Coronavirus News Feeds Continue To Be The Main Highlights
In Asia today, stocks are plunging as a resurgence in coronavirus cases shakes optimism for a swift economic recovery. Global coronavirus cases exceeded 10 million on Sunday and the death toll surpassed 500,000 people. Investors increasingly worry that economic reopening globally would not be easy and economic recovery may be weak. This is because of the recent rebound of coronavirus cases after the lockdown measures eased. For this reason, investors are getting more cautious and re-evaluating the risks to the stock market.
US Stock Futures Fluctuate As Virus Infections Top 10 Million
Stock futures sank on Sunday evening as a rising number of states across the country reimposed social distancing standards to try and curb increases in coronavirus spreads.
Dow futures slid 700 points, or 2.3% after cities and states hit with a resurgence of coronavirus infections, further disrupting business activity. Since then, more cities rolled back the reopening plans over the weekend. We have been expecting a smooth rebound across the whole economy, and when things like that happen, we could expect some volatility across the market in the near-term.
S&P 500 futures took the bids near 3,012, up 0.2% on a day, during the initial Tokyo session on Monday. The bounce-back could simply be due to news of a potential Covid-19 cure. Sinopharm Group, a major Asian drug manufacturer, mentioned that its second vaccine showed positive safety and generated a high concentration of antibodies among participants in phase I and II clinical trials.
Nasdaq futures are also edging lower amid the resurgence of coronavirus concerns. With the recent advertising boycott of Facebook (FB Stock Report) by a number of companies, it is not surprising to see the stock dragging the index lower. After all, Facebook is the fifth-largest company within the index.
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Nikola Is Open For PreOrders Today
Since Nikola (NKLA Stock Report) went public at the beginning of this month, the stock has been hovering around the $60-$75 price range. The company has its fair share of bulls and bears with regards to the projections of its future growth. After a one month wait, reservations are open today for the Badger, a hydrogen-electric pickup truck. I guess the reservation numbers will provide some clarification on the company’s prospects. The Badger aims directly after Ford’s F-150 and Tesla’s Cybertruck. Would the Badger be able to live up to its hype? You tell me.
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US Federal Reserve’s Minutes & Unemployment Data
Investors are closely watching the market as the minutes of Fed’s most recent monetary policy meeting will be released on Wednesday. During the press conference following the meeting, Fed Chairman Jerome Powell gave a bleak assessment of coronavirus’s economic effects. He made clear that there would be no increase in interest rates in the near future. The minutes should deliver further details on Wednesday. Those include the committee’s view of the prospects for a full recovery and the measures it is considering to stave off further damage.
The unemployment data that is forthcoming this Thursday is the most obvious indicator of economic health. After the record loss of 20 million jobs in April, expectations were high that May’s non-farm payrolls would continue to deteriorate. But that’s not the case for May, which saw the addition of 2.5 million jobs. The question here is, can we expect the trend from May to continue? Or should we expect the trend from April to resume now that there’s a spike in infections?
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U.S. Markets Are Closed On Independence Day 2020
We are going to have a long weekend ahead. The U.S. stock market will be closed this coming Friday. But before that, there are also a few companies that are reporting their earnings this week. Of those that are reporting, these are a few stocks that investors are paying close attention to. Among them are Micron Technologies (MU Stock Report), Constellation Brands (STZ Stock Report), FedEx (FDX Stock Report) and General Mills (GIS Stock Report).
