months that a full recovery depends on three pillars, namely sustained progress against the virus, continuation of super accommodative Fed policy and continued support of fiscal policy, “he added.” Clearly, the first The pillar has collapsed, and the third is now in limbo, with the Senate in recess until July 20. The Fed can’t do everything, so we’re not surprised that the S&P 500 has been in range since late May. “

As for other potential market catalysts, the second-quarter earnings season begins this week with a slew of earnings from the big banks, along with other initial reporters, including Netflix (NFLX), UnitedHealth Group (UNH), and Delta Airlines (DAL). Finances, which have lagged for the year to date, outperformed on Friday as the earnings season began, with the KBW Bank (KBW) index rising in five weeks at the end of last week.

Market participants have so far set a low bar for second-quarter earnings results across all sectors, with the coronavirus pandemic and steps taken to contain it at its most extended period in the April-June period of this year. The estimated decrease in earnings for the S&P 500 is 43.8% for the second quarter, according to FactSet data in early July. Such a result would represent the largest decrease in earnings year-over-year since the fourth quarter of 2008, and a strong downward revision to the estimate as of March 31, which had been for a decrease of 13.6%.

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9:31 am ET: stocks open higher

These were the main movements in the markets, as of 9:31 am ET:

• S&P 500 (^ GSPC): +26.76 points (+ 0.84%) to 3,211.8

• Dow (^ DJI): +249.99 points (+ 0.96%) to 26,325.29

• Nasdaq (^ IXIC): +115.28 points (+ 1.1%) to 10,731.46

• Raw (CL = F): – $ 0.32 (-0.79%) at $ 40.23 per barrel

• Gold (GC = F): + $ 15.20 (+ 0.84%) to $ 1,817.10 per ounce

• 10-year treasury (^ TNX): +2.5 bp to produce 0.658%

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9:11 am ET: PepsiCo shares rise after consumer pantry load fuels second quarter earnings

Food and beverage giant PepsiCo (PEP) reported second-quarter fiscal results that beat consensus estimates, driven by a jump in sales at the company’s North American food and snack business.

Basic earnings per share of $ 1.32 per share were better than expected at $ 1.25, and net income of $ 15.95 billion also exceeded estimates of $ 15.39 billion. Organic Sales PepsiCo’s Quaker Foods North America unit increased 23% last year, or more than three times more than expected, and Frito-Lay North America also performed better. However, PepsiCo’s beverage unit in North America, the largest by sales, experienced a 7% drop in organic revenue during the quarter.

“Our snack and food business has performed very well, while our beverage business was challenged but continued to improve its competitive position,” PepsiCo CEO Ramón Laguarta said in prepared comments on Q2 results. We expect our snack and food businesses to remain resilient, albeit with some moderation in growth, while our beverage business should deliver better performance during the second half of this year. “

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