July 15, 2020
Good Wednesday morning,
Tuesday ended a very volatile day of trading with all three major indices posting impressive gains. The Dow was the big winner by gaining 556.79%, or 2.13%, while the S&P 500 and the NASDAQ gained 42.30 and 97.72 points, respectively, or 1.34% and 0.94%. Although a great day, today is just as promising.
In the few minutes before the opening bell today, Dow futures are up 475 points with the S&P 500 and NASDAQ indicating solid gains as well.
News from drug maker Moderna that its vaccine produced a “robust” immune response - or neutralizing antibodies – in all 45 patients in its early stage human trial. “This should further increase confidence that we are getting a robust immune response,” said Michael Yee, a managing director at Jeffries. He continued, “our view that both Moderna and Pfizer-BioNTech are definitely on a good track to get a vaccine by the end of the year.”
Also adding to the surge in Dow futures is Goldman Sachs who reported quarterly earnings driven by a 93% surge in trading revenues, easily beating analyst expectations. JP Morgan Chase also reported better-than-expected quarterly earnings, also supported in a massive increase in trading revenue.
The development of a coronavirus vaccine may be the single biggest factor in eradicating the virus, or at least being able to avoid infection. It may also provide a much-needed boost for an economy struggling to recovery from the effects of the COVID lockdowns.