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COVID-19 vaccines

Stock Futures Rise on Vaccine Progress Amid Rising Infection Rates and Economic Concerns

Strategic Insights

— 1 min read

Investors welcomed further progress on the development of a coronavirus vaccine, but were hard-pressed to ignore rising infection rates and curbs on businesses that could hamper an economic recovery. Stock futures rose Monday as pharmaceutical companies AstraZeneca and Pfizer announced positive results from late-stage trials of their respective vaccines. Meanwhile, Regeneron Pharmaceuticals received emergency use authorization from the FDA for its experimental antibody Covid-19 treatment. The economic calendar in the U.S. will include reports on Consumer Confidence, third-quarter Gross Domestic Product, and New Home Sales, among others.

Key Takeaways:

  • Stock futures rose Monday as investors welcomed progress on the development of a coronavirus vaccine, with contracts linked to the Dow Jones Industrial Average up 197 points, S&P 500 futures gaining 20 points, and Nasdaq futures rising 43 points.
  • AstraZeneca's vaccine candidate, developed in partnership with the University of Oxford, was found to be as much as 90% effective in preventing disease, with an average efficacy rate of 70%.
  • Pfizer's vaccine was found to be 95% effective in late-stage trials, while Moderna's vaccine was found to be 94.5% effective.
  • Regeneron Pharmaceuticals received emergency use authorization from the FDA for its experimental antibody Covid-19 treatment, which was found to cut down Covid-19-related hospitalizations in high-risk patients.
  • Urban Outfitters and Warner Music Group are set to report earnings on Monday, while reports are expected from Best Buy, Deere, and others throughout the week.
  • The economic calendar in the U.S. will include reports on Consumer Confidence, third-quarter Gross Domestic Product, and New Home Sales, among others.
  • Tesla's price target was raised to $560 at Wedbush, with the bull case now set at $1,000.

Sources:

  • The Street: "Stock Market Rally on Hold Amid Pressure on Earnings"
  • AstraZeneca: "AstraZeneca and Oxford University: Phase 3 Results for AZD1222, the ChAdOx1 nCoV-19 vaccine candidate, in the prevention of COVID-19"
  • Pfizer: "Pfizer and BioNTech Announce Dose Level Cuts in Ongoing Phase 3 Study of COVID-19 Vaccine Candidate BNT162b2"
  • Moderna: "Moderna Announces Modification to Phase 3 Study of COVID-19 Vaccine Candidate mRNA-1273"
  • Regeneron Pharmaceuticals: "Regeneron Pharmaceuticals Receives FDA Emergency Use Authorization for its Covid-19 Antibody Treatment"
  • Wedbush: "Wedbush Raises Tesla Price Target to $560"

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