Dow Futures Roar Higher on Vaccine Optimism

Travel stocks are a big hit today

Assistant Editor
May 26, 2020 at 9:29 AM
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Dow Jones Industrial Average (DJI) are soaring to kick off the holiday-shortened week, up over 500 points at last check, as investors unwind the optimism surrounding the reopening of the economy and potential for a coronavirus vaccine. Biotech company Novavax (NVAX) is making waves this morning, after announcing it had begun clinical trials on a potential COVID-19 vaccine over the weekend, with initial results expected in July. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are beginning the week up as well, even as coronavirus cases in the U.S. climb to over 1.6 million, according to Johns Hopkins University.

Continue reading for more on today's market, including: 

  • Bulls are piling on Palo Alto stock after a positive third-quarter.
  • Despite a dismal outlook, Deere stock captured a second-quarter beat.
  • Plus, GILD making COVID-19 vaccine advances; Hertz files for bankruptcy: and a video game stock is upgraded. 


Stock Futures Chart May 26

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.5 million call contracts traded on Thursday and 829,082 put contracts. The single-session equity put/call ratio rose to 0.57, and the 21-day moving average remained at 0.59.
  2. The shares of Gilead Sciences, Inc. (NASDAQ:GILD) are up 0.9% before the open, after peer-reviewed data showed that its drug remdesivir is effective at helping COVID-19 patients recover at a pace about four days ahead of those given a placebo. Year-to-date, GILD is up 12.9%.
  3. The shares of Hertz Global Holdings Inc (NYSE:HTZ) are down during pre-market, after unsuccessful talks with creditors led the company to file for Chapter 11 bankruptcy. Thanks in no small part to the coronavirus pandemic, HTZ is down 80% year-over-year.
  4. BMO Capital hit Take-Two Interactive Software, Inc (NASDAQ:TTWO) with an upgrade to "outperform" sending the video game maker up 1.2% ahead of the open. The analyst in coverage sees tailwinds coming from consumers pouring more money into the video game industry thanks to stay-at-home orders.
  5. Today will bring the Chicago Fed national activity index, Case-Shiller home price index, and the FHFA home price index. Data on consumer confidence and new home sales will also come in. AZO and Lumber Liquidators (LL) will enter the earnings confessional.

OV Buzz Chart May 26

Overseas Stocks Enjoy Vaccine Optimism 

Stocks in Asia finished higher today after U.S. biotech company Novavax (NVAX) reported that it had begun the first human study of its potential coronavirus vaccine over the long weekend. Both Hong Kong’s Hang Seng and the Kospi in South Korea closed 1.8% higher, and China’s Shanghai Composite grabbed a 1% win. Meanwhile, Japan’s Nikkei soared 2.6% after Japan’s Prime Minister Shinzo Abe announced that the state of emergency will be lifted in the last five areas of the country.

In Europe, shares are also enjoying a bounce from Novavax’s clinical trial, as well as a boost from travel stocks. London’s FTSE 100 and the French CAC 40 are currently up 1.1% and 1%, respectively. Elsewhere, the DAX in Germany is posting a 0.6% gain after German business sentiment came in better than expected for May. 


 

 

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