Stock market news live updates: Nasdaq hits fresh record as vaccine hopes rise, trade fears deescalate
The stock rose Tuesday morning and the Nasdaq Composite reached a new record high as hopes of a coronavirus vaccine increased and trade fears between the US and China eased.
French drug maker Sanofi (SNY, SNYNF) announced on Tuesday that it is expected to receive approval for its potential Covid 19 vaccine, which it will manufacture with GlaxoSmithKline in the first half of 2021, and if successful in the second half next year will be available year. While there are currently no vaccines to prevent the corona virus, numerous pharmaceutical companies have joined the race to develop drugs to prevent and treat the virus.
Stock futures declined sharply late Monday evening, but then turned positive after White House trading advisor Peter Navarro said during a Fox News interview that a trade deal with China had "ended". Then he went back to the remark and made it clear that the phase 1 trade agreement "remains" in subsequent statements to the media.
President Donald Trump added in a Twitter post on Monday evening that the China trade agreement "is completely intact".
Global stocks fell after Navarro's earlier interview with Fox News, with Dow futures falling more than 400 points before recovering. Stock futures had changed little at the start of the overnight session and were slightly higher.
Large tech stocks performed better on Tuesday. Apple, Microsoft, Facebook and Amazon each reached record intraday highs. Apple's inventory increase coincided with the company's annual Worldwide Developers Conference (WWDC), at which the iPhone maker announced that it would give up its 15-year partnership with Intel to make its own processors for its Mac devices.
Travel and leisure stocks, including airlines and cruise ships, declined after coronavirus cases continued to increase in some regions, raising concerns that the reopening process would be curtailed. Hospitalizations in Texas rose to a record based on Monday's numbers, and Governor Greg Abbott said the outbreak was growing at an "unacceptable rate" and warned that if the outbreak escalated, the restrictions on social distancing would worsen. In total, the cases in Florida rose again to over 100,000 on Monday.
“This reopening process is pretty important and we need to build some consumer trust because if we all sit in our homes in September or October because we think we'll be infected with the virus, the stock market won't work. I like that Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, told Yahoo Finance's The Ticker. “We believe that most of this rally is over for the year. We believe that by the end of the year we will see a range of range trading that will close somewhat higher. "
"To get there and maintain these levels, you have to see good medical news, you have to see some good business news, or at least better than expected business news," he added.
Other strategists also expected only a modest upward trend for the S & P 500. Jonathan Golub, Chief Equity Strategist of Credit Suisse, raised his price target for the S&P 500 at the end of the year from 2,700 to 3,200 at the end of the year, which corresponds to a value of 2.6% profit from the closing prices on Monday.
11:10 am ET: Nasdaq Composite hits a record high during the day as large tech stocks rise
The Nasdaq Composite rose more than 1% to hit a daily high of 10,169.14 at 11:10 a.m.CET after reaching a record high the day before. Large tech stocks won, and Apple, Microsoft, Facebook and Amazon each reached their own record highs throughout the day.
10:00 a.m.CET: The increase in sales of new homes in May exceeds expectations
Sales of new homes in May rose 16.6% compared to April, significantly better than expected to a seasonally adjusted annual rate of 676,000, the Ministry of Commerce said on Tuesday. This was another signal for a rapid recovery in the real estate market amid the coronavirus pandemic. Consensus economists had expected new house sales to increase by only 2.7% to 640,000.
Sales of new homes in April were revised down to drop 5.2% to 580,000 from the previous month, from a previously reported increase of 0.6% to 623,000.
9:45 a.m.ET: Markit Manufacturing, service PMIs show that the US economic downturn eased significantly in June.
According to IHS Markit's Preliminary Monthly Purchasing Managers' Indexes (PMI), US manufacturing and services activity has improved from the depths of its decline in early June this year. However, the profit margin was lower than expected by consensus economists.
The manufacturing purchasing managers' index rose from 37.5 in May to 49.6 in June, while a pressure of 50.0 was expected. Values below the neutral value of 50 indicate contraction in a sector.
The PMI for services rose from 37.5 in May to 46.7, which also fell short of expectations for 48.0.
“The flash PMI data showed that the economic downturn in the US eased significantly in June. The second quarter started at an alarming rate of collapse, but manufacturing and employment are now falling much more modestly in both manufacturing and services, ”said Chris Williamson, chief economist at IHS Markit, in a statement. "The improvement will raise hopes that the economy will return to growth in the third quarter."
"Although brief, the downturn was more violent than anything seen before, leaving a deep scar that will take a long time to heal," he added. "We expect the U.S. economy to shrink slightly more than 8% in 2020, so the focus in the coming months will be on how much recovery momentum the economy can make up to compensate for this loss of production."
9:31 am ET: shares open higher
Here were the main moves in the markets from 9:31 a.m.CET:
S&P 500 (^ GSPC): +25.05 points (+ 0.8%) to 3,142.91
Dow (^ DJI): +226.69 points (+ 0.87%) to 26,255.53
Nasdaq (^ IXIC): +75.03 points (+ 0.76%) to 10,132.05
Crude Oil (CL = F): + $ 0.2 (+ 0.49%) to $ 40.93 a barrel
Gold (GC = F): + $ 11.90 (+ 0.67%) to $ 1,778.30 per ounce
10-year Treasury (^ TNX): +1.6 basis points for a return of 0.72%
7:32 am ET Tuesday: Stock futures rise due to vaccine hopes and ease trade fears between the United States and China
Here were the main moves in the markets from 7:32 a.m. and Tuesday morning:
S&P 500 futures (ES = F): 3,136.25, plus 25.5 points or 0.82%
Dow futures (YM = F): 26,198.00, plus 245 points or 0.94%
Nasdaq futures (NQ = F): 10,196.25, plus 71.5 points or 0.71%
Crude Oil (CL = F): + $ 0.77 (+ 1.89%) to $ 41.50 a barrel
Gold (GC = F): + $ 3.30 (+ 0.19%) to $ 1,769.70 per ounce
10-year Treasury (^ TNX): +2.3 basis points for a return of 0.727%
10:33 p.m. ET Monday: Shares turn positive after officials clarify China's trade comments
Futures were traded here from 10:33 p.m. ET:
S&P 500 futures (ES = F): 3,114.00, plus 3.25 points or 0.1%
Dow futures (YM = F): 25,972.00, plus 19 points or 0.07%
Nasdaq futures (NQ = F): 10,123.5, plus 1.25 points or 0.01%
10:24 PM ET: Trump says China's trade deal is "fully intact"
President Donald Trump said in a Twitter post on Monday evening that the China trade agreement "remains intact".
Donald J. Trump
The China Trade Deal is completely intact. Hopefully they will continue to meet the terms of the agreement!
05:22 a.m. - June 23, 2020
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34.9K people talk about it
10:22 PM ET: Navarro says the Phase 1 trade deal with China "continues" according to Bloomberg
White House trade advisor Peter Navarro said in a statement to Bloomberg News on Monday evening that his comments on Fox News had been "wildly taken out of context".
"They had nothing to do with the Phase I trade agreement, which continues to exist," Navarro said in the statement, Bloomberg said. "I only spoke of the lack of trust that we now have with the Chinese Communist Party after they lied about the origins of the China virus and forced a pandemic on the world."
Dow futures were traded at 0.25% or 65 points. Nasdaq futures fell about 0.31% or 31.25 points, and S&P 500 futures fell 0.2% or 6.25 points.
10:10 p.m. ET Monday: Stock futures cut losses after Navarro reportedly declined China trade comments: WSJ
Stock futures reduced losses Monday night after Wall Street Journal reporter Alex Leary wrote in a Twitter post that White House trade advisor Peter Navarro told the outlet that his previous comment on China was not "like this." , as it appears".
Dow futures were trading near the flat line and fell less than 100 points after 10:10 p.m. ET. Previously, Dow futures were more than 400 points behind Navarro's original comments.
Peter Navarro tells @WSJ that his comment on China's "trade" is not "over" as it seems. Says he tried to say more about "trust". More TK.
4:50 am - June 23, 2020
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9:35 PM ET Monday: Stock futures futures fall after Navarro says the China trade agreement is "over"
"It's over," White House trade advisor Peter Navarro said Monday evening in an interview with Fox News about the trade deal with China. Stock futures sold out after the news.
Here were the key steps at the start of the US equity futures overnight session from 9:38 p.m. ET:
S&P 500 futures (ES = F): 3,077.25, minus 33.5 points or 1.08%
Dow futures (YM = F): 25,645.00, minus 308 points or 1.19%
Nasdaq futures (NQ = F): 10,022.00, minus 102.5 points or 1.01%
6:04 p.m. ET Monday: Stock futures rise in late trading
Here were the key steps at the start of the US equity futures overnight session from 6:04 p.m. ET:
S&P 500 futures (ES = F): 3,114.5, plus 3.75 points or 0.12%
Dow futures (YM = F): 25,978.00, plus 25 points or 0.1%
Nasdaq futures (NQ = F): 10,131.5, plus 6.75 points or 0.07%
A trader wears a mask while he works on the floor of the New York Stock Exchange (NYSE) while the building is indefinitely due to the outbreak of coronavirus disease (COVID-19) in New York (USA) on March 20, 2020 closes. REUTERS / Lucas Jackson
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