Conflicting messages on the distribution of a coronavirus vaccine are weighing heavily on Wall Street
Futures on the Dow Jones Industrial Average (DJI) are reversing course this morning, following yesterday's modest win amid the U.S. Federal Reserve's promise to keep interest rates near zero through 2023. The blue-chip index is set to open 295 points lower, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also eyeing sharp drops before the open, as Tech struggles to find stable ground.
Conflicting messages from President Donald Trump and the Centers for Disease Control and Prevention (CDC) about the distribution of a coronavirus vaccine are also weighing heavy on stocks tied to the economic reopening. The President announced late Wednesday that vaccines could be distributed in the U.S. as early as next month, while the director of the CDC said the vaccine won't be widely distributed for another six to nine months.
Continue reading for more on today's market, including:
- History says this construction stock could top its record high.
- Zillow stock named a "catalyst call buy" by analyst.
- Plus, Carnival sinks after vaccine timeline; behind Snowflake's historical market debut; Moderna's hopeful COVID-19 vaccine update.
5 Things You Need to Know Today
- The Cboe Options Exchange
(CBOE) saw over 1.5 million call contracts traded on Wednesday, and 795,119 put
contracts. The single-session equity put/call ratio jumped to 0.51 and the
21-day moving average rose to 0.49.
- Carnival Corp (NYSE:CCL) is down 3.3% in pre-market trading, with mixed COVID-19 news keeping a weight on the stock and its peers in the cruise and flight sectors. The security is down 67.7% year-to-date.
- Snowflake Inc (NYSE:SNOW) is down 8.6% before the bell, after shares more than doubled during the security's market debut yesterday in what constituted the largest initial price offering (IPO) for a software company in history. Snowflake was worth $70.4 billion by the end of the session, which is more than five times its $12.4 billion valuation in February.
- The shares of Moderna Inc (NASDAQ:MRNA) are up 2.1% in electronic trading, after CEO Stephane Bancel said the biotechnology company would know by November if they have enough data from its late-stage trial to verify whether its potential coronavirus vaccine works. The company also announced a collaboration to develop a treatment for cystic fibrosis. Year-over-year, the security is up 289.8%.
- Today's economic data features the Philadelphia Federal Reserve Manufacturing Index, as well as building permits and housing starts data.
European, Asian Markets Lower As Investors Digest Fed Update
Stocks in Asia were lower on Thursday, as investors reacted to the Federal Open Market Committee's (FOMC) decision to keep the overnight rate close to near zero until at least 2023 in order to hit its 2% inflation target. Meanwhile, the Bank of Japan (BoJ) decided to keep its monetary policy steady as well, and in response the country’s Nikkei fell 0.7%. Elsewhere, South Korea’s Kospi walked away with a 1.2% loss, with chemical stock LG Chem a notable laggard. Mainland stocks rounded out the regional losses, with Hong Kong’s Hang Seng and China’s Shanghai Composite falling 1.6% and 0.4%, respectively.
European markets are lower as well, as investors digest the Fed’s interest rate decision and await today’s policy meeting from the Bank of England – though the bank’s monetary stance is expected to remain unchanged. In response, France’s CAC 40 is down 0.8%, followed closely by the German DAX which is 0.7% lower. Lastly, London’s FTSE 100 is off by 0.5%, with IG Group helping contain the losses.