Stock-index futures pointed to a higher start for Wall Street Wednesday, as investors took some cheer from positive results for a COVID-19 vaccine candidate in a study, looking past a continued rise in cases and as earnings reporting season continues and U.S.-China tensions rise.
What are major indexes doing?
Futures on the Dow Jones Industrial Average YM00, +1.59% rose 400 points, or 1.5%, to 26,891, while S&P 500 futures ES00, +1.23% advanced 37.40 points, or 1.2%, to 3,221. Nasdaq-100 futures NQ00, +0.84% were up 100.75 points, or 1%, at 10,747.
The Dow DJIA, +2.13% on Tuesday gained 556.79 points, or 2.1%, to end at 26,642.59, while the S&P 500 SPX, +1.34% advanced 42.30 points to finish at 3,197.52, a gain of 1.3%, as energy shares and materials shares rallied. The Nasdaq Composite Index COMP, +0.94% closed with a gain of 97.73 points, or 0.9%, to settle at 10,488.58, erasing losses seen earlier in Tuesday’s session.
What’s driving the market
Global equities were buoyed after Moderna Inc. MRNA, +4.54% said its coronavirus vaccine candidate produced a “robust” immune-system response in a larger group of people and that the study would move to a decisive clinical trial in July.
Also U.K. television broadcaster ITV reported on potentially positive developments around an Oxford vaccine backed by AstraZeneca PLC AZN, +4.35% AZN, +1.39%.
“Investors are hopeful that we are getting closer and closer to finding effective treatments for coronavirus and an end to the pandemic, which could then clear the way for a big rebound in economic activity with so much stimulus money already in place by governments and central banks,” said Fawad Razaqzada, market analyst at ThinkMarkets, in a note.
Corporate earnings reporting season continues, after starting Tuesday with results from a trio of major banks. Results were expected ahead of the opening bell Wednesday from Goldman Sachs Group Inc. GS, +2.45%.
Meanwhile, President Donald Trump late Tuesday said he signed a bipartisan bill sanctioning China for its security crackdown on Hong Kong as well as an executive order to hold China accountable for “oppressive actions” against the former British colony’s people. Trump also said he had signed an order ending U.S. preferential treatment for Hong Kong. China said it would impose retaliatory sanctions against U.S. individuals and entities, news reports said.
The economic calendar features the New York Federal Reserve Bank’s regional Empire State index for July at 8:30 a.m. Eastern. The U.S. import price index for June is due at the same time.
The Fed is scheduled to release June industrial production and capacity utilization data at 9:15 a.m. Eastern. Economists surveyed by MarketWatch, on average, forecast a 4.1% rise in production, while utilization is expected to rise to 67.7% from 64.8% in May.
Philadelphia Fed President Patrick Harker is scheduled to deliver remarks at noon Eastern, while the Fed’s latest Beige Book report, an anecdotal compilation of economic activity across the country, is set for release at 2 p.m. Eastern.
Which companies are in focus?
- Apple Inc. GS, +2.45% shares were up 1.5% in premarket trade after winning a court battle with the European Union in a dispute over a €13 billion ($15 billion) Irish tax bill.
- UnitedHealth Group Inc. UNH, +2.94% shares edged lower in premarket trade after the health care company reported a second-quarter profit that rose well above expectations, but revenue that came up short, as premiums and services revenue missed
- Shares of Goldman Sachs were up 1.2% premarket as investors awaited earnings.
- Moderna MRNA, +4.54% shares rose more than 13% ahead of the bell after its positive vaccine announcement.
How are other markets trading?
In Asia, the Shanghai Composite SHCOMP, -1.56% fell 1.6% to end at 3,361.30, while the CSI 300 Index 000300, -1.29% fell 1.3%. Japan’s Nikkei 225 Index NIK, +1.58% lost 1.6%, while the Hang Seng Index in Hong Kong HSI, +0.01% eked out a gain of 3.69 points to close at 25,481.58.
In Europe, the pan-European SXXP, +1.84% Stoxx 600 Europe Index rose 1.7%, while London’s FTSE 100 UKX, +1.82% was up 1.5%.
The yield on the benchmark 10-year Treasury note TMUBMUSD10Y, 0.643% rose 2.7 basis points to 0.638%. Yields and bond prices move in opposite directions. The ICE U.S. Dollar Index DXY, -0.34%, a measure of the currency against a basket of six major rivals, was off 0.4%.
Oil futures rose, with the U.S. benchmark CL.1, +1.29% up around 1.3%. Gold GC00, -0.26% futures edged lower.
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