Dow futures rise 150 points to kick off the week amid more positive vaccine news
November 23, 2020 @ 17:00 +03:00
U.S. stock market futures were higher Monday after AstraZeneca and the University of Oxford said their coronavirus vaccine was up to 90% effective, becoming the third inoculation this month that was revealed to be effective in trial data. Futures contracts tied to the Dow Jones Industrial average advanced 155 points, or 0.5%. S&P 500 futures gained 0.5%. Nasdaq 100 futures added 0.3%. Stock futures cut their gains, however, after Dow Jones reported the Trump administration was weighing new measures against Beijing.
AstraZeneca said interim analysis showed its vaccine has an average efficacy of 70% with one dosing regimen showing effectiveness of 90%, while the other demonstrating 62% efficacy. This follows late-stage trial data from Pfizer-BioNTech and Moderna showing that their respective Covid-19 vaccines were around 95% effective. Shares of cruise lines and airlines jumped in premarket trading on hope distributing these vaccines would reopen the economy and boost travel early next year. Shares of Carnival Corp. added 4% while United Airlines rose 2.6% in premarket trading Monday.
The positive vaccine data this month has jolted stocks higher to record highs, despite concern about rising cases. Despite stalling out a bit last week, the Dow is up 10% in November. The S&P 500 is up 8%.
All three major averages finished Friday’s session lower, while the Dow and S&P 500 also posted a loss for the week, falling 0.73% and 0.77%, respectively, for their first negative week in three. The Nasdaq Composite managed to eke out a 0.22% gain for the week, marking its second straight week of gains.
The move lower came as Covid-19 cases continue to rise, with the U.S. reporting a record-high spike of more than 195,500 new cases on Friday. Public health officials have warned that Thanksgiving celebrations on Thursday could further exacerbate the outbreak.
Friday’s jump brings the seven-day average of new cases to over 167,600, an increase of nearly 20% compared with a week ago, according to a CNBC analysis of data compiled by Johns Hopkins University. The seven-day average of new cases are up by at least 5% week over week in 43 states and the District of Columbia, Hopkins data shows.
The spike has led to coronavirus-related restrictions in some places. On Thursday California Gov. Gavin Newsom instituted a “limited Stay at Home Order” on a majority of the state’s residents, requiring nonessential work and gatherings to cease between 10 p.m. and 5 a.m. The move followed New York City Mayor Bill de Blasio’s decision to close the nation’s largest school system amid a jump in cases.
Dow futures rise 150 points to kick off the week amid more positive vaccine news, CNBC, Nov 23