The market report on Friday
- Global stocks mix as markets continue to focus on the worrying rise in coronavirus infections in Europe and the lack of a new fiscal stimulus deal from Washington.
- U.S. actions will attempt to trigger a three-day losing streak as lawmakers debate a new coronavirus relief bill, but hopes for a pre-election deal are fading amid Republican fighting.
- The World Health Organization says Gilead Sciences’ coronavirus treatment remdesivir had little impact on patients in a study of more than 11,000 patients.
- Wall Street futures climb higher in the opening bell after a stronger-than-expected September retail sales reading and an optimistic timeline for Pfizer̵
U.S. stock futures rose Friday after Pfizer Inc. (PFE) – Get report said it may be ready to apply for emergency use approval of its developing coronavirus vaccine as early as next month.
The optimistic timeline could help Wall Street trigger a three-day losing streak as many of the concerns that have put pressure on the markets this week, from rising coronavirus infections to faded hopes of a stimulus deal, continue to dampen the investor sentiment.
The shares were also underpinned by a stronger-than-expected September retail sales reading, which rose 1.9% from last year versus Street’s consensus forecast of a 0.7% rise.
President Donald Trump’s offer to increase the amount of supply in a Republican-led stimulus bill beyond the current $ 1.8 trillion level yesterday gave equities a boost in late session yesterday, but that rally took place. exhausted when Senate leader Mitch McConnell said he would not take him to his word, citing concerns both about the level of spending it would contain and the policies it would support.
McConnell’s reluctance, as well as the negotiating tactics of House Speaker Nancy Pelosi, likely mean no agreement will be reached in the few weeks remaining between now and November 3.
With investors now discounting the impact of any short-term fiscal push, the direction of the market will likely depend on the pace of corporate earnings growth in the coming weeks and the prospects for corporate closures and travel restrictions if the current wave of Coronavirus infections in Europe will find its way to the United States.
Futures contracts linked to the Dow Jones Industrial Average suggest a drop in the opening bell of 150 points before the release of retail sales, while those linked to the S&P 500 are priced at 17 points. Futures on the Nasdaq Composite, meanwhile, are leading for a 76-point gain for the technology-focused benchmark.
Gilead Sciences (GOLDEN) – Get report Shares were an early engine of note, down 1.15% in pre-market trading after the World Health Organization said its treatment for the developing coronavirus, remdesivir, had little impact on patients in a study of over 11,000 patients.
The US dollar index, which tracks the greenback against a basket of six global currencies, was marked down 0.15% to 93.717, but still looks on track to post its best weekly gain since summer amid the rising tide of global risk aversion in financial markets.
Meanwhile, the benchmark 10-year Treasury bond yields increased by about 1 or 2 basis points, to 0.727%.
European equities were firmly ahead at the start of trading on Friday, with the Stoxx 600 up 1% in Frankfurt and the UK FTSE 100 up 1.35% in London, while equities in Asia closed the session down after the negative close on Wall Street and last night’s overhang of rising coronavirus infection rates in Europe and the lockdowns they triggered in the region’s major economies.
Global oil prices were also lower at the start of European trade, held back once again by concerns that the blocs will reduce demand in the short term, but will continue to trade in the tight range that has defined the well-supplied market for a number. of weeks.
WTI contracts for November delivery, the US benchmark, traded 51 cents lower since Thursday’s close in New York and traded at $ 40.45 a barrel in early European trades while Brent contracts for December, the global benchmark, they were seen down by 59 cents to $ 42.57. per barrel.